Headlam (GB:HEAD)
LSE:HEAD
Want to see GB:HEAD full AI Analyst Report?
Top Page
Headlam
(LSE:HEAD)
Select Model
Select Model
Rating:46Neutral
Price Target:
44.00 p
▼(-5.78% Downside)
Action:ReiteratedDate:05/02/26
The score is primarily held down by weak financial performance—contracting revenue, recent losses, and ongoing cash burn with a weakening balance sheet. Technicals show some near-term price strength versus moving averages, but overbought readings and a slightly negative MACD reduce confidence. Valuation is also constrained by negative earnings and no stated dividend yield.
Positive Factors
Distribution network & product breadth
A broad, trade-focused distribution network supplying carpets, vinyl, laminate and accessories supports durable recurring revenues and customer stickiness. Breadth of stocked categories and logistics capability create structural advantages for frequent deliveries and resilience versus single-product peers.
Negative Factors
Multi-year revenue decline and operating losses
Sustained top-line contraction and a shift to operating losses indicate weakening market position and loss of operating leverage. Persistent revenue declines compress gross profit and margins, making it harder to cover fixed distribution costs and undermining the business's ability to restore sustainable earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Distribution network & product breadth
A broad, trade-focused distribution network supplying carpets, vinyl, laminate and accessories supports durable recurring revenues and customer stickiness. Breadth of stocked categories and logistics capability create structural advantages for frequent deliveries and resilience versus single-product peers.
Read all positive factors
Headlam (HEAD) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£35.96M
Dividend YieldN/A
Average Volume (3M)318.67K
Price to Earnings (P/E)―
Beta (1Y)-0.24
Revenue Growth-15.92%
EPS Growth-227.33%
CountryUK
Employees2,000
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-0.88
Shares Outstanding80,846,990
10 Day Avg. Volume244,832
30 Day Avg. Volume318,670
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.34
Price to Sales (P/S)0.08
P/FCF Ratio-0.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.2
Revenue Forecast (FY)£527.05M
Headlam Business Overview & Revenue Model
Company Description
Headlam Group plc, together with its subsidiaries, sells, markets, supplies, and distributes floorcovering and other ancillary products in the United Kingdom and Continental Europe. The company offers its products to residential and commercial sec...
How the Company Makes Money
Headlam makes money primarily by purchasing floorcovering products and related accessories from manufacturers/suppliers and reselling them to customers at a markup, generating revenue from product sales. Its key revenue stream is wholesale/distrib...
Headlam Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
38
Negative
Cash Flow
18
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 498.70M | 593.10M | 656.50M | 663.60M | 667.20M |
| Gross Profit | 146.20M | 167.00M | 206.40M | 219.50M | 220.50M |
| EBITDA | -12.60M | -9.30M | 34.40M | 64.70M | 50.00M |
| Net Income | -81.90M | -25.00M | 7.70M | 33.60M | 24.40M |
Balance Sheet | |||||
| Total Assets | 354.70M | 397.70M | 462.30M | 435.40M | 472.50M |
| Cash, Cash Equivalents and Short-Term Investments | 26.10M | 12.00M | 21.10M | 2.10M | 61.20M |
| Total Debt | 125.70M | 62.30M | 94.10M | 38.00M | 43.50M |
| Total Liabilities | 244.70M | 206.70M | 241.90M | 210.60M | 240.40M |
| Stockholders Equity | 110.00M | 191.00M | 220.40M | 224.80M | 232.10M |
Cash Flow | |||||
| Free Cash Flow | -49.60M | -3.00M | -5.70M | -2.90M | 6.90M |
| Operating Cash Flow | -45.20M | 7.60M | 12.50M | 10.90M | 13.80M |
| Investing Cash Flow | 16.60M | 50.70M | -13.40M | -12.10M | 9.30M |
| Financing Cash Flow | 45.20M | -67.70M | 19.30M | -58.20M | -22.10M |
Headlam Technical Analysis
Negative
46.70
Price Trends
40.00
Negative
44.11
Negative
55.27
Negative
Market Momentum
-3.32
Positive
25.63
Positive
14.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HEAD, the sentiment is Negative. The current price of 46.7 is above the 20-day moving average (MA) of 36.27, above the 50-day MA of 40.00, and below the 200-day MA of 55.27, indicating a bearish trend. The MACD of -3.32 indicates Positive momentum. The RSI at 25.63 is Positive, neither overbought nor oversold. The STOCH value of 14.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HEAD.
