James Halstead (JHD) delivered a mixed performance for the six months to December last year, but still managed to push operating profits fractionally higher to a record £23.5m. Around two-thirds of the flooring specialist's business comes through exports, which sterling's decline helped to lift by 12 per cent; this growth rate was a more modest 2.5 per cent in constant currency terms. By the same token, imported raw materials became more expensive.
Trading volume in mainland Europe was flat, although the launch of several new products has attracted interest, which should boost sales in the second half. Scandinavian sales were subdued to begin with, but a much stronger second quarter helped to push sales and profits there ahead from a year earlier.
Trading in Australia and New Zealand has seen sales growth following last year's restructuring, while local sales in Canada were higher, too. And while the resources sector there continues to suffer, new business has been secured in other sectors, including retail and commercial buildings.
Trading in the UK was more difficult, with turnover down by 7 per cent, mainly as a result of destocking. One customer drastically destocked before being sold to a UK-based private equity investor in February this year, and a more regular trading pattern may now resume.
Analysts at Panmure Gordon are forecasting adjusted pre-tax profits for the year to June 2017 of £47.4m and EPS of 17.8p (from £45.5m and 17.1p in FY2016).
| JAMES HALSTEAD (JHD) | ||||
|---|---|---|---|---|
| ORD PRICE: | 506p | MARKET VALUE: | £1.05bn | |
| TOUCH: | 504-509p | 12-MONTH HIGH: | 516p | LOW: 365p |
| DIVIDEND YIELD: | 2.4% | PE RATIO: | 31 | |
| NET ASSET VALUE: | 47p | NET CASH: | £51.6m | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 115 | 23.0 | 8.6 | 3.5 |
| 2016 | 120 | 23.2 | 8.5 | 3.75 |
| % change | +4 | +1 | -1 | +7 |
Ex-div: 4 May Payment: 6 Jun | ||||
