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James Halstead, the UKs largest commercial flooring manufacturer, has delivered a good performance in the first half. Interim results (covering the 6-months to Dec-24) showed gross margins up 100 basis-points to 44.8% (1H25 vs 1H24). The uplift reflected a combination of slightly lower input costs and manufacturing efficiencies. As seen in previous periods, demand varies by geography. Within the mix, USA and the Mediterranean region delivered double-digit growth and the UK was stable. This largely offset ongoing weakness in Central Europe. Cash generation remained strong, with the business ending the period with net cash of £65.5m. Overall, despite a relatively challenging macro environment, James Halstead is on target to deliver our FY25 earnings estimates and we are leaving our full-year profit forecasts unchanged. Given the ongoing operational momentum, we reiterate our BUY recommendation and 320p target price.
James Halstead plc
James Halstead, a manufacturer and international distributor of commercial floor coverings, has provided interims results this morning for the period to 31 December 2024, which report a 4% improvement in PBT against a backdrop of challenging end markets. Revenues for the period were 5% below the prior period at £130.1m (H1 2024: £136.5m), reflecting mixed end markets, with the UK broadly flat on H1 24, weakness in Central Europe and Australia, partially offset by good performances in North America and South Asia. Despite this, strong gross margins and continued cost control delivered progress at the PBT level, with adj. PBT of £28.5m 4% above H1 2024, resulting in EPS +4% and a 10% rise in the proposed interim dividend. With H2 trading reported to have started positively, notably with UK sales 9% ahead YoY in January, we leave our FY25 forecasts unchanged this morning. Having continued to deliver PBT growth against a challenging market backdrop, we view today’s results as further underling Halstead’s exceptional record of delivery and dividend growth. Now trading on an FY25 P/E of 14.1x and dividend yield of 6.1%, we view current ratings as undervaluing the business given a long-term average P/E of 24x.
James Halstead, the UKs largest commercial flooring manufacturer, has released a trading “in line” pre close update (covering the 6-months to Dec-24). As seen in FY24, healthy performances in the Middle East and the Americas, are offsetting challenging trading conditions in certain European territories. We believe, manufacturing efficiencies (from longer production runs) and ongoing cost management are enabling the team to maintain margins and high returns. Therefore, we are leaving our full-year revenue, earnings and FCF forecasts unchanged. Given the on-going operational momentum, we reiterate our BUY recommendation and 320p target price.
James Halstead, a manufacturer and international distributor of commercial floor coverings, has provided an H1 trading update for the period to 31 December 2024, which illustrates a resilient performance against continued headwinds in a number of markets. Revenues for the period are expected to be slightly below the prior year (H1 2024: £136.5m), with strong margins delivering PBT at a “comparable” level (H1 2024: £27.4m) and on track to meet market expectations for the full year. With mixed demand across a number of the group’s end markets, we leave our PBT/earnings expectations unchanged, while reducing our FY25 revenue forecast by c.2%, driven by of stronger margins. We remain positive on the outlook for the group, with strong performances in growth markets and an expected easing of short term destocking effects at specific UK customers. Given Halstead’s exceptional record of delivery and dividend growth, we view current ratings as undervaluing the business given the long-term average P/E of 24x. We retain our fair value assessment for the shares at 280p.
James Halstead, the UKs largest commercial flooring manufacturer, has released a trading in line AGM update. As seen in FY24, healthy performances in the Middle East and the Americas, are offsetting challenging trading conditions in certain European territories. We believe, manufacturing efficiencies (from longer production runs) and ongoing cost management are enabling the team to maintain margins and high returns. Therefore, we are leaving our revenue, earnings and FCF forecasts unchanged. Given the on-going operational momentum, we reiterate our BUY recommendation and 320p target price.
James Halstead has this morning provided a brief AGM update, pointing to trading since the beginning of the current financial year in line with expectations and with cash generation continuing to be positive. While the wider market backdrop remains challenging, particularly within the domestic segment, JHD reports positive demand in public sector end-markets, particularly in healthcare, education, and aged care. The final dividend of 6.0p takes the total dividend for the year to 8.5p, the 48th year of unblemished dividend growth. On the back of this morning’s update, we leave our forecasts unchanged following recent upgrades at the time of the full year results in October. With the shares trading at a c.25% discount to the long-term average PE multiple, the strength of the model, strong cash generation, high returns profile and the potential for forecasts to be raised once markets improve, we believe the current share price provides an excellent entry point into this high-quality business.
James Halstead, the UKs largest commercial flooring manufacturer, has delivered a strong performance in the 12-months to Jun-24. Healthy performances in the Middle East and the Americas, increased productivity and ongoing cost management meant that pre-tax profits increased from £52m FY23 to £56m in FY24. This compares with the PL estimate of £55m. With gross margin trends remaining firm we are raising our FY25 PBT estimate from £55m to £57m (+4.1% upgrade).
