Headlam Group (HEAD) investor relations material

H1 trading performance

• Revenue for continuing operations fell 22.8% year-on-year to £188.8 million, driven by a planned reduction in low margin sales and challenging market conditions.

• Operating losses increased compared to H1 2025, despite some cost savings.

• Revenue was further impacted by poor inventory availability, competitor dynamics, and unseasonably warm weather affecting demand.

Post period-end trading and liquidity

• Trading in July 2026 has remained consistent with June's performance.

• Net debt rose to £36.2 million at period end, up from £31.4 million at year-end 2025, reflecting ongoing losses and transformation costs, partially offset by £15.3 million in property disposal receipts.

• The group is actively managing liquidity and is in regular discussions with lenders.

Strategic review and transformation

• A full strategic review is underway, exploring options such as further lender support, sale and leaseback of HQ, additional property disposals, refinancing, new partnerships, and broader corporate actions.

• Refinancing offers have been received that could provide additional liquidity if completed.

• The review does not include seeking offers for the company, and there is no certainty of success or timing for these initiatives.

• A strengthened balance sheet is seen as key to resolving liquidity issues and accelerating the transformation programme to restore profitability and cash generation.