James Halstead PLC Trading Update (7384H)

TIDMJHD

RNS Number : 7384H

James Halstead PLC

01 August 2023

1 August 2023

JAMES HALSTEAD PLC

(the "Company")

Trading Update

James Halstead plc, the commercial flooring manufacturer and international distributor, is providing the following trading update ahead of its results for the year ended 30 June 2023.

The Company's market expectations for the full year remain unchanged.

2023 was a year of contrast, with the earlier months of the financial year having faced escalating energy costs, severe difficulties as a result of the lack of timely availability of international shipping and increased transportation costs. However, the latter months of the year were much more positive with the easing of electricity costs and a great improvement in shipping and transportation costs.

Sales demand has, on the whole, proved positive with the UK, the Americas, Australia, New Zealand and Malaysia all reporting increased demand, although Central Europe sales were lower than last year. Also positive for the year, gross margins improved for the reasons already noted and were helped by a swing in the mix of sales to pure commercial ranges as opposed to light commercial/heavy domestic. The core focus of our flooring ranges in healthcare, education and retail infrastructure, rather than private residential, remains a key benefit to our business model.

In March 2023, the UK finalised an agreement to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The agreement sees the UK joining the CPTPP, whose membership consists of Australia, Canada, Japan, Mexico, New Zealand, Singapore, Brunei, Chile, Malaysia, Peru and Vietnam. Following the agreement, the UK government estimates that over 99 per cent of UK exports to the bloc will be eligible for zero tariffs. James Halstead exports various product lines to 10 of the 11 CPTPP member countries (the exception being Brunei), representing an estimated c.8% of its global revenue, where import tariffs range between 5% - 20%. This is good news for the competiveness of our products in these markets.

Stock levels that were strategically raised last year are now at much lower levels and our cash balances are robust and ahead of comparatives at 30 June 2022 and 31 December 2022, even though record levels of dividend and taxation have been paid out during the year.

The Company expects to announce its results for the year ended 30 June 2023 on 2 October 2023.

 
 
 
 
 
 
   Enquiries: 
 
 James Halstead plc                        Tel: [phone] 
                                                    2500 
 Mark Halstead, Chief Executive 
 Gordon Oliver, Finance Director 
 
 Hudson Sandler                            Tel: [phone] 
                                                    4133 
 Nick Lyon / Nick Moore 
 
 Panmure Gordon (Nomad and                 Tel: [phone] 
  Joint Broker)                                     2500 
 Dominic Morley 
 
 WH Ireland (Joint Broker)                 Tel: [phone] 
  Ben Thorne / Chris Hardie                         1666 
 
 
 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTNKDBBCBKKPON

(END) Dow Jones Newswires

August 01, 2023 02:00 ET (06:00 GMT)