31 July 2026

Headlam Group plc

('Headlam', the 'Company', the 'Group')

Update on Strategic Review Progress and Trading

Headlam (LSE: HEAD), the UK's leading floor coverings distributor provides an update on progress of the strategic review, as announced on 14 July 2026.

Trading continues to be challenging, although revenue throughout July 2026, to date, has been ahead of the performance seen in June 2026 by circa +3.5%. 

As previously announced, the Board, together with its advisors, is undertaking a full strategic review, at pace, of potential options to improve the Group's financial position (the "Strategic Review"). 

The Company continues to progress a review of its options which includes, but is not limited to, further support from its existing lenders, further property disposals, a wider group refinancing, new partnerships and other broader corporate actions, and the Company is finalising a plan which it is seeking to execute. 

Specifically, retaining the Coleshill HQ property as one of the Company's key freehold properties has been determined as part of the strategic options plan, and therefore a sale and leaseback of this asset is no longer being pursued. 

In addition, the refinancing process for the Group's debt package has progressed with financing offers received that would, if completed on the terms currently proposed, advance additional liquidity to the Group.  At this stage there can be no certainty that the Group will be successful in implementing any of these options, or any alternative solution to improve the Group's financial position, within a reasonable timeframe, or at all.

With a strengthened balance sheet, the Board believes it would be able to alleviate the current liquidity issues that are negatively impacting its ability to trade effectively and to fund and allow time to execute the strategic options plan with the aim of returning Headlam to a profitable and cash generative business as quickly as possible.

Further announcements will be made as and when appropriate.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 as it forms part of domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018, as amended. Upon the publication of this announcement, this inside information is now considered to be in the public domain. The person responsible for arranging the release of this announcement on behalf of the Company is Richard Jones, Interim Chief Financial Officer.