Pre-close Trading Statement

25 Jan 2010 07:00



25 January 2010

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 2009.

James Halstead will announce these results on 31 March 2010.

The confidence expressed by the Chairman, Mr Geoffrey Halstead, at the Annual General Meeting, held on 4 December 2009, was well founded. 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. 

Turnover of our overseas operations has been bolstered by the lower value of sterling but is ahead of last year even if these effects are excluded. Our UK turnover reflected difficult markets in this six month period though international sales in central Europe, New Zealand and Australia all show positive trends. Overall turnover is ahead 7%. 

As announced at the AGM, a special dividend of 15 pence per ordinary share is being paid to shareholders today. The Chairman noted at the AGM that the Board was minded to pay the interim dividend earlier this year, which would have the effect of moving the income from the 2010/11 tax year into the current tax year. The Board have decided to adopt this early payment and consequently the interim dividend of 8.0p per ordinary share (2009: 7.25p), an increase of 10.3%, will be paid on 31 March 2010 to those shareholders on the register at the close of business on 5 March 2010.

Commenting Mr Mark Halstead said:

"Several of our competitors are suffering lower sales, and there have been cut backs in infrastructure spend in many markets but we continue to progress. We have recently committed to capital expenditure of £4 million to upgrade our plant to increase productivity and capacity. This investment and new product developments, which are at an advanced stage, are measures of our continued confidence." 

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