Record profits at James Halstead

FLOORING firm James Halstead today shrugged off soaring energy and raw material costs to reveal record profits.

The Radcliffe-based group said its huge geographical spread, which has seen record revenues in the UK, Germany, Mexico, Finland and Trinidad as well as its broad base of products and significant cash reserves puts it in an excellent position for future expansion.

In the 12 months to June 30, pre-tax profits at the firm, which supplies commercial flooring for everything from army ktichens to football stadiums and art galleries, were up 27% to £29.9m from £23.5m last time.

Revenue over the same period was up 15.7% to £158.7m, and it was good news for shareholders as James Halstead upped its final dividend by 28.9% to 14.5p per share.

Chief executive Mark Halstead said in the UK, which accounts for 42.5% of total sales, there has been little evidence of a slowdown in business as a result of the group’s dominant position and focus on the refurbishment market which has largely been unaffected by the downturn in the commercial sector.

James Halstead’s European business has had a record year, while turnover in the Asian and Far East division is up 34%.

Notable contracts this year include the new Istanbul Airport in Turkey, Puma footwear stores in Chile, schools in Qatar and Mumbai, and closer to home, Bolton Children’s Hospital and Bury Town Market.

Mr Halstead said: “I believe this is a very commendable performance as our strategy to focus on shareholder value, as delivered by solid bottom line performance, continues.

“Despite adverse raw material and energy cost increases, we maintained the gross margin with our premium products delivering record turnover on the back of strong sales representation and initiatives.

“Conditions remain challenging but notwithstanding the uncertain economic backdrop, I look forward with confidence to building on this year’s success.”