RNS Number : 7011Y
James Halstead PLC
31 March 2026
31 March 2026
JAMES HALSTEAD PLC
("James Halstead or the "Company")
INTERIM RESULTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2025
Solid H1 trading and despite challenging markets, our margins have remained strong. A record interim dividend has been declared
James Halstead plc, the AIM listed manufacturer and international distributor of floor coverings, announces its results for the six months ended 31 December 2025.
Financial highlights
· Revenue at £127.2 million (2024: £130.1 million)
· Operating profit at £23.6 million (2024: £27.1 million)
· Pre-tax profit at £24.7 million (2024: £28.5 million)
· Basic earnings per ordinary share 4.4p (2024: 5.0p)
· Interim dividend declared of 2.85p (2024: 2.75p)
· Cash of £70.8 million (2024: £63.7 million)
Operational highlights
· Strong cash inflow from operations £36.9 million (2024: £25.3 million)
· Further gains in USA and Canadian markets; latter backed up by creation of further local stockholding capability
· Completion of capex projects at Teesside and Radcliffe sites in the UK
· Continued progress in Malaysia and South Asia
· Successful relaunch/update of Expona commercial range
The Executive Chairman, Mark Halstead, commented:
"I am pleased to report a robust balance sheet, strong cash inflow and a record interim dividend achieved against a backdrop of challenging markets. Our very long record of dividend increases continues and the markets in which we operate continue to generate demand which in turn gives us confidence in the medium term.''
Enquiries:
James Halstead:
Mark Halstead, Executive Chairman
Telephone: 0161 767 2500
Gordon Oliver, Chief Executive
David Drillingcourt, Finance Director
Hudson Sandler:
Nick Lyon / Nick Moore
Telephone: 020 7796 4133
Panmure Liberum (NOMAD & Joint Broker):
Telephone: 020 7886 2500
Edward Mansfield / Tom Scrivens Zeus (Joint Broker):
Ben Thorne / Fraser Marshall
Telephone: 0207 220 1666
NOTES TO EDITORS
James Halstead (LSE: JHD) is a UK manufacturer and global supplier of flooring for commercial and domestic purposes. It distributes their manufactured and sourced products from operations across the United Kingdom, Europe, Scandinavia, Australasia, North America and Asia, and exports directly to almost every country around the world.
The Company's brands include Polyflor, Palettone, Camaro, Karndean (Europe), Polysafe, Recofloor and Expona. James Halstead's strategy is to constantly develop its brand identity and its reputation for quality, product innovation, durability and availability, thereby enhancing and maintaining goodwill with the aim of achieving repeat business.
Over many years, the Company has adopted a policy of continual investment in both process improvement and product development to improve output efficiency and its product offering.
The Company was founded in 1915 and is headquartered in Bury, UK. It listed on the London Stock Exchange in 1948.
CHIEF EXECUTIVE'S STATEMENT
Trading for the six months ended 31 December 2025
Revenue of £127.2 million (2024: £130.1 million) was 2.2% lower than the prior year. Alongside adverse conditions that affected sales in key markets, there were slight margin reductions (44.56% v 44.75%) and overhead increases of 6.2%, largely in the UK. Consequently, operating profit of £23.6 million (2024: £27.1 million) is 12.8% behind the comparative period.
The UK represents our largest market at 44.25% of total turnover (2024: 42.7%). UK sales were 1% higher in the period despite there being a slowdown in activity in our UK commercial flooring sales. This slowdown was almost entirely in the latter 2-3 months of the trading period which was driven by certain of the larger distributors reducing purchases towards the calendar year end. Additionally, it would be fair to ascribe the group board's prudent approach to credit with customers also contributed to this effect. However, our ongoing expectations are for increased sales in the UK as spending on education, prisons, health care and aged care, particularly refurbishment, picks up.
Notwithstanding the flat sales in the UK and central Europe, we have seen certain markets perform well, notably the USA (+15%), Canada (+25%) and Africa (+41%), with the Middle East comparable with last year. However, our export market lagged the comparative by 5%, with Northern Europe and Australia/New Zealand being the weakest markets.
Taxation at 26.4% (2024: 26.3%) is broadly unchanged from the previous year. Despite cash at bank at the end of the six month period being ahead of last year, our interest receivable was lower due to lower cash balances in the first three months combined with UK deposit rates at lower levels relative to rates from the comparative period.
Our businesses and international markets
Our UK businesses are Polyflor and Riverside. Overall, it was a satisfactory trading period although stricter credit controls did affect sales in the latter two months of the trading period. This had a consequent effect of reduced variable and fixed overhead recovery which slightly depressed margins. In addition, stock holdings in Polyflor were reduced with inventory levels in this business 7% below the comparative.
