James Halstead Share Discussion Threads

[zangdook] 31/3/2022 08:41

Russia is a market that we no longer trade with.

They might have given a little more detail there - is it a market they usually trade with? Have they stopped in response to the war and sanctions, or had they stopped anyway? If the former, have they interrupted any contracts? How much revenue did Russia generate in recent years?

[wad collector] 31/3/2022 08:35

That's a relief , basically as expected.

Sales revenue of GBP136.7 million (2020: GBP130.45 million) is another record, which considering the turmoil in the market many companies have faced, is a satisfactory achievement. There has been a small drop in profits for the period, and while disappointing, given the increased costs in both raw materials and energy, I can only describe this as a commendable result.

[wad collector] 30/3/2022 15:14

A drop ahead of interims is a bit worrying but I have decided to add at 242 . Seldom hear bad news from JHD , the darling of AIM portfolios...

[wad collector] 25/3/2022 14:50

Interims out on Thursday.

[bda3490] 07/3/2022 15:50

Zangdook
Twice as many at over half the price what’s not to like

[zangdook] 06/3/2022 13:58

Not much use when they do a magic share split and crash the price.

[tmfmayn] 06/3/2022 12:57

[SharePad] Screening For My Next Long-Term Winner: JAMES HALSTEAD #JHD


"Halstead’s dividend is in fact among the market’s most dependable. My own spreadsheet shows the ordinary payout being lifted every year since 1976."


[km18] 21/2/2022 17:54

...from WealthOracleAM

[km18] 21/2/2022 17:54

...from last year...

Company overview:
James Halstead is a manufacturer and distributor of flooring products established in 1914. The company became public in 1948 and to this date is one of the leaders in the industry. They operate internationally with sites in Canada, Continental Europe, and Asia Pacific. The Group consists numerous brands serving various industries – schools, hospitals, transport, and public buildings. Their strategy is focused around building brand image through customer satisfaction and striving for high customer retention rates. Growth is completely organic, without a single acquisition in the past decade, and significant expenditures in fixed assets.
Fundamentals are strong but growth is at best average, with all CAGR percentages across the Income statement below the threshold 1%. Where the company shines is ROCE, standing at 28.8% TTM and no gearing on the balance sheet. Return on capital is at 28.8% and dividends were growing each of the last 5 years.
Today the group released preliminary results for the period ending June 2021 and Revenue is at £266.4m or 11.6% above 2020. PBT is 16.9% to £51.3m and EPS have swelled to 19.2p (16.4% from last year). Operating profit has smashed the previously expected by Panmure Gordon  £45.9m, reaching £51.77m. Management acknowledges the pricing pressure and supply issues over the period and expects these to persist in the coming months, but is confirming its positive outlook for the coming period

Short analysis (Annual 2021):

Cash increased during the period
Net gearing is negative
CA/CL = 2.69
Cash ratio = 1.19
Interest coverage = 93.62
Operating profit of £51.268m
Gross profit Margin of 41.91%...

...from WealthOracleAM

[wad collector] 01/2/2022 09:47

Yes it is a sort of semi-warning , but you have to factor in the classic JHD cautious understatement .This is a long term investment for most. It let me buy back my traded holding for a quick 10%!

[liam1om] 01/2/2022 08:22

Looks like a pre-warning.

[lundhousegreen] 01/2/2022 07:49

Trading update

[bda3490] 20/1/2022 19:13

314p

Just seen Airea is 27p it only seems a moment ago Jhd were snooping for that at it rose to 65P and the Airea share chat thought 100p was on !!

I’m not top slicing

Good to see the tax stuff in detail IHT ok

I’m led to think it cost about £15k to list the bonus shares ( probably not more than the cost of posting the certificate)

Still amazed that it’s twice as many but more than half the price !

The £6 barrier busted

[bda3490] 20/1/2022 19:13

314p

Just seen Airea is 27p it only seems a moment ago Jhd were snooping for that at it rose to 65P and the Airea share chat thought 100p was on !!

I’m not top slicing

Good to see the tax stuff in detail IHT ok

I’m led to think it cost about £15k to list the bonus shares ( probably not more than the cost of posting the certificate)

Still amazed that it’s twice as many but more than half the price !

The £6 barrier busted

[wad collector] 20/1/2022 16:28

Sold a few at 307. I am sure it will go higher but it is a bit volatile and I am gambling on a quick buy back for 5%. And if not, I still have lots..

[wad collector] 20/1/2022 15:10

Yes, I don't know why they call them internal manuals - they appear on google searches!

Good to see £3 being sustained this afternoon, tempting me to one of my occasional tops slices I think...

[zangdook] 18/1/2022 00:30

Thank you. That makes it clear.
Is that internal manual available anywhere?

[wad collector] 17/1/2022 23:11

Zangdook
From HMRC internal manual, which clarifies the issue , it later clarifies that the same is true for AIM shares and the 2 year rule. Yes it makes no difference if they are reorganised or whatever.



shares
IHTA84/S107(4), with effect from 6 April 1996, provides that, without prejudice to subsection (1), shares within IHTA84/S105(1)(bb) (i.e. any unquoted shares), which are:

owned by the transferor immediately before the transfer; and
would, under TCGA92/S126 – S136 (capital reorganisation, company reorganisation or amalgamation) be identified with other shares previously owned by them,
will have their period of ownership treated as including the period of ownership of the original shares. So if, for example, there was a capital reorganisation just six months before the transfer, but the earlier shares had been held for five years, the period of ownership of the earlier shares would be taken into account if they themselves would have qualified for the relief.

[bda3490] 17/1/2022 12:03

Bonus issue/ stock split my belief is the IHT position is that the date is not 14 Jan but the date of original purchase. Its an artificial construction that alters the share price. Has to be that way or else you'd have to use the original share price for the base cost which would be a nonsense. Another way of doing it is to move from 10p shares to 5p - again twice as many at half the price.

Think of it as 2 6 inch logs versus 12 inch logs. Or two £1 coins in exchange for one £2 coin

OK if it was a bonus in lieu of a dividend (Script) then that would have a new date as you gave up a dividend on that date

[zangdook] 16/1/2022 23:35

But is it a reinvestment? Calling it a "bonus issue" makes it appear we're being given something new, akin to a dividend in specie.

It's interesting to hear you've been talking to them. I've found it almost impossible to get definite information about some of the minutiae of the rules. I had a couple of companies taken over and was careful to reinvest immediately, but aiui this only works if shares have already been held for two years - ie if you've held for 23 months and a company is taken over you have to start all over again. Do you know if that's right?

[wad collector] 16/1/2022 17:39

Can't see it will make any difference , because under the AIM IHT rules , you won't lose IHT protection if you reinvest "soon" if a company loses AIM status by takeover or whatever . So however it is interpreted ,split/bonus , you are immediately reinvesting in an AIM company.
Having recently negotiated with HMRC on an AIM portfolio, it is also clear that they are overwhelmed with work and they don't have time to look into any of these sort of issues in more than a fraction of the IHT applications. Though that is a different issue of course...

[zangdook] 15/1/2022 02:25

Another problem - how does this affect the IHT exemption for AIM shares? Does the two year clock start ticking from 14 January for the "bonus" shares, or from the original date of purchase?