James Halstead, a manufacturer and international distributor of commercial floor coverings, has this morning announced positive FY24 results, which illustrate a strong margin performance against a wider challenging backdrop for flooring demand. Revenues of £275m (Zeus est. £285m) decreased 9.4% YoY, primarily driven by weaker underlying demand in a number of regions and wider destocking at certain distributors. Despite this, the group made strong progress on gross margins (+603bp to 44.1%), reflecting increased output from their UK plant and an easing of certain raw material costs, leading to a 7.9% increase in PBT to £56.2m (Zeus est. £54.0m). With margins ahead of expectations, and the drivers behind this expansion expected to continue, we increase FY25E PBT and EPS forecasts this morning, expecting a return to revenue growth as short term impacts of destocking eases. Given Halstead’s exceptional record of delivery and dividend growth, and improving outlook, we view current ratings as undervaluing the business given JHD’s long-term average P/E of 24x. We retain our fair value assessment for the shares at 280p.
James Halstead, the UKs largest commercial flooring manufacturer, has delivered a positive pre close update for the 12-months to Jun-24. Healthy performances in the Middle and East and the Americas, increased productivity and ongoing cost management means that James Halstead is confident that profits, cash and dividends will exceed prior year comparatives. Consequently, we are leaving our pre-tax, FCF and dividend forecasts unchanged.
James Halstead, a manufacturer and international distributor of commercial floor coverings, has this morning provided a trading update on the year ended 30 June 2024, reporting PBT in line with recently upgraded expectations. The business continues to benefit from its weighting towards commercial flooring markets, with healthcare, education and other institutional sectors reported to be performing markedly better than the domestic segment, notably within the UK and Europe. Record PBT is anticipated in the year, despite headwinds from disruptions to shipping in the Red Sea and weaker domestic demand, reflecting margin benefits from the product mix, tight control of overheads, and a modest reduction in raw material costs. With an exceptional track record of consistent delivery, exemplified by the expectation of a 49th consecutive increase in the dividend this year, we view current ratings as undervaluing a business which currently trades on a significant discount to its long-term average. We retain our fair value assessment for the shares at 280p.
James Halstead is a manufacturer and international distributor of commercial floor coverings. This morning the group has released interim results to 31 December 2023, reporting a mixed market backdrop leading to a 9% reduction in revenue more than offset by a strong margin performance, resulting in an 18% rise in PBT and 12% increase in EPS, while the proposed dividend has increased by 11%. Positive demand in smaller growth markets such as South America and the Middle East (revenue +36% and +26% respectively) was more than offset by weakness in Europe and the UK where economic pressures impacted demand. Margin expansion was driven by operational efficiencies and higher manufacturing output, with previously experienced raw material shortages, labour restrictions and shipping availability materially reduced compared to the comparative period. Looking ahead, JHD highlights improving sentiment and positive trading since the beginning of H2 and we expect the 62% H1 increase in manufacturing output delivered to lead to higher revenue in H2, particularly in key export markets. Reflecting these dynamics, we reduce our FY 2024E revenue expectations, while increasing margin assumptions, resulting in an upgrade in PBT/EPS of 2.7%. We retain our fair value for the shares at 280p.
James Halstead, the UKs largest commercial flooring manufacturer, has delivered a positive set of interim results for the six months to Dec-23. Increased productivity has translated into higher gross margins and PBT is up 18.0% YoY to £27.4m (1H24). Given the positive progress in margins, we are raising our FY24 PBT estimate by £1.0m to £54.5m (+1.7% upgrade). Underlying markets mixed: Revenues reduced from £150m (1H23) to £137m (1H24). Within the mix, Halstead experienced recessionary pressures in certain key territories (e.g. Germany, a large proportion of Australasia and the UK). Despite logistics disruption, UK exports were healthy. Activity benefited from growth in South America (+36% YoY), the Middle East (up +26%) and the Mediterranean (up +22%). Elsewhere, New Zealand sales were up +4%. Activity helped by the active sales approach and promotional activity: Whilst sales are down, James Halstead has avoided the month-on-month volatility seen elsewhere in the building materials sector. This reflects the groups active sales approach and its use of promotional activity across both product lines and geography. Increased output driving margins: During the period, output increased +62%, enabling gross margins to expend by 6%. This return to normal levels, helped EBIT margins expanding from 15.4% (1H23) to 19.2% (1H24). This compares favorably with the FY15-FY19 average of 19.5%. Record dividends: James Halstead has increased the dividend each year for 47 years. Since 1997 the ordinary dividend has (on average) increased >10% pa. Some of the increase reflects the increasing the payout ratio. However, cover remains comfortably above 1x. With over £60m of cash on the balance sheet, the pay-out is continuing to move higher. The interim dividend has been increased by +11%. We now expect a total dividend of 8.5p (previous estimate 8.2p). Conclusion: The quality of a business is demonstrated by its ability to navigate turbulent markets. In this regard, James Halstead continues to score well, validating our positive stance on the stock. Moreover, the high (and sustainable) RoIC and the scope to further expand international sales provide additional layers to the James Halstead story. Therefore, we reiterate our BUY recommendation and 320p target price.
