Headlam (HEAD)

[clissold345]

I bought Headlam today at 205p. There was a trading update yesterday (see link below). Strong balance sheet and clear accounts I believe. Management have done well in the past. If nothing fundamental goes wrong with the business, I'll just hold (for years?) until trading improves. They pay a decent dividend - hargreaves lansdown says 8.57% - (as long as they stay profitable).

https://www.investegate.co.uk/announcem ... e-/7935800

[dealtn]

Nice company I have researched and been invested in previously.

[simoan]

I bought Headlam today at 205p. There was a trading update yesterday (see link below). Strong balance sheet and clear accounts I believe. Management have done well in the past. If nothing fundamental goes wrong with the business, I'll just hold (for years?) until trading improves. They pay a decent dividend - hargreaves lansdown says 8.57% - (as long as they stay profitable).

https://www.investegate.co.uk/announcem ... e-/7935800

I’m not sure that dividend is correct and would not trust the data on the HL website. My data source shows a dividend of around 10p is expected for FY23, barely covered by earnings. I read the trading update and didn’t find it that easy to interpret and found it too vague to be honest. I think the best that you can say is it’s a decent value share at a cyclical low (earnings have slumped so PER is high) with strong asset backing (PTBV < 1). From memory the assets are mostly freehold property. I wish you well with it.

All the best, Si

[clissold345]

Likewise Group (LIKE) are one of Headlam's competitors. Here's an interview with Tony Brewer, CEO of Likewise (and former CEO of Headlam).

https://progressive-research.com/podcas ... n-carpets/