Headlam shares jump over 6% as flooring specialist cashes in on £54m property deals

Shares in Headlam surged on Friday following the flooring specialist's announcement of a significant profit from property disposals totalling £53.9m.

The Birmingham headquartered company also shared that its chairman, Keith Edelman, is set to retire in May 2025, with Stephen Bird, ex-CEO of software company Videndum, poised to take over, as reported by City AM.

The property sales involve two separate deals, including assets in Ipswich, Gildersome, Leeds, and Uddingston, Scotland. Headlam anticipates a "substantial profit" from these transactions, which are at a 64 per cent premium to book value and 14 per cent above the last market valuation of £47.1m.

By mid-morning, shares had climbed by more than 6.84 per cent. The sale of properties in Ipswich, Gildersome, and Leeds is considered a "significant transaction" as per listing rules, expected to fetch around £50.9m.

While leaseback arrangements have been agreed for Gildersome and Leeds, the Ipswich site will be vacated as it is no longer needed. "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," said CEO Chris Payne.

Commenting on Edelman's exit, Payne stated: "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."