Play the Fantasy Share Trading Game. Users who watch HEAD also watch: Ent. Steve Wilson held the position of CEO at Headlam Group at the time of this trade. S G Wilson held the position of Group Finance Director at Headlam Group at the time of this trade. Anthony J Brewer held the position of CEO at Headlam Group at the time of this trade. I bailed on the trading update due to the LfL comparisons and Carpetrights woes, which turned out to be a good move.
I still like the company but I’m wary of the move towards big projects such as those targeted by the Domas acquisition. A nice pullback and today’s bounce may suggest a bottom around 410p. One to watch – looking for the turn in LfL. Headlam Group results showed a drastic slowdown in the UK with LFL growth of 0. This is a sharp reversal in UK growth of 4. But management is optimistic about the future and says earnings are in-line with expectations.
I think the recent acquisition in Domus will help plug any earnings shortfall in 2018. Overall, I think Headlam is a progressive dividend payer and a much better business to hold in your investment portfolio than Carpetright, Topps Tiles and United Carpet Group. It’s an illiquid stock in the quiet periods between updates but I’ve found that buying modest lots on limit prices gets around the large spread. I now have a decent stake. Time will tell if my patience pays off.
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The contents of all ‘Chat’ messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates. London South East does not authorise or approve this content, and reserves the right to remove items at its discretion. The main valuation used by investors and a way of gauging whether a company’s share price is cheap or expensive compared to competitors. Companies also quote adjusted EPS figures to remove the effect of one-off exceptional figures from the profit figures. You divide the net profit by the number of shares in issue. Looking at whether the EPS is rising or falling over time is one of the most important indicators of whether a company is really making money for its shareholders.
Our figure is undiluted, meaning it is not adjusted for exceptional costs. Return on capital employed measures a company’s profitability in relation to how much capital is invested in the business. Generally, the higher the figure the better but with all these ratios it is best to compare companies from the same sector. A high double digit figure may mean a company has an advantage over its competitors because of a unique product but an oil company, for example, will have higher capital outlay than an online retailer. It has an estate of 1,568 pubs situated nationally, comprising managed, franchised and leased pubs. The share data supplied on this page is provided by AJ Bell Media and incorporates share prices, market news, indices, charts, fundamentals, heatmaps, stock screeners and investor research tools.