Highlights

  • James Halstead's revenue in FY24 decreased by 9.4% YoY, impacted by market challenges and trade disruptions
  • In FY24, gross profit rose 4.9% YoY, driven by higher plant utilisation and extended production hours
  • Company reported a gross margin of 44.1% in FY24, outperforming the industry median of 38.7%
  • James Halstead’s turnover grew nearly 300% since 2001, with profit rising 525% over the same period

James Halstead PLC (LSE:JHD), a prominent member of the FTSE AIM UK 50 Index, is a UK-based leader in producing and distributing floor coverings worldwide. Its operations span across the UK, Europe, Scandinavia, Australasia, Asia, and other global markets.

The company continued investment in its operations, such as updating Riverside's drive system (GBP 350,000), installing LED lighting at Royton (GBP 200,000), and preparing for solar panel installation at Radcliffe (GBP 400,000). It also secured notable business in several countries, strengthening its global market footprint.

In the financial year 2024 (FY24), James Halstead reported revenue of GBP 274.88 million, down 9.4% from GBP 303.56 million in FY23, reflecting challenges in the UK and European markets, along with disruptions in global trade routes, especially in the Red Sea, which affected sales and increased freight costs.

In FY24, gross profit increased by 4.9%, reaching GBP 121.12 million, compared to GBP 115.46 million in FY23. It was driven by improved plant utilisation and higher output volumes as manufacturing plants operated for longer hours.

Furthermore, the company demonstrated improved profitability and higher liquidity, with a gross margin of 44.1% and a current ratio of 3.34x in FY24, compared to the industry median of 38.7% and 1.68x, respectively.

Company Outlook

James Halstead achieved profitable growth in FY24, showcasing the strength of its products and strategy. Outgoing Chairman Anthony Wild emphasized strong global opportunities, despite challenges in the UK and Europe. Since 2001, turnover rose nearly 300%, and profit grew 525%. With healthy foundations, the company is optimistic about future growth.

Top 10 Shareholders

The top 10 shareholders of JHD own about 42.39% of total shares. John Halstead Settlement Limited holds the largest stake, with approximately 17.01%. Octopus Investments Limited follows, holding around 6.50% of the shares.

Stock Performance

 The stock price of JHD has dropped approximately 5.17% over the past month and around 7.93% over the last six months. Its 52-week low is GBX 166.50, while the high is GBX 210.00. Currently, the stock is trading below the average of these two values, with a closing price of GBX 174.00 as of 13 January 2025.

 Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 13 January 2025. The reference data in this report has been partly sourced from EODHD/Others.