Flooring specialist James Halstead (JHD) delivered another year of record profits buoyed by sales growth of 7.3 per cent in overseas markets and, despite tough competition, a 2.9 per cent increase in UK sales. Operating cash flow increased from £32.9m to £37.3m and there is a useful £38.5m cash pile, too, which underpinned an increase in the dividend for the 36th successive year.
Turnover increased by 13 per cent in Norway and Sweden, with similar gains in Germany, Holland, France and Switzerland, although cuts in government spending and lower investment in mining projects pushed turnover down by 5 per cent in Australia. It's worth noting that UK turnover has risen by 6 per cent in the first two months of the current financial year, but management is maintaining a cautious stance. This is partly because recent gains in capacity have outstripped sales growth, and this could present a tough balancing act between output and manning levels. Furthermore, while raw material costs were broadly steady, polymer prices remained at near-record levels.