James Halstead back on track

Turnover moved ahead marginally, held back by a dearth of infrastructure projects such as new schools and hospitals. But Mr Oliver reckons that activity is starting to pick up again, especially in emerging markets. Trading in mainland Europe remained under pressure, so pushing sales in the region ahead by 3 per cent was a notable achievement. But that came at the expense of margin in some markets, notably Germany, where the expanded use of retrospective rebates (where customers earn a discount after reaching agreed sales targets) pushed net profits down 5 per cent. On a brighter note, UK sales grew 7 per cent, helped by the launch of Polyflor App, which allows customers direct access to sample scans and technical information.

Trading in Australia and New Zealand remained challenging, and gross margins suffered as shelves were cleared to accommodate new designs. However, further sales opportunities are expected after the last indigenous (although foreign-owned) manufacturer of vinyl flooring in Australia closed down.

Shore Capital has left its forecasts unchanged for the current year at £44.3m for adjusted pre-tax profits and 15.8p for EPS.