James Halstead is a manufacturer and international distributor of commercial floor coverings. This morning, the group has released a brief H1 update for the six months to 31 December 2023, pointing to a continuation in the positive momentum previously seen. H1 2024E PBT is expected to be c.15-20% ahead of the comparative period (H1 2023A £23.2m), benefiting from both good levels of demand, notwithstanding some softening in certain European markets, and equally importantly, inflationary and supply chain pressures easing. The closing cash position is reported to be ‘robust', this having benefitted from an unwinding of the higher level of stocks held 12-months ago to mitigate any potential supply chain disruption. As such, the Board's expectations for the full year remain positive and for continued progress on the dividend.
James Halstead is a manufacturer and international distributor of commercial floor coverings. This morning the group has released a brief AGM update, pointing to the positive sales and margin performance seen in H2 2023A continuing during the first five months of the current financial year, alongside confirmation of the final dividend of 5.75p (FY 2023A 8.0p +3.2%), the 47th consecutive year in which it has increased. While key markets remain highly competitive, the group reports increased output along with profitability and cash both being materially ahead of the comparative period.
James Halstead, the UK’s leading manufacturer of flooring for the commercial and public sectors, has delivered a robust AGM statement. Momentum from 2H23 has been maintained, with decent demand across its major markets. Meanwhile, cash levels are ahead of comparative levels supporting James Halstead record dividend distribution. Given the healthy performance we reiterate our BUY recommendation and 320p target price.
James Halstead is a manufacturer and international distributor of commercial floor coverings. This morning the group has released full year results to 30 June 2023, with earnings ahead of expectations reflecting a material improvement in margins over the period, despite a varied backdrop across Halstead's key markets. Input costs, a number of which had escalated in H1 2022, are now reported to have eased in H2, combining with a succession of price increases to deliver an encouraging improvement in margins over H1. Demand has generally trended positively during the year, with markets outside of Central Europe performing strongly and new markets including the USA and Malaysia continuing to post high growth (+36% and 78% respectively). Caution in increasing headcount led to significant unfilled orders despite strong demand in the year, with the group prioritising higher margin sales to deliver PBT of £52.1m, in line with our forecast, on lower than expected sales (FY23A: £303.6m, WHI est: £321.0m). Following this trend, we reduce our revenue expectations, while increasing our margin assumptions, resulting in our PBT/EPS estimates unchanged. While remaining cautious of the global economic outlook, we view Halstead as increasingly well positioned given easing cost pressures and the strength of its balance sheet. We retain our fair value assessment of the shares at 280p.
James Halstead, the UK’s leading manufacturer of flooring for the commercial and public sectors, delivered another robust sales performance in the second half and FY sales exceeded £300m for the first time. Meanwhile, EBIT margins began to expand. As a consequence, FY23 PBT was £52.1m, in-line with expectations. We believe that whilst the outlook statement is cautious, it is levelheaded, and we are leaving our FY23 earnings estimates unchanged.
James Halstead is a manufacturer and international distributor of commercial floor coverings. The group has this morning released a robust trading update for the year ended 30 June 2023 and reaffirming market expectations for the full year. While the business faced a number of headwinds in H1, including an escalation in energy costs, wider inflationary costs and difficulties in securing shipping, alongside strike action at its Radcliffe plant, today's update illustrates continuing improving trends for the group. On the demand side, stronger demand for pure commercial ranges is reported to have provided a margin benefit in H2, with growth in the UK and Americas offsetting weaker demand in Central Europe. The group also reports a return to lower levels of stock, which had been raised strategically last year in response to supply chain constraints, leading to an improvement in cash balances at year-end. On the back of today's update, we raise our FY2023E PBT forecast to £52.0m/EPS 9.7p (from £50.1m/EPS 9.4p), leaving FY2024E and FY2025E unchanged for the time being. With cost pressures having eased from the heights seen in 2022, we see upside potential to our forecasts as conditions continue to normalise. We retain our fair value assessment of the shares at 280p.
James Halstead, the UK’s leading manufacturer of flooring for the commercial and public sectors, delivered a robust sales performance in the first half. Top-line trends have largely remained. Meanwhile, whilst costs remain elevated, pressures have begun to ease and gross margins have benefited. Consequently, James Halstead confirmed that its FY23 performance was in-line with expectations.
