1st Aug 2023 10:58
(Alliance News) - James Halstead PLC on Tuesday said a mixed financial year ended strongly, as it set out a promising outlook, believing a new UK trade deal with the likes of Australia, Canada and Japan will be boost its competitiveness.
The flooring manufacturer said it ended the year to June 30 in a "much more positive" fashion than it started it. The early months of the financial year saw James Halstead suffer from rising energy costs and international shipping woes.
Those worries eased in the latter months of the financial year.
"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," James Halstead said.
"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."
James Halstead noted that the UK claimed a post-Brexit trading win earlier this year, joining 11 other nations in an Asia-Pacific trade partnership.
The UK is now part of the Comprehensive & Progressive Agreement for Trans-Pacific Partnership, alongside Australia, Canada, Japan, Mexico, New Zealand, Singapore, Brunei, Chile, Malaysia, Peru and Vietnam.
"Following the agreement, the UK government estimates that over 99% 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 [around] 8% of its global revenue, where import tariffs range between 5%-20%. This is good news for the competitiveness of our products in these markets," James Halstead added.
James Halstead shares rose 0.5% to 209.00 pence each in London on Tuesday morning.
It reports annual results on October 2.
By Eric Cunha, Alliance News news editor
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