REG - James Halstead PLC - Trading Update

James HalsteadAnnouncement

01/08/2023 07:00

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RNS Number : 7384H  James Halstead PLC  01 August 2023

 

1 August 2023

 

 

JAMES HALSTEAD PLC

(the "Company")

Trading Update

James Halstead plc, the commercial flooring manufacturer and international
distributor, is providing the following trading update ahead of its results
for the year ended 30 June 2023.

 

The Company's market expectations for the full year remain unchanged.

 

2023 was a year of contrast, with the earlier months of the financial year
having faced escalating energy costs, severe difficulties as a result of the
lack of timely availability of international shipping and increased
transportation costs. However, the latter months of the year were much more
positive with the easing of electricity costs and a great improvement in
shipping and transportation costs.

 

Sales demand has, on the whole, proved positive with the UK, the Americas,
Australia, New Zealand and Malaysia all reporting increased demand, although
Central Europe sales were lower than last year. Also positive for the year,
gross margins improved for the reasons already noted and were helped by a
swing in the mix of sales to pure commercial ranges as opposed to light
commercial/heavy domestic. The core focus of our flooring ranges in
healthcare, education and retail infrastructure, rather than private
residential, remains a key benefit to our business model.

 

In March 2023, the UK finalised an agreement to join the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP).  The agreement
sees the UK joining the CPTPP, whose membership consists of Australia, Canada,
Japan, Mexico, New Zealand, Singapore, Brunei, Chile, Malaysia, Peru and
Vietnam. Following the agreement, the UK government estimates that over 99 per
cent of UK exports to the bloc will be eligible for zero tariffs. James
Halstead exports various product lines to 10 of the 11 CPTPP member countries
(the exception being Brunei), representing an estimated c.8% of its global
revenue, where import tariffs range between 5% - 20%. This is good news for
the competiveness of our products in these markets.

 

Stock levels that were strategically raised last year are now at much lower
levels and our cash balances are robust and ahead of comparatives at 30 June
2022 and 31 December 2022, even though record levels of dividend and taxation
have been paid out during the year.

 

The Company expects to announce its results for the year ended 30 June 2023 on
2 October 2023.

 Enquiries:

 James Halstead plc                                  Tel: 0161 767 2500
 Mark Halstead, Chief Executive
 Gordon Oliver, Finance Director

 Hudson Sandler                                      Tel: 020 7796 4133
 Nick Lyon / Nick Moore

 Panmure Gordon (Nomad and Joint Broker)             Tel: 020 7886 2500
 Dominic Morley

 WH Ireland (Joint Broker)                           Tel: 020 7220 1666

 Ben Thorne / Chris Hardie

 

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