James Halstead (JHD) H1 2025 earnings summary

Executive summary

• Achieved strong H1 profitability with record interim dividend and solid margins despite challenging markets.

• Revenue declined 4.7% year-over-year to £130.1m, but operating profit rose 3.2% to £27.1m and pre-tax profit increased 3.9% to £28.5m.

• Basic EPS improved to 5.0p from 4.8p; interim dividend up 10% to 2.75p per share.

• Cash position remains robust at £63.7m, supporting ongoing investment and dividend growth.

Financial highlights

• Revenue: £130.1m (2023: £136.5m); Operating profit: £27.1m (2023: £26.2m); Pre-tax profit: £28.5m (2023: £27.4m).

• Gross margin improved to 44.8% (2023: 43.8%) due to raw material and energy cost stabilization.

• Overheads reduced by 7% year-over-year, mainly from cost controls and lower distribution costs.

• Cash inflow from operations was £25.3m, down from £33.6m, mainly due to increased inventories.

• Cash and cash equivalents at period end: £63.7m (2023: £62.4m).

Outlook and guidance

• H2 has started well with January 2025 UK sales up 9% year-over-year.

• Anticipates improved demand as government spending resumes and UK housing sector reforms take effect.

• Confident in another year of progress, supported by global project pipeline and established market presence.