Headlam CEO resigns as board steps up turnaround strategy

The chief executive of floor coverings distributor Headlam Group has announced his resignation as the company steps up its turnaround plans following a 60% plunge in its share price since the start of the year.

Chris Payne, who joined Headlam as chief financial officer in 2017 before being appointed CEO in 2022, will leave the company with immediate effect.

"The board is accelerating the execution of the turnaround strategy to restore profitability and strengthen the Group's market position," the company said.

Headlam shares closed Thursday's session at 55.4p, down from the 140p level at the start of the year, with the company's financial performance dampened by a significant downturn in the flooring market over the past year.

Revenues were down 3.8% year-on-year over the first half to 30 June, with the underlying loss before tax swelling to £19.9m from £15.6m previously.

Non-executive chair Stephen Bird will take over as interim executive chair while the board runs a formal CEO succession process.

"This leadership change positions us to move forward with greater pace and focus. The Board is taking decisive action to deliver the transformation our business needs," Bird said in a statement.

"We would like to thank Chris for his efforts and wish him well for the future."

Shares were down 0.7% at 54p in early deals on Friday.