Investment at our Teesside plant to replace the incinerator with a more energy efficient and environmentally friendly "scrubber" has already delivered cost savings and given the higher potential energy costs in the second half year could not have been better timed. Similarly, a significant installation of solar panels to the main production site at Polyflor in Radcliffe was completed, which are already delivering further energy cost benefits.
The core manufacturing base continues to lead in product development. Our launch, in September 2025, of Geotone QuickLay is a good example. It is a smooth, loose lay flooring solution, designed to offer quick and efficient installation to time critical projects in key market segments such as healthcare and education around the world. The product can be fitted over fresh concrete floors without the need for an additional Damp Proof Membrane. It can also be installed directly over a range of existing floor coverings which would otherwise have to be completely removed at extensive cost and significant levels of disruption. A recent example is the refurbishment of Solihull Hospital, against tight turnaround deadlines. Furthermore, the product has met the standards of the University of Stirling's Dementia Services Development Centre (DSDC) Product Accreditation, for installation in environments for designed for those living with Dementia. In summary, a very encouraging launch fully backed up with our full range of sampling and exemplary presentations to end users.
Our German and Central European businesses are operating in an economic climate characterised by material uncertainty. Nevertheless, we relaunched and updated the Expona commercial collection (Luxury Vinyl Tile - "LVT") which has already seen positive follow up with products specified in roll-out to McFit gyms, A1 Fitness and Adler fashion stores. This was one of the most successful launches of recent years.
Objectflor has a well respected market presence, and this was endorsed through the company being ranked, once again, as No 1 against its flooring competitors by BTH Heimtex, the trade magazine for floor coverings. Readers of BTH Heimtex are managers, opinion leaders and decision makers in specialist shops, interior decorators, wholesale companies and the construction industry. Our business in France, directed from Germany, supplied several prestigious contacts such as The Safran Aircraft engine factory in Châtellerault, and the Parc de jeux intérieur (Ô Park) in Castres.
Our Canadian business has seen further growth and the increased presence on the west coast is now backed up with a local stockholding capability. The growth in volume over the first six months has been across each of our major product categories which is positive as we look to expand our presence further.
Our APAC region remains subdued, especially our Australian and New Zealand businesses. Australia has suffered from higher than predicted interest rates with inflation remaining stubbornly high, and this has impacted consumer spend and refurbishment in the retail sector. As a result, our LVT sales suffered a double digit fall in volumes, the main factor for the drop in revenue. Encouraging however, sheet product volumes from our own manufactured ranges were 12% ahead of comparatives.
A new managing director has been appointed in Australia and his role will include oversight of the New Zealand business; he joined us in March 2026. Having previously worked for Polyflor Australia for 14 years, before a brief hiatus at another company, and within the flooring industry for the last 30 years, we anticipate renewed focus on the core UK manufactured ranges.
In New Zealand, the expectation was always that the sales would reduce this year due to the lower spend on social housing owing to the completion of the Kianga Ora contract. Measures were put in place to reduce our cost base and with these now in place, along with interest rates falling to their lowest level in over 3 years, we are poised to take advantage of any uplift in sales.
Notwithstanding the above, our New Zealand business has been supplying the Taranaki Base Hospital which is a "showcase" rebuild / refurbishment project led by architectural firm Warren and Mahoney. Similarly, our Australian business supplied a breadth of projects from the Gage Road Sports Bar (Perth Airport, WA), Christos Burgers (Banksia Grove, WA) and Brainy Bunch Paediatrics (Norman Park, QLD).
We are, however, pleased to report continued progress in Malaysia and South Asia. Our approach to this region is like our activities in the rest of the world. Looking at our approach in more detail, we have been active at trade exhibitions in Malaysia and in the Philippines (the latter went well and a follow-up event took place at Davao in February 2026). In conjunction with this we ran training days for government facilities managers on the details of flooring specifications and maintenance. There have been a myriad of hospital project successes and an increasing number of hotel projects such as the Shangri La and St Regis hotels in Singapore. The team engage with public works departments and with regional architects such as Architects 49 in Bangkok and Hirsch Bedner Associates across the South East Asian region.
North Asia, notably China, Hong Kong and South Korea, remain problematic and we are yet to see any large projects materialising because of central government restrictions. We have redirected the sales management of this region back under the supervision of the Polyflor UK export department to prioritise project specifications.
In the rest of the world, revenue performance has been generally more positive (as noted above) with North America showing strong growth.
