For the first time for over a decade, James Halstead (JHD) reported a fall in full-year pre-tax profit, but - thanks to a lower tax charge - earnings per share were marginally higher and, once again, the flooring specialist increased the dividend payout.
Group turnover did fall - largely reflecting exchange rate fluctuations and the closure of motorcycle accessories business Phoenix Distribution. However, even without these factors, turnover in the core flooring business still fell 1.1 per cent. Much of this reflected an 11 per cent drop in sales in Australia as certain large projects were completed but, in Hong Kong and Oriental Asia, sales grew by 8 per cent.
In the UK, turnover grew by 3.7 per cent, thanks in part to an increased product range, while sales in Sweden grew 23 per cent. Turnover in Norway also rose solidly - up 5.4 per cent - underpinned by an increase in new-build and refurbishment activity. Central European sales rose strongly, too - up 14.1 per cent from the previous year - although tough competition resulted in a slight erosion in profit margins. Finances remained in good shape and cash flow from operations grew 13 per cent to £42.1m.
Broker Arden Partners expects pre-tax profit for 2014 of £42m, giving EPS of 15.2p (from 14.8p in 2013).
| JAMES HALSTEAD (JHD) | ||||
|---|---|---|---|---|
| ORD PRICE: | 290p | MARKET VALUE: | £599m | |
| TOUCH: | 288-295p | 12-MONTH HIGH: | 340p | LOW: 235p |
| DIVIDEND YIELD: | 3.0% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 44p | NET CASH: | £34.7m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p)* | Dividend per share (p)* |
|---|---|---|---|---|
| 2009 | 169 | 33.0 | 12.1 | 5.45 |
| 2010 | 186 | 35.7 | 12.4 | 6.25 |
| 2011 | 214 | 38.5 | 13.2 | 6.95 |
| 2012 | 226 | 42.7 | 14.7 | 8.00 |
| 2013 | 217 | 41.2 | 14.8 | 8.75** |
| % change | -4 | -4 | +1 | +9 |
Ex-div: 6 Nov Payment: 6 Dec *Adjusted for January 2013's one-for-one bonus issue **Excludes special dividend of 7p a share | ||||
