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(Sharecast News) - Commercial flooring specialist James Halstead reported a 9.4% decline in full-year revenue on Tuesday, to £274.9m, down from £303.6m in 2023, due to challenging market conditions.
The AIM-traded firm said that despite the lower revenue, profit before tax rose 7.9% to £56.2m, up from £52.1m in the prior year, driven by improved gross margins and operational efficiency.
Its gross margin increased by 6% to 44%, compared to 38% a year earlier, reflecting strong performance across major markets.
Profit after tax saw a slight decline, of 2.1% to £41.5m, while earnings per share were down 2% at 10p.
Despite the minor declines, James Halstead proposed a final dividend of 6p per share, a 4.3% increase from 2023.
James Halstead also reported a strong cash position, with cash reserves rising to £74.3m on 30 June, compared to £63.2m at the end of 2023.
The company said it continued to invest in its operations, with key investments including a £0.35m upgrade to its Riverside facility, a £0.2m modern lighting overhaul at its Royton site, and preparatory work for a £0.4m solar panel installation at its Radcliffe site.
It said it expanded its international presence, securing significant new business in markets such as the UAE, Colombia, Iceland, Italy, Mexico, Poland, Greece, and South Africa, supported by the completion of several major projects.
Looking ahead, the board said it was optimistic about the company's future, citing a positive outlook for the coming financial year.
"2024 has been a largely positive year against the challenging economic backdrop with frustrations and further disruption to global trade routes," said chief executive officer Mark Halstead.
"Our proposed dividend continues our unbroken chain of dividend payment increases from 1974.
"We have continued to invest in process improvement as well as product development to improve output efficiency and our product offering."
Halstead said that had been "substantial", adding that he was "pleased" it had 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.
"We look ahead to 2025 in good stead and after delivering another year of profits growth."
At 0939 BST, shares in James Halstead were up 0.99% at 178.75p.
Reporting by Josh White for Sharecast.com.