Working capital, cash flow earnings per share and dividend
Since the start of the financial year, we have distributed £25.2 million in dividends and paid corporation taxes of £6.7 million. In addition, capital expenditure over the period was £2.2 million, mainly focused on the energy saving initiatives noted above.
The cash inflow from operations at £36.9 million (2024: £25.3 million) is impressive, a 45.8% increase compared to last year, the improvement , in part, due to a large decrease in trade receivables as our businesses focused on tighter credit control and decreased inventories.
Our cash position stands at £70.8 million as of 31 December 2025 (2024: £63.7 million). Our robust balance sheet continues to be a key strength.
Having regard to our cash and profitability, we have decided to declare an interim dividend of 2.85p per share (2024: 2.75p), an increase of 3.6%. This dividend will be payable on 5 June 2026 to those shareholders on the register as of 8 May 2026.
Current trading and outlook
It should be noted that UK sales, noticeably reduced in the weeks leading up to the 31 December 2025, have in the first two months of 2026 picked up with a greater perception of improved conditions. It is clear, to us, that backlogs of repair and refurbishment in key sectors remain.
However, once again issues in the Middle East are causing head winds in respect of raw material, energy and transportation costs which, it must be noted, affect our competitors at least as badly. Inevitably this will have inflationary effects.
The fundamentals of our business, product ranges and routes to market are well established and the markets in which we operate continue to generate the demand that, despite short term challenges, gives us confidence in the medium term.
Gordon Oliver
Chief Executive
31 March 2025
Consolidated Income Statement
for the half-year ended 31 December 2025
Half-year ended 31.12.25 £'000
Half-year ended 31.12.24 £'000
Year ended 30.06.25 £'000
Revenue
127,197
130,090
261,967
Operating profit
23,594
27,065
52,821
Finance income
1,232
1,532
2,584
Finance cost
(156)
(134)
(268)
Profit before income tax
24,670
28,463
55,137
Income tax expense
(6,516)
(7,492)
(14,525)
Profit for the period
18,154
20,971
40,612
Earnings per ordinary share of 5p:
- basic
4.4p
5.0p
9.7p
- diluted
4.4p
5.0p
9.7p
All amounts relate to continuing operations.
Details of dividends paid and declared/proposed are given in note 4.
Consolidated Statement of Comprehensive Income
for the half-year ended 31 December 2025
Half-year ended 31.12.25 £'000
Half-year ended 31.12.24 £'000
Year ended 30.06.25 £'000
Profit for the period
18,154
20,971
40,612
Other comprehensive income net of tax:
Remeasurement of the net defined benefit asset
1,892
(622)
20
Foreign currency translation differences
783
(2,032)
(2,092)
Fair value movements on hedging instruments
1,421
1,055
(1,396)
Other comprehensive income for the period net of tax
4,096
(1,599)
(3,468)
Total comprehensive income for the period
22,250
19,372
37,144
Attributable to equity holders of the parent
22,250
19,372
37,144
Consolidated Balance Sheet
as at 31 December 2025
Half-year ended 31.12.25 £'000
Half-year ended 31.12.24 £'000
Year ended 30.06.25 £'000
Non-current assets
Intangible assets
3,232
3,232
3,232
Property, plant and equipment
34,934
35,370
34,730
Right of use assets
8,579
5,674
4,420
Retirement benefit asset
3,348
-
555
Deferred tax
1,503
221
1,585
51,596
44,497
44,522
Current assets
Inventories
78,074
87,374
80,401
Trade and other receivables
29,976
33,995
45,238
Derivative financial instruments
189
2,117
193
Current tax Cash and cash equivalents
2,109 70,764
2,124 63,683
1,527 68,369
181,112
189,293
195,728
Total assets
232,708
233,790
240,250
Current liabilities
Trade and other payables
40,380
49,967
48,096
Derivative financial instruments
298
83
1,936
Lease liabilities
3,194
2,704
1,940
43,872
52,754
51,972
Non-current liabilities
Retirement benefit liability
-
561
-
Other payables
-
339
326
Lease liabilities
5,663
3,115
2,747
Preference shares
200
200
200
Deferred tax
3,918
1,155
3,006
9,781
5,370
6,279
Total liabilities
53,653
58,124
58,251
Net assets
179,055
175,666
181,999
Equity
Equity share capital
20,839
20,839
20,839
Equity share capital (B shares)
160
160
160
20,999
20,999
20,999
Share premium account
55
55
55
Currency translation reserve
2,537
1,814
1,754
Hedging reserve
359
1,389
(1,062)
Retained earnings
155,105
151,409
160,253
Total equity attributable to shareholders of the parent
