Special divi as Halstead profits hit half-year high

INTERNATIONAL flooring manufacturer James Halstead is proposing a special dividend after notching up another period of record earnings.

The Bury-based firm said pre-tax profits increased 2.2% to £21.6m in the six months to the end of December.

With net cash of cash of £51.9m it is paying an interim dividend of 2.75p, up 10%, and proposing a special dividend of 7p.

However, turnover slipped 7% to £109m which the company said was down to a 3% fall in flooring sales, changes in exchange rates, and the closure of its motorcycle accessories business, Phoenix Distribution.

James Halstead said UK flooring sales increased by 3% but overseas revenue declined with Australian market experiencing a 15% drop as infrastructure spending slowed. Income from the Middle East was also affected by political unrest.

France, Scandinavia, Canada and South America all reported increases in turnover. The company gave a generally positive outlook, but warned it was not immune to the economic slowdown and flagged slower full-year growth as a consequence.

Chief executive mark Halstead said: “Having, once again, achieved record profits and with a bulwark of a strong balance sheet it is pleasing to announce another special dividend.

“But it is clear market conditions are not easy, it has been difficult for many companies since the financial crisis of 2008 affected us all. We have since that time raised turnover by 54% and profit by 193% which is clearly testimony to our strength.”