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Highlights:
- James Halstead reported a 9.4% drop in revenue but achieved a 7.9% increase in profit before tax.
- The company's gross margin improved to 44%, supported by strong performance across key markets.
- James Halstead expanded its international presence and maintained a strong cash position, with investments in operational improvements.
Commercial flooring specialist James Halstead (LSE:JHD) announced a 9.4% decline in full-year revenue, down to £274.9m from £303.6m in 2023, as the company faced challenging market conditions. Despite the revenue drop, the AIM-listed firm posted a 7.9% increase in profit before tax, reaching £56.2m, compared to £52.1m the previous year. The rise in profits was driven by improved gross margins and enhanced operational efficiency.
The company’s gross margin rose by 6% to 44%, up from 38% a year earlier, reflecting strong performance across its major markets. However, profit after tax experienced a slight decline of 2.1%, settling at £41.5m, while earnings per share also dropped by 2% to 10p. Despite these minor declines, James Halstead proposed a final dividend of 6p per share, a 4.3% increase from the previous year.
James Halstead also highlighted its strong cash position, with reserves increasing to £74.3m as of 30 June, up from £63.2m at the end of 2023. The company continued to invest in its operations, with key projects including upgrades to its Riverside facility, a lighting overhaul at its Royton site, and preparatory work for solar panel installation at its Radcliffe site.
In addition, the company expanded its international footprint, securing new business in markets such as the UAE, Colombia, and South Africa. The board expressed optimism for the future, anticipating a positive outlook for the coming financial year.
CEO Mark Halstead commented, "2024 has been a largely positive year against a challenging economic backdrop. We’ve secured many prestigious projects globally, demonstrating continued demand for our high-quality offerings."
As of 0939 BST, shares in James Halstead were up 0.99%, trading at 178.75p.
