REG - James Halstead PLC - Trading Update

James HalsteadAnnouncement

Tue 07:00

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RNS Number : 8873S  James Halstead PLC  29 July 2025

 

29 July 2025

 

 

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 2025.

 

The Company sells, for the most part, commercial flooring across the world and
has seen continued confidence in the segment of resilient sheet flooring but
has experienced headwinds against sales of luxury vinyl tile (LVT) principally
in Europe, the Company has however successfully managed to grow its market
share in the UK. Profit before tax is in line with expectations.

 

Sales in the UK, our largest market, have improved compared to the prior
financial year. Having reported that in the prior financial year there was a
5% decline versus the comparative, it is pleasing to note that our performance
this year has seen this decline more than fully reverse. This is despite a
degree of de-stocking by some customers, particularly those with exposure to
the UK domestic carpet market.

 

Sales volumes of LVT have increased, albeit modestly, in a market segment that
has seen a large decline in demand. Sales of Polyflor branded LVT products
have held up due to their quality and value together with our widely accepted
reputation for sustainability and environmental excellence; factors that have
helped increase our market share. LVT and sheet vinyl continue to displace
carpet sales in the UK market.

 

Notwithstanding this backdrop and solid UK performance, our internal
expectations for the UK were higher. An anticipated uplift in demand in the
education, healthcare and the prison sectors has not, yet, materialised though
sales into the aged care and affordable housing sectors are performing
satisfactorily.

 

In Europe, particularly in France and Holland, there has been muted activity
in consumer spending which has affected refurbishment demand and new store
openings in the retail sector. This has impacted LVT sales and volume declines
were further compounded by increased focus of government budgets towards
national security, diverting spending away from such areas as construction and
social housing.

 

The products we sell are still regarded as market leading but the year has
required reacting to a lower level of sales by tight cost control. In this
regard, the simple model of holding stock within our distribution chain to
supply demand is tried and tested around the globe.

 

In our Rest of World markets, sales have generally been more positive with
very good growth, especially in the Americas, the Middle East and
Mediterranean regions. Additionally, South Asia has seen the growth of recent
years continue and is 38% ahead of the comparative of last year.

 

Notwithstanding the slower sales, the Group's focus on manufacturing
efficiency and tight cost control of overheads have protected margins.

 

Operationally, there has been disruption to global trade routes and shipping
movements with the uncertainty of tariffs on sales into the USA which has
affected deliveries into many markets. However, these uncertainties have been
positive regarding the sale of our UK manufactured goods into the USA, as
customers seek alternative suppliers to replace products imported from
countries where much higher tariffs have been imposed and with continuing
uncertainly. This increased demand is despite an additional 10% duty cost to
importers of our UK products.

 

In summary, the Company anticipates that sales will be marginally below the
2024 comparative with profit slightly below last year's record levels;
although remaining within the range of market expectations. Cash generation
alongside reserves continue to underpin an ungeared balance sheet, which
remains strong.

 

The Board is confident that the prospects remain solid despite the recent
external challenges and side winds.

 

The Company expects to announce its results for the year ended 30 June 2025
towards the end of September 2025.

 

 

 

 Enquiries:

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

 David Drillingcourt, Finance Director

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

 Panmure Liberum (Nomad and Joint Broker)  Tel: 020 7886 2500
 Ed Mansfield / Tom Scrivens

 Zeus  (Joint Broker)                      Tel: 020 3829 5000

 Ben Thorne / Fraser Marshall

 

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