Extra dividend for Halstead investors
FLOORING firm James Halstead is to pay shareholders a special dividend in January to reflect the group’s strong trading performance and its significant cash reserves.
In a statement issued ahead of the Bury firm’s annual general meeting chairman Geoffrey Halstead said shareholders would receive 15p a share. It will be the fourth special dividend the firm has paid in five years, a period in which sales increased by 50% and profits grew by 250%.
Mr Halstead said the firm was still “doing well” despite tougher conditions. The business is trading ahead of last year and export markets are more active.
Halstead, which reported sales of £169m in the year to June 30, has substantial cash reserves of around £30m. Since interest rates have been slashed it has struggled to gain a return from the capital.
Mr Halstead said rates on deposits were negligible, “though it is clear the negative effect of ‘lost’ interest is being offset by the current trading performance”.
He added: “In summary we are doing well and although it is still too early in the prevailing climate to make firm predictions for the outcome for the full year I remain confident of reporting further progress.”
The board is also considering bringing forward the payment of its interim dividend from May to March. A further announcement is expected in January.
The group has a huge geographical spread, earning around 42% of revenue from the UK but it also works in Europe, the Middle East, South America and the Caribbean.
