Sterling weakness aids floor coverings firm’s record year
Greater Manchester-based international floor coverings distributor James Halstead is celebrating record turnover, profits and dividends to its shareholders.
The listed company, headquartered in the Bury satellite town of Radcliffe, enjoyed a boost to export activity thanks to the general weakness of Sterling aiding competitiveness and margins.
Revenue for the year ended June 30 climbed 6.5% to £240m (2016: £226.1m) and pre-tax profits went up 2.5% to £46.6m (£45.5m).
Earning per 5p ordinary share were 17.6p, up 3.5% on last year and the final dividend per ordinary share has been proposed of 9.25p (2016: 8.5p) – up 8.8%.
The company has £52.5m in cash (2016: £44.1m).
Chief executive Mark Halstead: “Despite the shadow of uncertainty that “Brexit “has cast and in a year of clearly tougher than normal trading conditions it’s satisfying to report another year of record profits.”
Chairman Geoffrey Halstead said: “It is gratifying to report turnover of £240m – a record.
“Just as satisfying to report as the sales is the record profit before tax at £46.6m.
“There was clearly a boost to our export activities given the general weakness of sterling aiding competitiveness and margins.
“This was tempered by a 5.2% fall in UK sales and turmoil in the supply chain of raw materials.
“The drop in UK sales is entirely accounted for by de-stocking at two of the larger distributor chains.
“We are satisfied that the actual purchases of Polyflor ranges by end users increased and we are encouraged that other independent distributors increased sales.”
Following the announcement of the results, it was also announced the chairman would stand down from his post at the upcoming annual meeting on December 1.
Geoffrey Halstead has been a director of the company for 55 years, the last 17 as chairman. In the light of this achievement, the company said, the board has extended to him the honorary title of president.
In addition berhard Lotz has notified his intention to retire at the upcoming AGM after nine years on the board and 21 years with the group having previously been the managing director of Objectflor, Halstead’s German subsidiary.
Anthony Wild, who has held the role of senior independent director since 2001, will step up to the position of chairman and Stephen Hall, a director since 2012, will succeed Wild as the senior independent sirector.
