Flooring manufacturer and distributor James Halstead (JHD) says that it was on course for its best year ever until Covid-19 struck in its final quarter. While international markets proved more resilient to pandemic disruption, sales in the UK dropped by 11 per cent in the year to 30 June, to £79m. The group had been expecting domestic sales to grow by 8 to 10 per cent.
Demand was squeezed by delays to building projects, but the overall damage was limited thanks to James Halstead’s exposure to the healthcare industry. The pandemic has created the need for temporary medical facilities – be it hospitals or assessment centres – and the group has benefited from its preferred supplier status with the NHS.
Turning to the current financial year, the three months to 30 September saw sales in line with a year earlier – significant because that period in 2019 saw record trading. The group says that the bounce back partly reflects pent-up demand from lockdown, but also higher refurbishment activity in areas such as modular building. Sectors such as hospitality and catering remain subdued.
While operating profit fell by 9 per cent to £44m last year, house broker Panmure Gordon forecasts it will rise to £46m in 2021 and £49m the year after.
| JAMES HALSTEAD (JHD) | ||||
| ORD PRICE: | 490p | MARKET VALUE: | £1bn | |
| TOUCH: | 490-491p | 12-MONTH HIGH: | 580p | LOW: 340p |
| DIVIDEND YIELD: | 2.9% | PE RATIO: | 30 | |
| NET ASSET VALUE: | 65p | NET CASH: | £62m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 226 | 45.5 | 17.0 | 12.0 |
| 2017 | 241 | 46.6 | 17.6 | 13.0 |
| 2018 | 250 | 46.7 | 17.7 | 13.5 |
| 2019 | 253 | 48.3 | 18.2 | 14.0 |
| 2020 | 239 | 43.9 | 16.5 | 14.3 |
| % change | -6 | -9 | -9 | +2 |
| Ex-div: | 19 Nov | |||
| Payment: | 11 Dec |