The announcement on Friday that the UK has finalised an agreement to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could provide an interesting development for James Halstead. The agreement, which follows more than 21-months of negotiations on quotas, standards and tariffs, sees the UK joining the CPTPP, whose membership consists of Australia, Canada, Japan, Mexico, New Zealand, Singapore, Brunei, Chile, Malaysia, Peru and Vietnam. Following the agreement, the UK government estimates that over 99 per cent of UK exports to the bloc will be eligible for zero tariffs.
James Halstead is a manufacturer and international distributor of commercial floor coverings. Interim results this morning illustrate a robust performance against the varied and numerous challenges faced during the six month period to 31 December 2022. Revenue in the period increased by 9.5%, this set against a lack of international shipping availability, high energy and raw material costs rendering the 8.6% reduction in PBT to £23.2m very creditable. Since the beginning of H2, demand has been positive, including sales in recent weeks in the UK and many export markets being described as ‘very encouraging', while the headwinds faced in H1 have either stabilised or improved. Following the results, we leave our forecasts unchanged. With the shares having fallen by 30%+ in the last 12 months and with pressures easing, we see this as an excellent entry point into this high quality global business. We see fair value for the shares at 280p.
James Halstead, the UK’s leading manufacturer of flooring for the commercial and public sectors, delivered a robust sales performance in the first half, with the top-line up 10%. As previously flagged, cost inflation headwinds continue, constraining near-term margins. Overall, we see the glass as half full and are leaving our full year forecasts unchanged.
James Halstead is a manufacturer and international distributor of commercial floor coverings. The group has this morning released a robust update for the six months to 31 December 2022, pointing to revenue growth of c.8-9% ahead of the comparative period, set against a lack of international shipping availability, high energy and raw material costs. Since December, JHD reports that it has seen international freight and raw material costs beginning to ease, with energy costs not increasing beyond historic highs previously experienced, while overall demand for its products remains positive. Following the update, we have left our earnings expectations unchanged while we increase our year-end net cash forecasts by c.£10m to reflect reducing stock levels. With the shares having fallen by 30%+ in the last 12 months and with pressures easing, we see this as an excellent entry point into this high quality global business. We see fair value at 280p.
James Halstead, the UK’s leading manufacturer of flooring for the commercial and public sectors, has issued a pre close update that is (modestly) more upbeat than the AGM update (issued 1 December). On the plus side, demand from commercial and public sector clients remains intact. On the negative, cost inflation headwinds continue. Overall, we see the glass as half full and are leaving our full year forecasts unchanged.
James Halstead is a manufacturer and international distributor of commercial floor coverings. The group has this morning provided an update to coincide with its AGM, pointing to continued robust demand in the commercial flooring market. Set against this, cost pressures continue, most notably in energy at the group's production facilities, while strike action at Radcliffe reduced production by an estimated eight weeks. On the back of the update, we have nudged our 2-year earnings expectations lower by 2.0% to reflect the various inflationary pressures. While the near-term backdrop will continue to present challenges, we believe that James Halstead is positioned extremely well to be able to continue to grow profitably and generate strong shareholder returns as a result of its business model and market position. We see fair value for the shares at 280p.
James Halstead, the UK’s leading manufacturer of flooring for the commercial and public sectors, has issued a mixed AGM update. On the plus side, demand from commercial and public sector clients remains intact. On the negative, cost inflation headwinds and supply chain uncertainty continue. Overall, we see the glass as half full and are leaving our full year forecasts unchanged.
James Halstead is a manufacturer and international distributor of commercial floor coverings. The group has this morning released full year results to 30 June, marginally ahead of our forecasts and illustrating a robust performance in the year against a highly challenging backdrop, with at least one global competitor falling into receivership during the period. The current financial year is reported to have started well, with both pricing and volumes moving higher but with the increase in energy and material costs needing to be carefully managed. On the back of the results, we have increased our revenue forecasts to take account of pricing increases, while we reduce our margin estimates commensurately, with our earnings expectations remaining unchanged. While the near-term backdrop will continue to present challenges, James Halstead is positioned extremely well to be able to continue to grow profitably and generate strong shareholder returns due to both its business model and market position. We see fair value for the shares at 280p.
In the 12 months to Jun-22 sales were higher than we expected, up +9.6% YoY. Meanwhile, a cautious stance on pricing and cost headwinds has constrained margins. Despite lower margins James Halstead delivered a record profit in FY22, which we had not forecasted. FY23 has started well, with pricing positive and volumes stable. Therefore, whilst we are cautious on margins, we are raising our pre-tax profit forecast from £51.1m to £52.2m (+2% upgrade).
