James Halstead trades in line in 'challenging' first half

The AIM-traded firm said the normal course of business still evolved in the six months ended 31 December, adding that it had continued to trade at normal levels through the various national lockdowns, but it had been hard work.

It said the cost and availability of international freight towards the end of the period had also been a major issue, and there had been upward pressure on raw material costs.

At the annual general meeting on 12 November, chairman Anthony Wild noted that trading to date had been “encouraging” in terms of turnover for the first four months of the current financial year, with sales on a par with the levels of last year.

The board said on Monday that the trend had continued through November and December.

Diverse projects using the firm’s flooring included a 10 cinema IMAX complex in Aruba, the AXA Insurance Towers in Casablanca, several modular hospital contracts in Argentina, and the Big Brother house in Portugal.

“Turnover has been solid and we believe this is a creditable performance against the prevailing market conditions,” the board said in its statement.

“There was noticeable market share growth in the UK in November and December, due in part to Brexit concerns of customers about supply from European based competitors.”

James Halstead said underlying margins were under pressure due to increased shipping costs both into the UK and on exports, as well as the difficulties of manufacturing during the six months owing to manning problems.

“Notwithstanding this adversity, the company expects to report pre-tax profit for the half-year in line with last year's record level.

“Our balance sheet remains robust, with cash balances above our year end in June and the comparative for December 2019.”

James Halstead said it would publish its interim results for the six months ended 31 December on 31 March.

At 0823 GMT, shares in James Halstead were up 1.8% at 503.92p.