What Headlam Group plc does

Headlam Group plc is Europe's largest distributor of floorcoverings, listed on the Main Market of the London Stock Exchange (LON:HEAD) and headquartered in Coleshill, Birmingham. The company acts as the distribution channel between global flooring manufacturers and UK trade customers — independent and multiple retailers, small and large contractors, and house builders — operating through 18 national distribution hubs, a network of trade counters (consolidated in 2024 under the Mercado brand), and a nationwide next-day delivery service. Its geographic footprint extends across the UK, France, and the Netherlands.

The product portfolio spans carpet, vinyl, rugs, tiles, and wallcoverings sourced from a broad supplier base, supplemented by own-brand sustainable lines including SpringBond carpet underlay (manufactured by partner Texfelt from recycled plastic bottles) and the [RE]lay recycled rugs brand. Headlam has grown through an aggressive acquisition programme that has added regional distributors (Garrod Bros, Rackhams, Ashmount, Supertex, CECO Flooring in Northern Ireland/ROI, Dersimo BV in the Netherlands), specialists (Edel Telenzo Carpets, Melrose Interiors, PD Pattern Books), and most recently 3D Flooring Supplies in April 2026 for £1.38 million. Subsidiaries largely operate under their own trade brands while sharing Headlam's distribution network and centralised financial resources.

The business model is a B2B transactional distribution take rate: revenue is generated from product margin and distribution fees on goods sold to trade customers at quote-based, negotiated pricing, with no publicly disclosed consumer pricing. Headlam also earns specification-led project revenue via CECO in Northern Ireland/ROI and operates a small online rug business (Melrose Interiors) including third-party logistics and upcycling services. Revenue declined 4.6% to £498.7m in FY2025 (from £525.7m in FY2024), and pre-tax losses widened from £38.1m to £69.6m, prompting a November 2025 restructuring programme, CEO transition to Rob Barclay in April 2026, and board-level shareholder pressure from activist First Seagull AS (10.05%).

Name

Headlam Group plc

Legal name

Headlam Group plc

Website

https://headlam.com

Company type

Public

Founded year

1993

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Headlam Group plc is Europe's largest B2B floorcoverings distributor, sourcing carpet, vinyl, rugs, tiles, and wallcoverings from global suppliers and selling to UK independent and multiple retailers, contractors, and house builders via 18 national distribution hubs, trade counters, and next-day delivery under the Mercado brand.

Ownership category

akta.pro rank

Product category

Floorcovering Distribution

NAICS

Furniture Merchant Wholesalers (42321)

SIC

Wholesale-Furniture & Home Furnishings (5020)

akta.pro primary industry

Flooring (Carpet, Tile, Wood, Laminate) Distribution (CRAOAFAE)

Keywords

• Floorcovering distribution
• Commercial flooring products
• Carpet and vinyl supply
• Trade distribution services
• Flooring logistics services

Headquarters

HQ city

Coleshill

HQ country

United Kingdom

HQ region

Europe

Offices10 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Supply Chain, Personnel, Operations, Infrastructure, Marketing or Sales, Technology or R&D

Revenue model

1. Floorcovering Distribution: Distribution of floorcoverings (carpet, vinyl, rugs, tiles, wallcoverings) from manufacturers to trade customers including retailers and contractors. Revenue generated through product margin and distribution fees.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels5 records

Core offering

Headlam Group plc operates as Europe's largest distributor of floorcoverings, supplying carpet, vinyl, rugs, tiles, and wallcoverings from manufacturers to trade customers including independent retailers, multiple retailers, contractors, and house builders. The business operates through a nationwide network of 18 national distribution hubs and regional distribution centres, providing next-day delivery service and consolidated trading under the Mercado brand.

Product overview

Headlam Group plc is Europe's largest floorcoverings distributor, operating as a distribution channel between suppliers and trade customers. The company provides the broadest product range of floorcoverings supported by comprehensive customer service and next-day delivery throughout the UK. The portfolio consists of multiple acquired trading businesses (Garrod Bros, Rackhams, Ashmount, CECO Flooring, Dersimo BV, Telenzo, Supertex, Melrose Interiors, PD Pattern Books, 3D Flooring Supplies) that operate under their own trade brands while being supported by Headlam's management team, distribution network, and centralised financial resources. The company also offers own-brand products including SpringBond eco-friendly underlay made from recycled plastics and the [RE]lay recycled rugs brand. In 2024, the company consolidated 32 of its local trading businesses under the Mercado brand. Services include nationwide trade counters and next-day delivery.