179,055
175,666
181,999
Consolidated Cash Flow Statement
for the half-year ended 31 December 2025
Half-year ended 31.12.25 £'000
Half-year ended 31.12.24 £'000
Year ended 30.06.25 £'000
Profit for the period
18,154
20,971
40,612
Income tax expense
6,516
7,492
14,525
Profit before income tax
24,670
28,463
55,137
Finance cost
156
134
268
Finance income
(1,232)
(1,532)
(2,584)
Operating profit
23,594
27,065
52,821
Depreciation of property, plant & equipment
2,107
1,883
3,987
Depreciation of right of use assets
1,650
1,406
3,542
Profit on sale of property, plant and equipment
(9)
(79)
(75)
Defined benefit pension scheme employer contributions paid
(250)
(250)
(500)
Change in fair value of financial instruments
(75)
(65)
46
Share based payments
22
24
47
Decrease /(increase) in inventories
3,268
(6,889)
180
Decrease /(increase) in trade and other receivables
15,995
9,699
(1,794)
(Decrease) in trade and other payables
(9,370)
(7,491)
(8,240)
Cash inflow from operations
36,932
25,303
50,014
Taxation paid
(6,708)
(8,162)
(14,294)
Cash inflow from operating activities
30,224
17,141
35,720
Interest received
1,212
1,528
2,570
Purchase of property, plant and equipment
(2,185)
(2,596)
(3,881)
Proceeds from disposal of property, plant and equipment
33
132
143
Cash outflow from investing activities
(940)
(936)
(1,168)
Interest paid
(9)
(7)
(29)
Lease interest paid
(147)
(127)
(239)
Lease capital paid
(1,641)
(1,422)
(3,430)
Equity dividends paid
(25,216)
(25,007)
(36,469)
Cash outflow from financing activities
(27,013)
(26,563)
(40,167)
Net increase /(decrease) in cash and cash equivalents
2,271
(10,358)
(5,615)
Effect of exchange differences on cash and cash equivalents
124
(241)
(298)
Cash and cash equivalents at start of period
68,369
74,282
74,282
Cash and cash equivalents at end of period
70,764
63,683
68,369
Notes to the Interim Results
for the half-year ended 31 December 2025
1.
Basis of preparation
The interim financial statements are unaudited and do not constitute statutory accounts as defined within the Companies Act 2006. The principal accounting policies applied in the preparation of the consolidated interim statements are those set out in the annual report and accounts for the year ended 30 June 2025. The figures for the year ended 30 June 2025 are an abridged statement of the group audited accounts for that year. The financial statements for the year ended 30 June 2025 were audited and have been delivered to the Registrar of Companies. As is permitted by the AIM rules, the directors have not adopted the requirements of IAS 34 'Interim Financial Reporting' in preparing the interim financial statements. Accordingly, the interim financial statements are not in full compliance with IFRS.
2.
Taxation
Income tax has been provided at the rate of 26.4% (2024: 26.3%).
3.
Earnings per share
Half-year ended 31.12.25 £'000
Half-year ended 31.12.24 £'000
Year ended 30.06.25 £'000
Profit for the period
18,154
20,971
40,612
Weighted average number of shares in issue
416,786,436
416,786,436
416,786,436
Dilution effect of outstanding share options
-
-
-
Diluted weighted average number shares
416,786,436
416,786,436
416,786,436
Basic earnings per 5p ordinary share
4.4p
5.0p
9.7p
Diluted earnings per 5p ordinary share
4.4p
5.0p
9.7p
4.
Dividends
Half-year ended 31.12.25 £'000
Half-year ended 31.12.24 £'000
Year ended 30.06.25 £'000
Equity dividends paid:
Final dividend for the year ended 30 June 2024
-
25,007
25,007
Interim dividend for the year ended 30 June 2025
-
-
11,462
Final dividend for the year ended 30 June 2025
25,216
-
-
25,216
25,007
36,469
Equity dividends declared/proposed after the end of the period
Interim dividend
11,868
11,462
-
Final dividend
-
-
25,216
Equity dividends per share, paid and declared/proposed are as follows:
6.00p final dividend for the year ended 30 June 2024, paid on 13 December 2024 2.75p interim dividend for the year ended 30 June 2025, paid on 6 June 2025 6.05p final dividend for the year ended 30 June 2025, paid on 12 December 2025 2.85p interim dividend for the year ended 30 June 2026, payable on 5 June 2026, to those shareholders on the register at 8 May 2026
6.
Copies of the interim results
Copies of the interim results have been sent to shareholders who requested them. Further copies can be obtained from the company's registered office, Beechfield, Hollinhurst Road, Radcliffe, Manchester, M26 1JN and on the company's website at www.jameshalstead.com.
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