Headlam: Flooring specialist’s shares rise after £54m property deals
Headlam shares spiked on Friday after the flooring specialist announced it would make a hefty profit from flogging off some of its properties via deals worth £53.9m.
It came alongside news that chair Keith Edelman will step down as of May 2025, to be replaced by Stephen Bird, the former chief executive of software firm Videndum.
The property deals are comprised of two separate transactions, with sales in Ipswich, Gildersome, Leeds and Uddingston in Scotland.
Headlam said it stood to gain a “substantial profit” from both transactions, with the deal representing a premium of 64 per cent to book value and 14 per cent to the last market valuation of £47.1m.
Shares jumped over 6.84 per cent by mid-morning.
The sale of the three properties in Ipswich, Gildersome and Leeds constitutes a “significant transaction” under listing rules and will likely go for a value of £50.9m.
Headlam said it had agreed a leaseback arrangement in Gildersome and Leeds, while the Ipswich property will be fully vacated after becoming “surplus to requirements.”
“These property transactions, on highly attractive terms, have been enabled by the progress we are making in optimising our operations, whilst also unlocking cash from our business, and further strengthening our balance sheet to re-invest in the Headlam proposition as the UK’s leading floorcoverings distributor,” chief executive Chris Payne said in a statement.
Speaking on Edelman’s departure, Payne said: “On behalf of the Board I would like to thank Keith for the extensive contribution he has made to the Company over the past six years, chairing the Board whilst we have made significant progress against our strategy and overseen our transformation plans.
“I’m pleased Stephen has agreed to be our next Chair and look forward to continuing to work with Stephen and the Board as we implement our transformation plan over the next two years”.