A prominent floor coverings distributor has reported the sale of properties valued at £53.9 million, excluding VAT, as part of its ongoing transformation plan. The transactions represent a 64% premium to the book value of £32.9 million and 14% above the last market valuation of £47.1 million. The profits from the sales will be recorded as non-underlying income, reflecting the strategic focus on optimising operations and improving efficiency.
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Headlam's company property sales consist of two significant transactions. The first involved the Ipswich, Gildersome, and Leeds properties, sold for £50.9 million. While Ipswich is set to be fully vacated following the relocation to a new distribution centre in Rayleigh by early 2025, the Gildersome and Leeds properties have been leased back to the company. The second transaction was the sale of the Uddingston property, deemed surplus to requirements, for £3.1 million, significantly above its last valuation of £2.3 million.
Headlam has received all proceeds in cash and now reports a net cash position, maintaining an extensive property portfolio valued at £95 million. CEO Chris Payne remarked that these sales reflect progress in enhancing operational efficiency, strengthening the balance sheet, and unlocking capital to reinvest in maintaining the company's market-leading position as a distributor.
In addition to the property transactions, Headlam has confirmed that Keith Edelman will step down as chair after six years with the company. He will not seek re-election at the Annual General Meeting in May 2025 and will assist in a transition period. The Board has announced that Stephen Bird will succeed Edelman as Chair. Bird, who brings extensive executive experience, including a tenure as Group Chief Executive of Videndum plc, will assume the role following his election at the AGM.
Payne expressed gratitude for Edelman's contributions, particularly his role in overseeing Headlam's transformation. He added that Bird's leadership would be invaluable as the company continues to implement its strategic plans.
Headlam's ongoing efforts demonstrate its commitment to reshaping operations while ensuring financial robustness and strong governance.
Source: www.bigfurnituregroup.com