31st Jan 2025 09:11
(Alliance News) - James Halstead PLC on Friday said half-year sales were slightly lower year-on-year reflecting lower confidence among customers in its core UK market.
In a trading update, the Manchester-based commercial flooring manufacturer and distributor said overall sales in the half-year that ended December 31 were just below last year, with profit before tax comparable to a year ago.
For the six months that ended December 31, 2023, James Halstead had reported revenue of GBP136.5 million and pretax profit of GBP27.4 million.
James Halstead said its core UK market has experienced more caution following the incoming government's first budget and the subsequent changes to living wage and national insurance.
"Our UK sales in the first six months are in line with the comparative but have been constrained, in part, as a result of lower confidence leading to customers revising their capital spend and deferring renewal. Additionally, the six-month period has also seen a degree of destocking in our UK distributor customers," the firm explained.
Overseas, the picture is brighter. Whilst Australia and New Zealand sales have declined, turnover in the Americas, the Middle East and Mediterranean is progressing, the company said.
Overall, expectations for the full year to June 30 are that pretax profit will be in line with market expectations.
Panmure Liberum expects full-year pretax profit of GBP57.4 million, modest growth from GBP56.2 million reported in the year to June 30, 2024.
James Halstead expects to announce its interim results on March 31.
Shares were 4.2% lower at 167.25 pence each in London on Friday morning.
By Jeremy Cutler, Alliance News reporter
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