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Collapse of German rival boosts James Halstead
Interim turnover at James Halstead reached record levels, the commercial flooring group said on Monday, while the collapse of a key German rival has left it on course for a positive close to the year.
In a pre-close trading statement ahead of its interim results, the AIM-listed group said revenues had risen 5% in the six months to 31 December to a "record level". Profits were in line with expectations and in excess of the comparative half year.
Halstead added that turnover had benefited from a strong December, and the outlook was now improved following developments in the international market.
At the beginning of December, outgoing chairman Geoffrey Halstead - who had held the role for 17 years - said the company was experiencing "competitive headwinds" in its central European markets and in Germany specifically.
At the start of January, however, an unnamed German manufacturer went into administration and a facility will now close as a result. This is possibly a local subsidiary of Basler, which was reported in June to have applied for 'self-administration'.
"This closure is expected to take place imminently and should ameliorate the pricing pressures we have been experiencing," the company said.
"Product development continues, and we have refreshed some of our key ranges and presented them to the trade in recent weeks. Given the positive feedback, our confidence for the full year is unchanged and remains positive."