Headlam Group PLC (LON:HEAD) said revenue for July is currently ahead of last year, though it is difficult to forecast how trading will continue in the second half.
Total revenue for the six months to June 30 dropped 31% to £242mln, having recovered to a 14% dip in June from a 96% slump in April at the onset of lockdown.
However, interim loss before tax is estimated to be £25mln, against last year’s £2mln after reviewing its investment in tile specialist Domus, resulting in a £20.9mln write-down and planned job cuts.
The floor coverings distributor added it is not recommending an interim dividend to save cash amid the crisis, having ended the period with £22.5mln of net debt.
Upgrade to 'buy'
Analysts at Peel Hunt upgraded the stock to 'buy' from 'hold', maintaining the target price at 340p, commenting the update was encouraging.
Forecasts for the year to December were increased to £560mln from £500mln for sales and to £2.8mln from £20mln for loss before tax.
Shares advanced 10% to 281.74p on Monday in early trading.
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