Flooring specialist James Halstead (JHD) faced some headwinds in the first half, but still managed to report a record profit and a special dividend payment which tots up to a running yield of 4.7 per cent. Statutory revenue was lower, but if you remove the impact of a strong pound on its overseas trading, turnover actually rose by 2.9 per cent, while operating profits were ahead by 7.7 per cent at £23.3m.
Gross margins were higher too, thanks to reduced raw material costs - helped in fact by sterling's strength - and energy savings. Overheads were down 3.2 per cent. The UK market represents over a third of group turnover, and delivered revenue growth of 4.5 per cent, thanks to projects such as the flooring at Croydon University Hospital and the Vision Express retail chain.
Polyflor Canada pushed revenue ahead by a third, while James Halstead France delivered an increase in turnover of nearly 10 per cent. The central European operation benefited from further expansion by customers such as Ikea, and sales grew by 4 per cent.
Analysts at Panmure Gordon are forecasting adjusted pre-tax profits for the year to June 2016 of £45.4m and EPS of 16.4p, from £44.2m and 16.2p in FY2015.
| JAMES HALSTEAD (JHD) | ||||
|---|---|---|---|---|
| ORD PRICE: | 412.25p | MARKET VALUE: | £855m | |
| TOUCH: | 412.25-419.75p | 12-MONTH HIGH: | 521p | LOW: 305p |
| DIVIDEND YIELD: | 2.8% | PE RATIO: | 24 | |
| NET ASSET VALUE: | 44p | NET CASH: | £56m | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 117 | 21.4 | 7.8 | 3.142 |
| 2015 | 115 | 23.0 | 8.6 | 3.5* |
| % change | -2 | +8 | +10 | +11 |
Ex-div: 5 May Payment: 3 Jun *Not including special dividend of 7.858p a share, paid on 26 February. | ||||
