James Halstead (LON: JHD), the Bury-based maker of Polyflor commercial flooring, raised its total dividend to 8.95p for the year to the 30th of June, which it calls its 50th consecutive increase. Profit before tax fell to £48.2m from £55.1m on revenue of £259.9m, down 0.8%, the company said at 7am today.
The total is made up of a 2.85p interim and a 6.10p final, against 6.05p a year earlier. That is a rise of 1.7% on the 8.80p paid for the previous year. Earnings per share fell to 8.5p from 9.7p, so the payout now exceeds earnings. Executive Chairman Mark Halstead acknowledged the strain.
This is our 50th year of increased dividend but it has been a difficult year.
Mark Halstead, Executive Chairman, James Halstead
The chairman’s statement adds that dividend cover, the number of times earnings cover the dividend, fell below 1 for the first time.
Gross margin held at 44.6%, against 44.5%, so the squeeze came from costs. Selling, distribution and administration costs rose 9% to £69.5m from £63.8m. The company pointed to energy and material costs linked to the Gulf conflict, weaker UK demand and structural changes in UK distribution. It said the UK slowdown came almost entirely in the last two to three months, including a significant drop in sales to Headlam, while sales in Germany and France together fell 5%.
| Year to the 30th of June | 2026 | 2025 | Change |
|---|---|---|---|
| Revenue | £259.9m | £262.0m | -0.8% |
| Gross margin | 44.6% | 44.5% | +0.1pp |
| Profit before tax | £48.2m | £55.1m | -12.7% |
| Profit after tax | £35.4m | £40.6m | -12.8% |
| Basic earnings per share | 8.5p | 9.7p | -12.4% |
| Total dividend | 8.95p | 8.80p | +1.7% |
| Cash generated from operating activities | £49.1m | £35.7m | +37.4% |
| Year-end cash | £75.7m | £68.4m | +10.7% |
Cash is the cushion. Cash generated from operating activities rose to £49.1m, year-end cash to £75.7m, and inventory fell to £75.9m from £80.4m. Direct exports grew, with sales up 45.1% to Western and South Asia, which includes the Middle East, and 23.3% to Africa, where South Africa is the largest market. Separately, turnover at the group’s Polyflor Canada subsidiary rose 24.8%.
The final dividend is payable on Friday the 11th of December to holders on the register on Friday the 13th of November, subject to approval at the annual general meeting.
The company expects short-term headwinds in Europe, especially the UK, to weigh on repair, renewal and roll-out budgets. It expects growth in core UK-made ranges as spending in education, prisons, healthcare and aged care rises, and raised prices at the start of the new financial year after none in the last. Headlam entered administration in September, and the chief executive said this has no material effect on the group’s debt exposure.
