James Halstead (JHD) investor relations material

Executive summary

• FY26 was a difficult trading year: revenue declined 0.8% to £259.9m and profit before tax fell 12.7% to £48.2m.

• The proposed total dividend rose 1.7% to 8.95p per share, marking the 50th consecutive annual increase.

• Operating cash inflow increased to £49.1m from £35.7m, and year-end cash reached £75.7m.

Financial highlights

• Revenue was £259.914m versus £261.967m; gross profit was £115.829m versus £116.571m.

• Operating profit was £46.370m versus £52.821m; profit before tax was £48.161m versus £55.137m.

• Profit after tax was £35.423m versus £40.612m; basic and diluted EPS were both 8.5p versus 9.7p.

• Selling, distribution and administration costs totaled £69.5m versus £63.8m, up 9%; distribution, leases, business rates, payroll and marketing contributed to cost pressure.

Outlook and guidance

• FY27 sales prices were increased at the start of the financial year; core UK manufactured ranges are expected to grow as education, prisons, healthcare and aged-care refurbishment spending improves.

• Direct export markets remain positive, and management expects overseas business to increase profitability.

• The Board remains confident in the year ahead, supported by a strong balance sheet, cost and stock control, and a leading market position.

• Australia is targeting a return to profitability in FY27; New Zealand expects soft sentiment through calendar 2026, with early improvement anticipated in 2027.