Shares in Headlam Group (LSE:HEAD) rose 9% in early trading after the company announced £53.9 million in cash proceeds from property disposals as part of its ongoing transformation of the floor coverings business.
The sales, which achieved a 64% premium to book value and 14% above the latest market valuation, include assets in Ipswich, Gildersome, Leeds, and Uddingston.
The disposals will generate substantial income and place the group in a net cash position. The Ipswich property, now surplus to requirements, will be vacated after a relocation to a new distribution centre in 2025, while the Gildersome and Leeds sites will be leased back.
The move reflects Headlam's strategy to streamline operations, enhance efficiency, and maintain its market-leading customer service.
In early trading, the shares were up 12.3p at 143.8p.