James Halstead is a manufacturer and international distributor of commercial floor coverings. The group has this morning released a full year update, pointing to a continuation of the trends previously reported, in other words positive demand offset by margin pressures. Revenue in the year is reported to have moved 9-10% higher, which was set against the various logistical and inflationary challenges presented and management deliberately choosing to invest in stock to ensure demand can be met in an uncertain environment. Although the group is not immune from the various wider challenges, the decision to focus on volume and to increase stockholdings is, given the strength of the business and the balance sheet, very sensible in our view. On the back of the update we have adjusted our earnings estimates further to reflect the backdrop (FY 2022E EPS -4.2%, FY 2023E EPS -7.7%), while also reflecting the increased stock position (net cash £45.1m from £73.4m). Although the near-term backdrop
James Halstead delivered a slightly mixed FY22 pre-close update. In the 12 months to Jun-22 sales were higher than we expected, up 9-10% YoY. However, a cautious stance on pricing and cost headwinds have constrained margins. Consequently, we are increasing our FY22 sales forecast to £292m (+8% upgrade) and modestly reducing our FY22 PBT forecast to £50.7m (2% adjustment). It is important to appreciate this is still only 1% below FY21 profits, which were an all-time record for the group
James Halstead, the UK’s leading manufacturer of flooring for the commercial and public sectors, delivered a slightly mixed set of interim results. First half sales of £137m were a record for any six-month period. Meanwhile, manufacturing costs continue to constrain margins. That said, price rises should ensure they move higher in the second half.
James Halstead is a manufacturer and international distributor of commercial floor coverings. This morning, the group has provided a short H1 2022E update, pointing to the fact that demand since its AGM update in November has been robust, particularly in the UK, and across a diverse range of projects. As a result, H1 revenue in the six months to 31 December 2021 is expected to be ahead of the comparative period.
James Halstead, the UK’s leading manufacturer of flooring for the commercial and public sectors, has issued a slightly mixed pre close update. On the positive side, sales remain strong. On the downside, manufacturing costs continue to constrain margins. Despite these headwinds we continue to expect James Halstead to deliver full-year profits in line with expectations.
James Halstead is a manufacturer and international distributor of commercial floor coverings. This morning, the group has provided a brief update to coincide with its AGM, pointing to the fact that while challenges remain, revenue in the first four months of the current financial year has been ahead of the comparative period. In terms of sectors, of note is that after a very difficult 18-month period in leisure and hospitality, a more normalised level of replacement expenditure is now starting to come through.
James Halstead, the UK’s leading manufacturer of flooring for the commercial and public sectors, has issued a robust AGM update. Demand trends are positive, with improving activity in leisure and hospitality sectors. Meanwhile, supply chain disruption is easing. Given these trends, we continue to anticipate that these record levels of profitability will be (at least) maintained. Consequently, we reiterate our (recently upgraded) earnings forecasts.
Sabre Insurance Group : Reduced forecasts but an improved pricing outlook Analyst - Ming Zhu +44 (0)20 7886 2738 Recently, we have taken a more optimistic view on near-term UK motor insurance premium pricing, reflecting the unwinding of Covid-19 discounts. Sabre remains confident rates will increase further when the FCA pricing review has been fully implemented from 1 January 2022. We agree that Sabre should benefit from the overall pricing improvement along with increased new car sales and younger drivers as the current driving test backlog unwinds. However, given the performance post IPO, we believe that Sabre needs to demonstrate its capability of delivering the top-line growth in a rate hardening environment. We reiterate our Hold rating and lower our TP to 215p (from 240p) but continue to view Sabre as a possible acquisition target given the standout quality of its underwriting in the non-standard market. Read More... James Halstead : FY21 results Analyst - Adrian Kearsey +44 (0)20 7886 2763 James Halstead, the UK’s leading manufacturer of flooring for the commercial and public sectors, delivered a record performance in FY21. Top-line and earnings trends were helped by underlying demand and share gains. Given the strength of underlying demand and signs that raw material pricing is stabilising, we anticipate that these record levels of profitability will be (at least) maintained. Therefore, we are raising our FY22 PBT estimate from £50.3m to £52.3m. Please see our full report published 4th October 2021 or contact your Panmure Gordon representative for further details. Read More... Aston Martin Lagonda : Can China save the 2021 guidance? Analysts - Sanjay Jha +44 (0)20 7886 2805 & Lacie Midgley +44 (0)20 7886 2769 Following a Q3 pre-close call with the company, we are downgrading our P&L and cashflow forecasts for 2021. However, even this assumes that with Q3 deliveries/ASP impacted by temporary production shutdowns and mix, everything will go to plan in the normally heavily-weighted Q4 despite the near-term challenges faced by “ultra-luxury” brands in China. This does not change our long-term view that a weak balance sheet and highly uncompetitive cost of debt is not a platform for commercial and financial success. With net debt at end-21 expected to be higher than we previously forecast, our DCF model, which assumes that the EBITDA target of £500m will be met by FY25, now values the shares at 249p (340p) based on a terminal growth rate of 2% and a WACC of 6%. We continue to recommend SELL. Read More...