Headlam Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £60.95M | 3.42 | 20.89% | 0.55% | 7.44% | 30.27% | |
72 Outperform | £4.16B | 6.30 | 23.58% | 2.57% | 4.13% | 8.25% | |
68 Neutral | £37.92M | 6.55 | 8.41% | 11.65% | -3.78% | -43.43% | |
68 Neutral | £45.17M | 7.48 | 3.09% | 3.45% | -0.90% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | £287.70M | 4.43 | 13.23% | ― | 8.82% | 440.57% | |
46 Neutral | £35.96M | -0.21 | -61.90% | ― | -15.92% | -227.33% |
* Consumer Cyclical Sector Average
GB:HEAD
Headlam
44.80
-49.80
-52.64%
GB:CFX
Colefax
1,180.00
400.07
51.30%
GB:DFS
DFS Furniture
124.50
-20.41
-14.08%
GB:HWDN
Howden Joinery
773.00
0.76
0.10%
GB:ULTP
Ultimate Products plc
45.25
-14.41
-24.15%
GB:SDG
Sanderson Design Group PLC
62.50
21.26
51.55%
Headlam Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Headlam Board Rejects Activist’s Bid to Replace Directors
Negative
Apr 28, 2026
Headlam Group, the UK’s largest floorcoverings distributor, runs multiple businesses and trade brands across the UK, France and the Netherlands, using a centralised network to give suppliers an effective route to market and customers a wide ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Headlam Faces Boardroom Challenge from 10% Shareholder First Seagull
Negative
Apr 27, 2026
Headlam Group has received a requisition notice from shareholder First Seagull AS, which holds just over 10% of the company’s issued share capital, seeking to call a general meeting. The proposed resolutions aim to remove the chair and two n...
Business Operations and StrategyExecutive/Board Changes
Headlam strengthens board with two senior non-executive appointments
Positive
Apr 14, 2026
Headlam Group, the UK’s leading distributor of floorcoverings, partners with suppliers worldwide to supply a wide range of flooring products to trade customers, supported by multiple trade and product brands in the UK, France and the Netherl...
Financial DisclosuresRegulatory Filings and Compliance
Headlam files 2025 Annual Report and reinforces disclosure for investors
Positive
Apr 9, 2026
Headlam Group plc, the UK’s leading distributor of floorcoverings, sources a wide range of products from global manufacturers and supplies them to trade customers through an extensive network and brand portfolio in the UK and continental Eur...
Business Operations and StrategyExecutive/Board ChangesDividendsFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Headlam deepens losses but backs 2027 profit goal as core customer strategy accelerates
Negative
Mar 25, 2026
Headlam Group, the UK’s leading floorcoverings distributor, has been reshaping its business around core independent retailer and contractor customers, rationalising product ranges and consolidating operations to improve margins and resilienc...
Business Operations and StrategyFinancial Disclosures
Headlam sets 25 March date to unveil 2025 full‑year results
Neutral
Mar 19, 2026
Headlam Group plc, the UK’s leading floorcoverings distributor, partners with manufacturers worldwide to supply an extensive product range and value‑added services such as ecommerce tools, marketing support and nationwide logistics to ...
Business Operations and StrategyExecutive/Board Changes
Headlam strengthens leadership with new CEO and interim CFO appointments
Positive
Mar 3, 2026
Headlam Group has appointed industry veteran Rob Barclay as Designate Chief Executive Officer, effective 9 March 2026, with full CEO responsibilities commencing on 27 April 2026. Interim Executive Chairman Stephen Bird will revert to his non-execu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.