Following a drop in sales reported by floorcoverings distributor Headlam, the company has announced it could experience significant pre-tax losses. During the first four months of this year ending April 2024, the company reported its sales were down 12.3% year-on-year.
The company's statement on Big Furniture Group reads: 'Revenue in April did not show the expected seasonal uplift usually seen in the Spring period. The strategic growth initiatives have continued to perform well, with revenue from Larger Customers and Trade Counters continuing to grow, but this has been offset by ongoing decline in the overall floor coverings market, driven by continued weakness in the housing market and a deterioration in consumer spending.'
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The statement continues, 'This has resulted in revenue decline in the Regional Distribution business in the UK and in our Continental European business. Despite tight cost management and other mitigating actions, the lower revenue has impacted our profitability with a pre-tax loss for the Period of £10.6 million.'
In recent years, the floorcoverings group has been expanding its client base, and orchestrating a transformation programme, which has involved unifying and simplifying its sales and operations teams.
Source: www.bigfurnituregroup.com