Headlam Group has warned that its full-year results are likely to be at the lower end of analysts’ expectations.
The British floor coverings distributor posted in its half-yearly results a drop in sales of 5.2 percent and expects the downward trend to continue into the second half of 2018.
Pre-tax profit was £17.7 million for the period, which was up just 0.9 percent on the same period last year. Revenue for the group rose one percent to £337.5 million.
The company’s results come following the closure of Carpetright stores (LON: CPR), which are one of the sector’s major retailers.
The brokerage Peel Hunt said in a note: “(The) market is likely to remain tough given the slow property market.”
Analysts from Peel Hunt analysts are forecasting an adjusted profit of £44 million compared to the £40.7 million in 2017.
Shares in the group (LON: HEAD) are currently up 0.33 percent at 451,00 (1602GMT).