Strong Halstead plans higher half-year divi
COMMERCIAL flooring company James Halstead expects to increase its interim dividend despite the tough trading conditions.
The Greater Manchester-based business said it could “weather any challenges” because export sales are growing, energy costs are decreasing and its public sector work is still robust.
In a trading statement ahead of today’s annual meeting chairman Geoffrey Halstead said like-for-like sales were up in the first five months of the trading year. The business has been helped by the softening of raw material prices and the weaker pound.
The decline of sterling has improved export margins although Mr Halstead said there were, “significant localised offsets” from imported materials and finished products.
He added: “As far as the current position is concerned I can only be satisfied with progress and I fully expect to announce an increased dividend at the interim stage, setting yet another record.”
The Radcliffe-based group has a huge geographical spread. It earns around 42% of revenue from the UK but also works in Europe, the Middle East, South America and the Caribbean.
In the 12 months to June 30, pre-tax profits at the firm, which supplies commercial flooring for everything from army kitchens to football stadiums and art galleries, were up 27% to £29.9m. Revenue was up 15.7% to £158.7m. The final dividend rose 28.9% to 14.5p per share.
Recent contracts 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.
