Business
COVID-19 Trading Update
COVID-19 Trading Update.
About this update from Headlam Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 5230H\n Headlam Group PLC\n 25 March 2020\n \n \n \n 25 March 2020\n \n Headlam Group plc\n ('Headlam' or the 'Company')\n COVID-19 Trading Update\n \n Headlam Group plc (LSE: HEAD), Europe's leading floorcoverings distributor, \n today announces a COVID-19 trading update.\n \n \n The Board is committed to following all of the UK Government's guidance and to ensuring the long-term sustainability and success of the Company. An overview of the short and longer-term measures the Company is taking in this regard is detailed below as well as an overview of the Company's financial position and liquidity. \n \n \n 2020 Trading and Full Year Expectations\n \n \n Trading to date in 2020, incorporating the majority of the first quarter, has been reasonably resilient, and broadly in-line with that of 2019. However, following the recent changes in UK Government guidance in response to COVID-19, the Company now expects an imminent and meaningful downturn in orders. As the overall impact on demand and over what time period is not yet known, it is not currently possible to provide guidance on the expected outturn for the financial year ending 31 December 2020. As soon as the Board has improved clarity, a further announcement will be made in respect of the anticipated 2020 performance. \n \n \n Operations and Cash Management\n \n The Company is focused on cash management and limiting operating costs to the lowest possible level in preparation for the expected meaningful reduction in orders, which will hopefully be deferrals and temporary in nature, until Government restrictions on movement are lifted. All non-critical operational and capital spend has been halted and all purchasing of stock ceased earlier this month.\n \n The Company closed all of its UK sites as of close of business yesterday until further notice, with the exception of its largest national distribution centre in Coleshill. This will enable the Company to fulfil demand which may arise, specifically within the commercial sector where there is essential work driven by health and safety requirements and medical or emergency infrastructure related orders. The Company has a significant inventory position, £132.5 million as at 31 December 2019, which will enable it to continue to fulfil demand for the foreseeable future. \n \n \n The opening of...