James Halstead's disappointing December curtails strong start

James Halstead management was encouraged by trading in the first five months of its trading year, with half-time profits at the commercial flooring manufacturer and distributor coming in at a "record" level despite a tough December.

Margin improvements across the six months ended 31 December also aided profits, though December was disappointing and broke with the trend of increases in profit set by the previous months.

A statement from the AIM traded company said that the reduction in performance over December was caused by impact from UK trading and relates in part to fewer trading days and, the company believe, year-end stock reductions by UK distributors.

James Halstead's statement added that trading in January is ahead of the comparative period.

"We also note that the group cash balances have increased even after outlays of some £20m on dividend paid in December 2018 and tax payments of £5m. Our confidence in full year progress continues and our ability to continue with strong dividend growth enhanced," said a company statement.

James Halstead's shares were down 0.87% at 456.00p at 0932 GMT.