JHD SBRE AML
James Halstead is a manufacturer and international distributor of commercial floor coverings. The group has this morning released very strong full year results to 30th June 2021 with an EPS beat of 4.9% to our recently upgraded expectations. This reflected another record performance for the group, with the Board successfully steering the business to achieve profitable market share gains in what was a particularly challenging 12-month period brought about by the COVID-19 pandemic and its knock-on effects. As has historically been undertaken by Halstead to ensure liquidity in the shares, a bonus issue of one ordinary share for every share held will be proposed at the AGM. On the back of the results, we have raised our FY 2022E earnings estimate by 2.6%. Although Halstead is not immune from the various market challenges, the group is positioned extremely well in our view to be able to continue to grow profitably and generate strong shareholder returns as a result of both its business model and market positioning. We see fair value for the shares at 615p.
James Halstead, the UK’s leading manufacturer of flooring for the commercial and public sectors, delivered a record performance in FY21. Top-line and earnings trends were helped by underlying demand and share gains. Given the strength of underlying demand and signs that raw material pricing is stabilising, we anticipate that these record levels of profitability will be (at least) maintained. Therefore, we are raising our FY22 PBT estimate from £50.3m to £52.3m.
James Halstead is a manufacturer and international distributor of commercial floor coverings. The group has this morning released a highly creditable full year trading update to 30th June 2021, reflecting another record revenue and PBT performance, notwithstanding the various challenges faced in the last 12 months. While H2 2021E demand remained strong, input pricing, stock availability and self-isolation of employees all had to be extremely carefully managed in order to achieve this outcome. On the back of this morning's update, we have raised our FY 2021E revenue and PBT forecasts, resulting in a 2.2% uplift in our earnings expectation, while our year-end net cash estimate also moves £4.3m higher. Although Halstead is not immune from Covid-19 and other related market challenges, the group is positioned extremely well in our view to be able to continue to grow profitably and generate strong shareholder returns given both its business model and market positioning. We see fair value for the shares at 600p.
James Halstead, the UK’s leading manufacturer of flooring for the commercial and public sectors, delivered a record performance in FY21. Top-line and earnings trends were helped by underlying demand and share gains. Given the strength of underlying demand, we anticipate that these record levels of profitability will be maintained.
James Halstead is a manufacturer and international distributor of commercial floor coverings. The group has this morning released an encouraging set of interim results to 31 December 2020, slightly ahead of February's trading update, with a 3.3% increase in PBT to £26.0m and a net cash position of £74.4m at period end. A record interim dividend of 4.25p has been declared, putting the group on track to deliver yet another record year of dividend growth in FY 2021E. Whilst the current backdrop continues to present challenges, including through raw material supply and increased costs, overall demand remains robust, with the Board having continued confidence in the performance for H2 2021E. On the back of this morning's results, we have left our forecasts unchanged, our year-end net cash position assuming a return to more normalised stock levels. The shares trade on a PER of 28.5x falling to 26.7x and whilst Halstead is not immune from the current backdrop, these results further illustrate how robust the business is, delivering improved profitability and cash generation, even at the time of a global pandemic. We see fair value for the shares at 550p.
James Halstead is a manufacturer and international distributor of commercial floor coverings. The group has this morning released a robust H1 2021E update to 31 December 2020, reflecting a continued strong relative trading performance in the first six months of the current financial year against the present backdrop, which remains challenging, not least as a result of the various national lockdowns. Whilst margin pressures have been seen due to increases in raw material, manufacturing and distribution costs, Halstead expects to report H1 2021E PBT, at least in line with last year's record comparative performance. As such, on the back of this morning's update, we have left our forecasts unchanged. These illustrate a post-tax ROCE of 50%+, whilst we are forecasting a further strong increase in the net cash position throughout our forecast time horizon. Although the group is not immune from Covid-19 related challenges, the business is positioned extremely well in our view to be able to deliver even during these difficult times. We see fair value for the shares at 550p
James Halstead is a manufacturer and international distributor of commercial floor coverings. The group has this morning released an update to coincide with its AGM, covering the first four months of its current financial year. This demonstrates both a continued robust performance against the present backdrop, alongside the acquisition of a distribution business in Malaysia. The previously declared final dividend 10.0p will be paid on 11 December, resulting in another record full year dividend of 14.25p.
James Halstead is a manufacturer and international distributor of commercial floor coverings. The group has a particularly strong track record in delivering for shareholders over many decades and FY 2020A results again demonstrated another highly creditable performance against the current challenging backdrop. The group's strong focus on product design and innovation, in combination with highly rated customer service, has resulted in an enviable reputation for excellence in its expanding geographical markets. These factors have led to a multi-decade annual increase in the dividend for shareholders, underpinned by strong cash generation, which has again been achieved in what has been a particularly difficult period for the vast majority of businesses globally. With such a robust platform in place, we see more of the same being delivered in the years ahead and see fair value for the shares at 550p.
