(Sharecast News) - Commercial flooring company James Halstead reported "significant resilience" in its supply chain on Thursday, with shortages being "well-managed", although some cost increases needed to be absorbed in the short term.
The AIM-traded firm, which was holding its annual general meeting where it was set to approve a record final dividend of 11p per share, said there was an "inevitable delay" in passing on price increases to stockists, and to the projects it had quoted for.
Chairman Anthony Wild did confirm, however, that the company had already passed on some increases.
"Since the year end on 30 June, we have generally experienced less disruption to our manufacturing workforce, with consequent operational efficiencies, increased productivity and greater factory output," Wild told shareholders.
"In addition, there is increasing evidence of a return to normal levels of repair and renewal in the leisure and hospitality sectors which, for us, have suffered greatly over the last eighteen months.
"The situation continues to offer challenges and frustrations and it is still difficult to say that the adversities are behind us."
Notwithstanding the foregoing comments, Anthony Wild said the short-term external challenges facing the business had "no effect" on the ongoing execution of the group's strategy and the growth of its businesses globally.
"Our stockists, sales representatives and many agents are taking increasing orders and we are shipping goods in a more positive environment than we have experienced for some time.
"Sales for the first four months of the new trading year are ahead of the comparative for last year."
At 1139 GMT, shares in James Halstead were down 0.11% at 567.39p.
James Halstead (JHD)9 May 2024 15:51