31st Mar 2023 12:46
(Alliance News) - James Halstead PLC on Friday posted lower interim profit on higher transportation, energy price and raw materials costs.
In the six months ended December 31, the Manchester-based flooring manufacturer said that revenue rose by 9.4% to GBP149.6 million from GBP136.7 million a year earlier. James Halstead noted that this is a "record level".
It said that UK sales were up by 10% year-on-year, Europe 4% up, Australasia 16% ahead and the rest of the world up by 26%. The rest of the world turnover was driven mainly by further increases in sales across the Middle East and North America, James Halstead added.
However, the company's bottom line saw a dip. Interim pretax profit fell by 8.6% to GBP23.2 million from GBP25.4 million.
James Halstead explained that its bottom line was effected by transportation costs, energy price increases and raw materials costs.
James Halstead also declared an interim dividend of 2.25 pence, unchanged year-on-year.
Looking ahead, the company said the demand for flooring for refurbishment projects across healthcare, social housing and education is significant. It added that energy costs appear to be "holding stable" as it moves into the second half of its financial year.
Chief Executive Mark Halstead said: "These last three years have seen our businesses challenged by numerous unexpected factors that have added to costs significantly and to the complexity of the simple business of designing, manufacturing and selling commercial flooring. The bottom line results show a small dip in profits at the half year but this, in the view of the board, is a creditable performance."
Shares in James Halstead were up 0.3% to 182.00 pence each in London on Friday afternoon. Over the past 12 months, the stock has dropped 21%.
By Sophie Rose, Alliance News reporter
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