UK's James Halstead H1 revenue, profit hit by slowdown in local commercial flooring market

James Halstead

31/03/2026 07:12

Overview

UK floor coverings maker's H1 revenue fell 2.2% yr/yr amid challenging market conditions

Operating profit and pre-tax profit declined, impacted by higher overheads and margin pressure

Company declared a record interim dividend and reported higher cash inflow from operations

Outlook

Company says UK sales have picked up in early 2026 after a slowdown at end-2025

Company expects ongoing demand from repair and refurbishment backlogs in key sectors

Company warns Middle East issues are causing headwinds in raw material and energy costs

Result Drivers

UK COMMERCIAL SLOWDOWN - Co said slowdown in UK commercial flooring sales late in H1 was driven by large distributors reducing purchases and stricter credit controls

REGIONAL VARIATION - Co saw strong growth in USA (+15%), Canada (+25%) and Africa (+41%), but export markets, especially Northern Europe and Australia/New Zealand, lagged

ENERGY COST SAVINGS - Investments in energy efficiency at UK sites delivered cost savings, helping offset higher overheads

Company press release: ID:nRSe7011Ya

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
GBP 127.20 mln
H1 Net Income
GBP 18.15 mln
H1 EBIT
GBP 23.59 mln
H1 Pretax Profit
GBP 24.67 mln


Analyst Coverage

The one available analyst rating on the shares is "strong buy"

The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

Wall Street's median 12-month price target for James Halstead PLC is GBp320.00, about 168.9% above its March 30 closing price of GBp119.00

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)