31st Jul 2014 11:10
LONDON (Alliance News) - Commercial flooring manufacturer and distributor James Halstead PLC Thursday raised its guidance for the recently-ended financial year, saying that the improved trading it witnessed in the fiscal third quarter had continued through the fourth quarter.
At the end of March, James Halstead Chairman Geoffrey Halstead had predicted that it would be difficult to exceed the previous year's profit after poor trading in December weighed on its half-year results. Pretax profit for the six months to end-December fell to GBP20.4 million, from GBP21.2 million a year earlier.
In its statement Thursday, it said it now expects pretax profit for the year that ended June 30 to be above the GBP41.2 million it reported in fiscal 2013.
"In the Chairman's statement announced on 31 March 2014, it was reported that the first half year had been challenging with turnover only 1.7% ahead of the prior year comparative but that there were improved sales in the period January - March. This stronger period of trading has continued through April - June," it said in a statement.
Back in March, the company had said sales were up 7% to 8% in the fiscal third quarter.
At that time, it had also warned that the strength of sterling was weighing on its margins. However, on Thursday it said the recent strength of sterling hadn't weighed on its margins due to "offsetting factors", mainly lower raw material costs. It did note, however, that sterling's strength would affect the translation of profits made overseas.
James Halstead added that its cash balances remain healthy and it will meet expectations for a 38th year of increased dividends. The company had raised its interim dividend by 9.1% to 3.0 pence.
The company's shares were up 0.1% at 280.00 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
James Halstead