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(Alliance News) - James Halstead PLC on Wednesday reported a rise in first-half profit but warned of Brexit and trade problems in the second half.
James Halstead reported revenue that was flat year-on-year at GBP130.4 million in the six months ending December 31. Pretax profit increased 3.3% to GBP26.0 million from GBP25.3 million.
Current trading is being disrupted by Brexit with customers unprepared and confused by VAT procedures, although the situation has improved since January, the Manchester-based floor supplier said.
There have been shortages of raw materials in recent months, "bordering on supplier rationing," but the company continues to fulfil all its orders. Problems in global shipping have reduced but remain challenging. But demand remains consistently solid and the company has confidence for its performance in the second half, it said.
James Halstead declared an interim dividend of 4.25p per share, equivalent to the previous financial year's two interim dividend payments of 2.125p per share each.
Overall demand for floors was consistent in the first half, with sales to the retail and hospitality hit by the pandemic while sales to hospitals were robust, the company said.
Shares were down 0.6% at 506.72p in London on Wednesday.
By Ivan Edwards; ivanedwards@alliancenews.com
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