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James Halstead enjoys strong growth as international market pays dividends
Commercial floor coverings distributor James Halstead announced on Tuesday that it enjoyed an increase in both revenues and profits over the six months leading to 31 December.
The AIM-traded company registered revenues of £126m, an increase of 5.4% on the same period of the previous year, and a 2% increase in pre-tax profits which rose to £23.7m across the period.
James Halstead currently holds cash at £47.5m and, reflecting this, has announced an interim dividend of 3.85p, representing an increase of 2.7%, payable on 6 June.
The company's growth over the year was driven by a strong international performance including 4.4% and 14% sales growth in Germany and France respectively.
Anthony Wild, chairman of James Halstead, said: "In addition to healthcare, our presence in retail continues to expand with global partners such as Montblanc stores (globally), Marc Dorcel stores across France, Thalia book stores across Germany and Freshii restaurants in Canada. Further examples of the breadth of applications of our flooring are the Indian Space Research Organisation (ISRO) semi-conductor laboratories, in Dehli, the Universal Church of San Paolo in Brazil and Central Bark dog hotel in Auckland."
The Manchester-based company has also commenced utilising bulk storage for raw materials in Teesside to increase the ease of sourcing raw materials from Asia, a strategy which has mitigated European shortages and led to lower raw materials prices.
"Up to 50% of our polymer requirements are sourced this way and are a hedge against pricing and exchange rate issues with European supply. In addition, we can offset customs import duty as around 25% of our exports are outside the EU customs area," said Wild.
The company stated that it has started 2018 well, experiencing a 10% increase in sales to date compared to the same point in 2017.
As of 1043 GMT, James Halstead's shares were up 4.96% at 423.00p.