James Halstead drives annual profits and reveals change in leadership
Annual profits have improved at James Halstead, the Manchester-based flooring specialist, despite a reduction in revenues during the year to June 30, 2024.
The group also revealed a boardroom change with a new chief executive set to take over.
Its figures showed turnover fell by 9.4% to £274.9m, however, pre-tax profits jumped by 7.9% to £56.9m.
Once again, the group has increased its final dividend payment to shareholders, which rises by 4.3% to 6p per share.
By the year end cash stood at £74.3m, compared with £63.2m in the previous year.
The group reported continued investment in its operations, including a £350,000 update at its Riverside site, a £200,000 improvement at Royton, while preparatory work has started at Radcliffe for a £400,000 investment in solar panels.
During the reporting period the group also said it had secured significant new business in the UAE, Colombia, Iceland, Italy, Mexico, Poland, Greece and South Africa.
It also affirmed that its prospects continue to look positive, giving the board confidence in the outturn for the financial year ahead.
Chief executive, Mark Halstead, said: “FY24 has been a largely positive year against the challenging economic backdrop with frustrations and further disruption to global trade routes.
“Our proposed dividend continues our unbroken chain of dividend payment increases from 1974.
“We have continued to invest in process improvement as well as product development to improve output efficiency and our product offering. This has been substantial and I am pleased to say has already led to improved productivity and margin improvement.”
He added: “During the year we have secured many prestigious projects around the world, demonstrating the continued demand for our high quality offering on a global scale.
“We look ahead to FY25 in good stead and after delivering another year of profits growth.”
The group also announced boardroom changes today which will see chairman Anthony Wild stand down at the upcoming annual general meeting to be held on December 6, 2024. He has been a director of the company for 23 years, the last seven as chairman.
The board proposes that chief executive Mark Halstead will step up to the position of executive chairman and current finance director, and a director since 1999, Gordon Oliver, will succeed him as chief executive.
David Drillingcourt, who joined the board in January 2024, will assume the role of finance director.
With regard to the composition of the board this will result in three executive directors and three non-executive directors.
Mark Halstead said: ”On behalf of the board I would like to express our appreciation of Anthony’s contribution to the successful growth of the company during his 23 years on the board.”
Adrian Kearsey, an analyst at investment bank Panmure Liberum, said Halstead has delivered a strong performance and touted the group as a Buy for investors.
He said: “Healthy performances in the Middle East and the Americas, increased productivity and ongoing cost management meant that pre-tax profits increased from £52m FY23 to £56m in FY24.
“This compares with the PL estimate of £55m. With gross margin trends remaining firm we are raising our FY25 PBT estimate from £55m to £57m (+4.1% upgrade).”