Resilient Halstead mulls bonus dividend

COMMERCIAL flooring manufacturer James Halstead is continuing to defy a “challenging climate” and perform strongly.

The listed company based at Radcliffe, Greater Manchester is considering rewarding its investors with a special dividend, chairman Geoffrey Halstead said.

In an update at the group’s annual meeting, five months into its new financial year, Mr Halstead said UK flooring sales are ahead of last year, while the picture in many markets is positive too.

“The greater part of our business trades globally and overseas we continue to achieve record sales in some key territories whilst others, most notably Australia, are trading below last year. It is apparent in several markets that large infrastructure projects are progressing but at a slower pace and with frequent delays,” he said.

Despite such softer demand, the company is benefiting from lower raw material prices and more sales of higher value and margin product.

Mr Halstead said: “We are on track to surpass the comparative profit of last half year.I stress that market conditions are difficult and though we have grown over the last few years in difficult conditions this year will, in our view, continue to be tough.

“Despite the prevailing market conditions our cash balances continue to grow and the board will consider the payment of another special dividend which would, if approved, be paid in the new tax year.”