Solid interims – near term outlook uncertain
H1 20 trading update – UK growth, margin resilience
AGM statement – continuing to deliver
James Halstead’s FY19 prelims reported +1.4% y/y sales growth, a credible performance in our view given difficult trading conditions. Along with margin resilience (gross margins +110bps y/y), the group delivered ~3% y/y earnings growth, continuing its successful track record. We make small changes to our forecasts detailed below. At ~26x P/E on our FY20e earnings, we remain Neutral on the stock on valuation grounds alone. Financials results vs. our estimates. The group has reported revenue growth of +1.4% y/y (from “record volumes” and new launches) to £253m, broadly in line with our existing forecasts of £257m (cons: £256m). We see this as an being a creditable performance in a backdrop that has seen refurbishment spend being adversely impacted by business uncertainty.
James Halstead’s pre-close trading statement reflects underlying resilience within the group’s business, suggesting “modest growth” in sales and earnings (now at record levels) despite “difficult trading conditions.” Of significance, UK revenues are up 7% y/y (vs. our 5% estimate), which in the context of wider market uncertainty and a declining retail environment, demonstrates the benefits from a diverse customer base and growing momentum within the healthcare flooring sector. Despite competition in Europe (particularly in Germany), the group is confident of maintaining regional market share going forward. In line with our expectations, gross margin headwinds experienced in the prior year appear to have dissipated with input costs now stable and capacity for new product launches well-maintained.
Key points: Interims reported revenues of £126m (flat YoY), a 3.3% increase in PBT to £24.5m led by margin improvements, and a record dividend of 4.0p (+3.9% YoY, yield 3.3%). The group also saw a significant rise in net cash in the last 6m from £50.5m to £62.8m (Dec 18A) driven by strong FCF cash generation (c.88% FY19E) and favourable working capital inflows (which we expect to unwind in H2). We leave our forecasts unchanged (+3.8% sales growth, 19.6% operating margin), drawing confidence from a strong earnings performance in H1, a return to sales growth in H2 and growing market penetration from recent product launches. We continue to see attraction in the quality and low-risk nature of this business, and maintain our Buy rec (480p PT).
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James Halstead has reported FY18 results inline with our forecasts although revenue and recent trading had been provided at the pre-close update in July. We make small FY19 upgrades of c.3% on better operating costs although new products could also support a better top line as the year progresses. James Halstead continues to deliver for investors and new products should continue to underpin the Company’s market position. Maintain Add rating.
James Halstead has released a solid pre-close trading update ahead of its full year results. Sales for the year are ahead of the prior year despite somewhat difficult trading conditions with the Company highlighting good UK growth of 3% for the year, even with negative headlines around high street retail and cutbacks in expenditure. We expect underlying organic growth overall was at a similar level to the UK. Sales also benefited from the slightly stronger Euro Year-on-Year.
James Halstead reported a robust set of interim 2018 results with another record half-year of revenue and profit. The company reported Interim revenue of £126m (+5.4% YoY) and operating profit of £23.9m (+1.6% YoY). Reported EPS was 8.8p (+3.5% YoY) and the interim dividend has been increased to 3.85p, up 2.7% YoY. Net cash was £47.5m.
James Halstead Flash : Pre close update
James Halstead : Pre close update (29-Jan-2018)
Full year results from James Halstead confirm the business is performing well, with the business generating free cash flow of £34.0m (12% up on the average FCF for the last five years). Current trading has been strong “particularly in the UK” and management appear confident of delivering further earnings progression. Crucially these results will remind investors that James Halstead is a strong cash generator that rewards investors with healthy dividend distributions.
James Halstead, the UKs largest commercial flooring manufacture, has issued a “steady as you go” pre close update, covering the 12-months to Jun-17. Overall the tone is balanced: UK markets tough, raw material costs up offset by positive trading overseas. Despite these challenges in its home market, James Halstead is set to report “record turnover and profits for the year to 30th June”.
Interim results from James Halstead confirm the business is trading inline, with revenues +4.3%. Trading during 1H17 has undoubtedly benefited from the weakness of sterling, offsetting UK volume trends and pricing pressures. The business continues to generate solid cash flow, with FCF of £25.2m 1H17, consistent with 1H16. Another tick in the box.
James Halstead, the UK largest commercial flooring manufacturer, has issued a trading in-line pre close update, covering the six months to Dec-16. Overall the tone of the update is noticeably more upbeat than at the AGM. Revenue growth is firm and supply chain issues resolved. Therefore, whilst estimates remain unchanged, we are raising our TP from 465p to 550p. Our confidence is underpinned by a strong balance sheet (net cash £42.3m Jun-16) and strong cash flow.
