Headlam Group PLC (LON:HEAD) posted an interim loss due to the pandemic, while summer trading remained mixed.
Revenue in July was higher year-on-year, but August was “marginally below” 2019, though cash collections exceeded expectations.
READ: Headlam sees recovery in trading with year-on-year growth in July
In the six months to June 30, the floorings distributor swung to a £24mln loss before tax from last year’s profit.
Revenue slid by a third to £242mln as Headlam hit by lockdown restrictions across the UK and Europe, with sales in the two regions dropping 34% and 9% respectively.
Net debt was cut to £7mln in July from £22mln in June.
"Headlam should emerge from this period with a more coherent and profitable business with strong free cash flow resulting in healthy dividend payments in time," analysts at Peel Hunt commented.
Shares advanced 1% to 308.28p early on Thursday.
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