Published by Global Banking & Finance Review®
Posted on March 25, 2026
2 min readLast updated: March 25, 2026
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Headlam warns on March 25, 2026 that it expects a material revenue drop over the next two years as it refocuses on core customers amid rising costs driven by the Middle East war, inflationary pressures on energy‑intensive materials, higher polypropylene and fuel prices, and weak consumer spending on
March 25 (Reuters) - British carpet maker Headlam warned on Wednesday that revenue will drop materially during the next two years as the flooring distributor refocuses on core customers, while the Middle East conflict drives costs higher across the industry.
The wider housing sector has been bracing for war-driven cost pressures, with higher energy prices raising the risk of inflation across energy-intensive building materials and squeezing margins.
Consumer spending on home improvements has continued to decline, Headlam said, adding that the Middle East war has significantly raised prices for polypropylene and fuel, creating cost pressures for the British flooring industry.
Headlam's underlying pretax loss came in at 39.5 million pounds ($52.88 million) in 2025, wider than the 31.7 million pounds in the year-ago period, as it deliberately exits low-margin business and refocuses on independent retailers amid weak market conditions.
($1 = 0.7469 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)
Headlam expects revenue to decline as the company focuses on core customers and cost pressures from the Middle East conflict increase industry expenses.
The conflict has raised prices for polypropylene and fuel, which drives higher costs for flooring distributors like Headlam.
Rising energy prices as a result of the Middle East conflict have contributed to higher costs and increased inflation risks for building materials.
Headlam is exiting low-margin business and refocusing on independent retailers to navigate challenging market conditions.
Headlam's underlying pretax loss in 2025 was 39.5 million pounds, up from 31.7 million pounds the previous year.
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