Pre-close Trading Statement

28 Jan 2009 07:00



28 January 2009

James Halstead plc

Pre-close Trading Statement

James Halstead plc, the commercial flooring manufacturer and distributor, is providing the following trading update prior to entering the close period ahead of its interim results for the six months to 31 December 2008.

James Halstead will announce these results on 31 March 2009.

The confidence expressed by the Chairman, Mr Geoffrey Halstead, at the Annual General

Meeting, held on 10 December 2008, was well founded and, as reported by him, our interim dividend payable in June will be a record. In these challenging times, turnover and trading profit have continued to grow and will, in line with our expectations, be higher than the comparative period. The Group is starting to benefit from falling raw material prices and export margins are being bolstered by the weakness of sterling.

One negative aspect of the credit crunch is that the Group's interest return on cash balances ( circa £31million at 31 December 2008) is being adversely affected by falling rates and we estimate this will cost an annualised £1m going forward at current prevailing rates.

On 6 January 2009 the Group acquired a modern warehouse facility of 289,000 ft² in Oldham to consolidate existing temporary facilities and to allow for continued expansion. These freehold premises were acquired for cash.

Commenting, Mr. Geoffrey Halstead said: "The first six months sales and profit have been satisfactory and with the UK government committed to continuing infrastructure spending we believe there is a bedrock of demand within the home market. Though sterling weakness benefits our significant export business, we remain cautious as to global performance in the current climate and we will continue our focus on cost reduction and control of working capital in the coming months. "

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