Headlam (see our previous post here ) traded 2mn shares through a series of ‘off book’ trades on 19th October at £2.78. This is 10x its average daily and almost 2.5% of the shares outstanding in the company. The amount transacted on the day is under the 3% requirement for disclosure on the London Stock Exchange. We waited to see if there was a disclosure. Given no disclosure has been provided at this stage, we assume this represents a new shareholder on the register and would put them just outside the largest 10 shareholders (Fidelity being the largest at 7.8%).
As a reminder, we believe that Headlam has 100% upside and can return to its January highs of £5.60 on a 2 year view. It is the leading carpet and flooring distributor in the UK and a very high quality business. The FTSE 350 Housing & Construction index is now almost 30% off its lows of March and only 5% down where it started the year. If Headlam returns to its starting level on the year it would be +95%.
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