REG - James Halstead PLC - Interim Results
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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 Half-year Year
ended ended ended
31.12.25 31.12.24 30.06.25
£'000 £'000 £'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 Half-year Year
ended ended ended
31.12.25 31.12.24 30.06.25
£'000 £'000 £'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 (3,468)
4,096 (1,599)
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 Half-year Year
ended ended ended
31.12.25 31.12.24 30.06.25
£'000 £'000 £'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 2,109 2,124 1,527
Cash and cash equivalents 70,764 63,683 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 Half-year Year
ended ended ended
31.12.25 31.12.24 30.06.25
£'000 £'000 £'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 (500)
(250) (250)
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
(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 Half-year Year
ended ended ended
31.12.25 31.12.24 30.06.25
£'000 £'000 £'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 Half-year Year
ended ended ended
31.12.25 31.12.24 30.06.25
£'000 £'000 £'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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