On 30 September 2016, when the company announced its full year results, it reported that the UK business had seen a slow start to the year, with particular weakness in repair and renewal spending by the NHS as well as “reticence” in the education sector. However, with the UK only representing about a third of the business, this weakness was expected to be more than offset by the positive effect of a weakened sterling on its overseas business, given the benefits for competitiveness and margins.
Today James Halstead will be holding its 101st AGM. Trading during the first part of FY17 has been mixed, with some notable challenges. However, movements in FX (i.e. weak sterling) is boosting reported earnings, offsetting UK volume trends and pricing pressures. Whilst earnings are likely to be second half weighted, the picture is in-line with expectations and we are leaving our FY17 PBT estimates unchanged (£47.4m in FY17 vs £45.4m FY16).
Overview. Final results reflect a resilient performance against the background of headwinds from FX and challenging markets, with revenues down 0.5% to £226.1m (+2% constant FX) and profits before tax up 3% to £45.5m (Arden forecast: £46.5m). Cash generation remained very strong and the net cash at the year-end was £43.9m. The final dividend was increased 8.2% to 8.5p, leaving the full year dividend up 9.1% at 12.0p.
James Halstead, the UKs leading producer of commercial flooring, delivered profit growth of 3% in FY16 (despite FX headwinds). Highlights during the period included strong growth in France (+12.5% sales growth, CFX basis) and Australia (+7%). Free cash flow jumped 21.1% to £37.5m. Finally, the final dividend increased 8.2% to 8.5p.
James Halstead, the international vinyl flooring manufacturer, has issued a pre close update confirming that it is trading in-line. We are forecasting revenues to increase from £236m (FY16E) vs £227m (FY15) and PBT £45.4m (FY16E) vs £44.2m (FY16E). Following the payment of the special dividend we anticipate cash modestly contracts (£42.4m vs £49.5m).
James Halstead, the international vinyl flooring manufacturer, has delivered a solid set of interim results. FY16 has clearly started well, with revenues +2.9% (CFX basis). Margins also continue to trend higher (+186 basis points). Activity in the UK has recently softened but remains firm in most overseas territories and we are leaving our FY16 forecasts unchanged: PBT £45.4m, EPS 16.4 pence.
Interim results showed a resilient performance in the face of significant FX headwinds. Although reported revenues fell 2.1% to £114.7m, (+2.9% on a constant currency basis), PBT was up 7.5% to £23.0m, EPS increased 10.3% to 8.6p and the dividend has been increased by 11.4% to 3.5p.
James Halstead, the international vinyl flooring manufacturer, has issued an in-line trading update for the six months to Dec-15. FY16 has started well, with underlying revenues modestly ahead of the comparative period last year. Operational cash generation remains strong, adding further to the company's cash pile (£49.5m Jun-15).
James Halstead, the international vinyl flooring manufacturer, has issued a trading in-line AGM statement. FY16 has started well, with underlying revenues modestly ahead of the comparative period last year. Cash generation remains strong, adding further to the company's cash pile (£49.5m Jun-15). Therefore, the company has decided to celebrate its 100th AGM by announcing a special dividend of 7.858 pence per share, equal to the final dividend declared in September.
James Halstead is a manufacturer and distributor of durable PVC flooring products primarily for the commercial market (offices, schools, shops and hospitals) and also high-end consumer applications. The UK accounts for 37% of sales, Europe 40%, the Far East 15% and the RoW 8%.
James Halstead is celebrating its centenary year by announcing a record final dividend of 7.858p per share (+12.3%). This takes the full year dividend to 11p (+10%) and represents the 40th straight year of dividend growth. This distribution highlights the cash generative nature of the business (£204m of post capex cash generation over the last 10 years). Despite FX headwinds PBT increased 5.8% to £44.2m. At this stage we are leaving our FY16 unchanged, essentially looking for further expansion both domestically and abroad.
James Halstead is the UKs leading manufacturer of vinyl flooring, with the majority of it's >£200m sales going to the commercial and public sector segments. Growth has been remarkable, with sales +7.9% CAGR FY04-FY14. Over the same period, the company has generated £189m of free cash (despite investing in completely new production and warehousing). This has enabled management to return £182m to shareholders (FY04-FY14, via ordinary dividends, specials and buy-backs). Given the company is celebrating its centenary year (and it has surplus cash on the balance sheet) the chances of a special dividend being announced are high.
James Halstead is a manufacturer and distributor of durable PVC flooring products primarily for the commercial market (offices, schools, shops and hospitals) and also high-end consumer applications. The UK accounts for 35% of sales, Europe 43%, the Far East 15% and the RoW 7%.
