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Headlam Group Enhances Liquidity with Tamworth Centre Sale-Leaseback

Story Highlights
  • Headlam sells Tamworth centre for £21.75 million, optimizing its distribution network.
  • Proceeds from the sale will reduce credit facility drawdown, aiding transformation plan.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Headlam Group Enhances Liquidity with Tamworth Centre Sale-Leaseback

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Headlam ( (GB:HEAD) ) has issued an update.

Headlam Group PLC has announced the sale and leaseback of its Tamworth distribution centre as part of its ongoing transformation plan. The transaction, valued at £21.75 million, represents a significant premium over the property’s book and market values. This move is expected to optimize the company’s mix of owned and leased distribution centers, with the leaseback being cost-neutral to the company’s underlying profit before tax. The proceeds from the sale will enhance liquidity by reducing the company’s drawdown on its revolving credit facility, supporting further implementation of the transformation plan.

Spark’s Take on GB:HEAD Stock

According to Spark, TipRanks’ AI Analyst, GB:HEAD is a Neutral.

Headlam’s overall stock score is primarily impacted by significant financial challenges and unfavorable valuation metrics. However, positive corporate events signal internal confidence, providing a degree of optimism. The technical analysis suggests stabilization, but financial health remains a primary concern.

To see Spark’s full report on GB:HEAD stock, click here.

More about Headlam

Headlam Group PLC is the UK’s leading distributor of floorcoverings, offering a broad range of products sourced from global suppliers. The company serves a diverse customer base, including independent and multiple retailers, contractors, and housebuilders, providing market-leading service through extensive product offerings, ecommerce support, and nationwide delivery. Headlam operates across the UK and Continental Europe, leveraging a network of businesses, trade brands, and product brands.

Average Trading Volume: 64,506

Technical Sentiment Signal: Sell

Current Market Cap: £69.04M

For an in-depth examination of HEAD stock, go to TipRanks’ Overview page.

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