James Halstead (JHD) H2 2025 earnings summary

Executive summary

• Revenue declined 4.7% year-over-year to £262.0m, mainly due to headwinds in Europe and APAC, but UK and North America showed resilience and growth.

• Profit before tax was £55.1m, down 1.9% from last year, with gross margin improving to 44.5% from 44.1% due to manufacturing efficiencies and product mix.

• Cash balances remain strong at £68.4m despite a 7.9% reduction, and inventory levels decreased by 2.3% to £80.4m.

• The Board proposes a record final dividend of 6.05p, bringing the total annual dividend to 8.80p, up 3.5% year-over-year, marking the 49th consecutive year of dividend increases.

Financial highlights

• Revenue: £262.0m (2024: £274.9m), down 4.7% year-over-year.

• Profit before tax: £55.1m (2024: £56.2m), down 1.9% year-over-year.

• Gross margin improved to 44.5% (2024: 44.1%).

• Selling and distribution costs fell 7.8% to £48.8m; administration expenses rose 4.5% to £14.9m.

• Net cash from operations: £50.0m (2024: £64.8m).

• Earnings per share: 9.7p (2024: 10.0p).

Outlook and guidance

• Positive sentiment in North America and continued growth prospects in the UK.

• Central Europe remains subdued due to low customer confidence; cautious approach with tight cost control and conservative credit management.

• Overseas growth expected to continue, supported by robust UK market share.