Fall in profit, but a rise in turnover at James Halstead

The manufacturer and international distributor of commercial floor coverings has seen slight downturns in its operating and pre-tax profits, but a small increase in turnover.

Its interim half-year results to December 31 show operating profit was £20.6 million, a 3.1 per cent decrease, while pre-tax profit fell by four per cent to £20.4 million.

However, there was a slight rise in turnover, up from £109.0 million to £110.9 million, while Halstead’s interim dividend increased to a record 3.0p — a rise of 9.1 per cent.

Mark Halstead, chief executive of the business whose flagship Polyflor manufacturing plant is located in Radcliffe New Road, Whitefield, said: “It is clear that market conditions are not easy, but our strong market position remains and our increased dividend reflect our continued confidence.”

Chairman Geoffrey Halstead commented: “Although disappointing to report a fall in profit, I am nevertheless encouraged by the progress we have made against the backdrop of a very competitive marketplace, especially in Europe.”

Growth markets include Spain (18 per cent), Canada (10 per cent), France (nine per cent), South America (five per cent). In the UK, sales increased by more than five per cent.

In January and February, the company exhibited in Germany and China and the diversity of its end users is illustrated by the fact its flooring has been installed at the Mississippi Crime Laboratory in Jackson, USA, the Sberbank in Moscow, and Boryspil Airport in the Ukraine.

Mr Halstead said that, although the first six months of the firm’s financial year have been “challenging,” trading between January and March is showing growth of between seven and eight per cent.

On the outlook for the future, the chairman concluded: “In terms of the bottom line, it will be difficult to exceed last year’s profit but I remain cautiously optimistic that we will not fall below that mark.”