Headlam Group Full Year 2023 Earnings: EPS Beats Expectations

Headlam Group (LON:HEAD) Full Year 2023 Results

Key Financial Results

• Revenue: UK£656.5m (down 1.1% from FY 2022).
• Net income: UK£7.70m (down 77% from FY 2022).
• Profit margin: 1.2% (down from 5.1% in FY 2022).
• EPS: UK£0.096 (down from UK£0.40 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Headlam Group EPS Beats Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.5%.

The primary driver behind last 12 months revenue was the United Kingdom (UK) segment contributing a total revenue of UK£577.3m (88% of total revenue). Notably, cost of sales worth UK£448.7m amounted to 68% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to UK£131.3m (66% of total expenses). Explore how HEAD's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Retail Distributors industry in the United Kingdom.

Performance of the British Retail Distributors industry.

The company's shares are down 1.9% from a week ago.

Risk Analysis

It is worth noting though that we have found 3 warning signs for Headlam Group (1 doesn't sit too well with us!) that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.