Headlam Group (LSE:HEAD), the UK's leading floor coverings distributor, said first-half revenue fell 22.8% year-on-year to £188.8 million for the six months to 30 June.
The company attributed the decline partly to a deliberate reduction in low-margin sales as it refocuses on independent retailers and flooring contractors, alongside weak market conditions, poor inventory availability and unseasonably warm weather late in the period.
Operating losses for the half were higher than in the first half of 2025, reflecting the revenue drop offset partially by cost savings.
Net debt rose to £36.2 million at period end, up from £31.4 million at 31 December, despite around £15.3 million in property disposal proceeds.
Trading in July has been consistent with June, the company said.
Headlam is now undertaking a full strategic review with its advisers, examining options including further lender support, a sale and leaseback of its Coleshill headquarters, additional property disposals, a wider refinancing and new partnerships.
A refinancing process is "progressing at pace" and has already produced financing offers that would bring additional liquidity if completed as proposed, the company said, adding that the review excludes seeking offers for the company itself.
Half-year results are currently planned for release in September.
