James Halstead PLC on Wednesday said lower consumer confidence led to a drop in revenue for the first half of its financial year, but saw its profit rise on higher interest rates.

The Manchester-based commercial flooring manufacturer and distributor said in the six months ended December 31, revenue was £136.5 million, down 8.8% from £149.6 million the year before. This was driven by ‘lower consumer confidence in major markets and delays in rebuilding supply to export markets,’ Chair Anthony Wild explained.

Pretax profit, however, grew 18% to £27.4 million from £23.2 million a year ago, as the firm said it received higher rates of interest on cash deposits. James Halstead also said this was due to an increased operating profit, which was up 14% to £26.2 million from £23.1 million a year ago.

James Halstead declared an interim dividend of 2.50 pence per share, up 11% from 2.25p in the first half of financial 2023.

Looking ahead, James Halstead said its sales of manufactured goods in January and February are ‘in line with last year’s record comparatives’. It also noted that UK activity is showing ‘improved confidence against the last six months.’

‘Margins remain solid and overheads are contained within inflationary parameters. Consequently, the improved first half profitability continues into the early months of the second half of the year. I, and the board, remain confident of making further progress,’ Wild added.

Commenting on the results, Chief Executive Mark Halstead said: ‘Against difficult markets we have raised profits and are confidently growing our export of UK manufactured goods across the globe. Once again, we have declared a record interim dividend to shareholders to reward their continued investment’.

Shares in James Halstead were up 1.0% to 205.00 pence each in London on Wednesday morning.

Copyright 2024 Alliance News Ltd. All Rights Reserved.