James Halstead PLC on Tuesday announced an annual profit climb as cost of sales fell more sharply than revenue.

The Manchester-based commercial flooring manufacturer and distributor said pretax profit rose 7.9% to £56.2 million in the financial year ended June 30, from £52.1 million a year prior.

Revenue, fell 9.4% to £274.9 million from £303.6 million.

Cost of sales decreased faster though, by 18% to £153.8 million from £188.1 million. Gross margin improved to 44% from 38%.

The company declared a 6.0 pence final dividend, up 4.3% from 5.75p, making its full-year dividend 8.5p, up 6.3% from 8.0p. It marked James Halstead’s 49th year of dividend increases.

CEO Mark Halstead said: ‘We have continued to invest in process improvement as well as product development to improve output efficiency and our product offering. This has been substantial, and I am pleased to say has already led to improved productivity and margin improvement. During the year we have secured many prestigious projects around the world, demonstrating the continued demand for our high-quality offering on a global scale.’

Looking ahead, James Halstead said ‘prospects continue to look positive’, and that the firm is confident for the current financial year 2025.

Further, Anthony Wild will step down as chair at the December 6 annual general meeting, with Chief Executive Officer Mark Halstead to step up to executive chair.

Finance Director Gordon Oliver will step up to CEO, while David Drillingcourt will become finance director.

James Halstead shares rose 1.4% to 179.50 pence each on Tuesday morning in London.

Copyright 2024 Alliance News Ltd. All Rights Reserved.