Investment case

and competitive advantage

Next day delivery from extensive distribution network
Growing number of trade counter collection sites
Ability to service all sizes of customers
Broadest and largest product range, including exclusive own brands

£2.5 to 3bn UK market
Large segments of the market that Headlam is underweight in
Trade Counter and Larger Customer strategy to serve these customers better
Core market has declined materially in last three years providing good cyclical recovery underpin

Headlam was built through acquisitions of regional distributors
Opportunities to further simplify and modernise the business, to remove complexity and better serve our customers, unlocking £25m of profit improvement
ERP replacement programme, replacing 20+ year old system

Strong asset backing, including £94m of property assets
Transformation plan to release £90m+ of capital
Good underlying cash generation characteristics
£72m of borrowing facilities provided by supportive bank syndicate