James Halstead (JHD) investor relations material

Executive summary

• FY26 revenue declined 0.8% to £259.9m; PBT fell 12.7% to £48.2m as higher overheads and late-year input and distribution costs outweighed resilient gross margins.

• UK manufactured product volumes and sales in several export markets advanced, while Europe and Australasia remained weak; UK sales were also affected by tighter credit limits for a major distributor.

• Cash rose to £75.7m and operating cash inflow reached £62.1m; the proposed 8.95p dividend marks a 50th consecutive annual increase, despite cover falling below 1.

Financial highlights

• Revenue was £259.9m versus £262.0m, down 0.8%; gross profit was £115.8m versus £116.6m.

• Operating profit was £46.4m versus £52.8m; PBT was £48.2m versus £55.1m, down 12.7%.

• Net profit attributable to shareholders was £35.4m versus £40.6m; basic and diluted EPS were 8.5p versus 9.7p.

• Selling, distribution and administration costs rose 9.0% to £69.5m; the tax charge was £12.7m and the effective tax rate was 26%.

• Cash inflow from operations was £62.1m versus £50.0m; cash and cash equivalents ended at £75.7m versus £68.4m.

Outlook and guidance

• Sales prices increased at the start of FY27 to address higher raw material, energy and freight costs.

• Expectations include UK sales growth as education, prisons, healthcare and aged-care refurbishment spending improves, plus further direct-export growth and improved overseas profitability.

• Australia is targeting a return to profitability in FY27 through stronger sales execution, customer engagement, competitiveness and cost control.

• New European products launched in Q1 FY27 are intended to compete in the lower-priced click-product market.