In-line with the Headlam Group Board's previously stated intention to maintain the 2019 full year dividend with that of 2018, the Board has proposed a final ordinary dividend of 17.45 pence per share (2018: 17.45 pence per share) bringing the total ordinary dividend declared and proposed in respect of 2019 to a maintained 25.0 pence per share (2018: 25.0 pence per share). If approved by shareholders at the forthcoming AGM in May 2020, the final ordinary dividend will be payable on 1 July 2020 to shareholders on the register as at 5 June 2020.
Revenue increased by 1.5% to £719.2 million (2018: £708.4 million) despite a soft market backdrop and weakness in the UK residential sector
Like-for-like revenue increased by 0.3% and 3.2% in the UK and Continental Europe respectively, resulting in an overall like-for-like revenue increase of 0.7%
Gross margin of 31.9% (2018: 32.3%) was fairly resilient despite the expected shift in business mix towards the commercial sector as a result of market conditions
Underlying distribution costs and administrative expenses were marginally up at £187.3 million (2018: £184.8 million, not restated), and flat as a proportion of revenue (2019: 26.0%; 2018: 26.1%)
Underlying operating profit of £42.2 million (2018: £44.3 million, not restated) and statutory operating profit of £38.3 million (2018: £41.3 million, not restated) were lower than 2018 and in-line with guidance given in January 2019
Underlying profit before tax of £39.5 million (2018: £43.4 million, not restated) and statutory profit before tax of £35.2 million (2018: £40.4 million, not restated)
Cash generation remained strong, with cash generated from operations representing 146% of statutory operating profit, equating to 107% (2018: 121%, not restated) after adjusting for the IFRS 16 lease principal repayments
Net funds of £27.0 million at year-end (2018: £36.7 million) following an increase in net cash outflows, including £13.4 million outflow on new Ipswich regional distribution centre
