Headlam Group – 528p

7 December 2017 – trading update and acquisition

A trading update covering the 10 months to 31 October 2017 has been released.  Trading was positive and total revenue growth was 2.7% versus the same period a year earlier.  The acquisition of Domus, the UK’s leading specification consultant and supplier of hard surfaces for premium construction and refurbishment projects, has also been announced.  The total maximum consideration is £35.4m.  In 2016 Domus generated profit before tax of £2.9m on revenue of £29.6m.  Hence the deal has been completed on sensible terms.  We rate the shares as a BUY.

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