Differentiator

Problem solved

Functional benefit

Products and services

• Floorcovering Distribution Services
• Trade Counters
• SpringBond Eco-Friendly Underlay
• [RE]lay Recycled Rugs Brand
• Mercado Consolidated Trading Brand
• Melrose Interiors Rug Manufacturing and Distribution
• CECO Flooring and Wallcovering Distribution
• Dersimo BV Floorcoverings Distribution

Quantifiable outcome

• Over 1 million plastic bottles recycled through SpringBond underlay sales
• +1 more outcomes

Named customers6 records

Segments6 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Six partnerships are on record, tiered core and minor.

• TexfeltcoreStrategic or Co-development Partner · 1 April 2019Partnership with Texfelt, a world-leader in eco-engineered carpet underlays based in Yorkshire, for manufacturing of SpringBond underlay from recycled plastic bottles. Texfelt is a partner of non-profit organisation Plastic Oceans UK.
• Plastic Oceans UKminorStrategic or Co-development Partner · 1 April 2019Non-profit organisation addressing plastic pollution. Texfelt is a partner of Plastic Oceans UK for the SpringBond eco-friendly carpet underlay product line.
• Track Record GlobalcoreStrategic or Co-development PartnerPartnership for due diligence on timber supply chain to ensure suppliers are responsibly sourcing timber. TRG has comprehensive technical knowledge of legislative compliance requirements including UKTR, EUTR, EUDR and UK Environment Act.
• HM Revenue & Customs (HMRC)coreOthersHeadlam maintains open and honest relationship with HMRC based on collaboration and integrity. HMRC has appointed a Customer Compliance Manager (CCM) for the company. Regular meetings held at least every twelve months.
• Melrose Interiors LtdcoreOEM/ Whitelabel/ Licensing PartnerAcquired January 2023. Specialist manufacturer, importer and distributor of rugs. Largest independent supplier to UK online rug industry with operations in third-party logistics, upcycling, recycling, and pattern book department.
• 3D Flooring Supplies LtdminorOEM/ Whitelabel/ Licensing PartnerAcquired April 2026 for £1.38 million. Commercial flooring distributor operating in Swansea, Cardiff, and Taunton, serving contractors across South Wales and South West of England.

Scale indicators14 records

Recent moves6 records

Expansion highlights5 records

Broad incumbents

• Kingfisher plc: Kingfisher owns B&Q and Screwfix in the UK, retailing home improvement products including flooring to both consumers and trade customers. Indirectly comparable on the floorcoverings category and the multiple-retailer and trade customer dynamics, though operating a retail rather than pure distribution model.
• Travis Perkins plc: Travis Perkins is the UK's largest builders' merchant, distributing a broad range of building materials including flooring to trade customers. While much larger and broader in category mix, it shares the B2B trade distribution model and overlapping contractor/house builder customer base.
• Victoria plc: Victoria plc is a UK-listed flooring manufacturer and distributor with brands across carpets, underlay, and artificial grass. Comparable on product category (floorcoverings) and partial overlap on distribution, though primarily manufacturing-led rather than pure distribution.
• Howden Joinery Group plc: Howden Joinery is the UK's largest kitchen and joinery products distributor, supplying trade customers through a depot network. Comparable UK trade distribution model with depots serving small builders and contractors, though focused on kitchens rather than flooring.
• Grafton Group plc: Grafton is an international distributor of building materials, plumbing, and DIY products operating across the UK, Ireland, the Nordics, and the Netherlands. Comparable distribution model and trade customer focus, though broader in category and geographic spread.
• Saint-Gobain plc: Saint-Gobain is a global building materials distributor and manufacturer with significant UK presence in interior solutions including flooring. Overlap with Headlam on the contractor/specification-led customer base, though much larger and broader in product portfolio.
• SIG plc: SIG is a UK-listed specialist distributor of building products including insulation, roofing, and interior fit-out products. Comparable as a trade-focused building products distributor serving contractors and commercial customers, though with a different product mix.

Others

• Bunzl plc: Bunzl is a UK-listed specialist distribution and outsourcing group operating across cleaning, hygiene, and safety products in many markets. Adjacent rather than directly comparable, but a useful proxy for UK-listed specialist distribution business models and valuation dynamics.

Emerging players

• Brickability Group plc: Brickability distributes bricks, roofing, and building products to UK house builders and contractors. Comparable in serving the UK house builder and contractor customer base that Headlam targets, though focused on structural envelope products rather than interior finishes.

Direct peers

• Likewise Group plc: Likewise Group is the most direct UK competitor — a distributor of floorcoverings and wallcoverings to independent retailers, contractors, and house builders. Closely aligned product range, customer segments, and B2B distribution model make it the single most comparable peer to Headlam.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/headlamgroup
• Facebookfacebook.com/headlamfloorcoverings
• LinkedInlinkedin.com/company/headlam

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Subsidiaries12 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A13 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Headlam Group plc