James Halstead's first-half sales fall UK market remains subdued

(Sharecast News) - James Halstead said it expects to hit market forecasts with its full-year forecasts, though increased confidence in international markets has been offset by subdued activity in its core UK market. In a first-half trading update for the six months to 31 December, the company said that sales were slightly below last year with pre-tax profits comparable the year before.

Market conditions in the resilient sheet flooring markets, sold into the healthcare, education and other institutional sectors, have improved, with regional sales in the Middle East and the Americas "particularly buoyant".

However, UK sales were flat year-on-year with customers said to be revising their capital spend or deferring renewals, while distributors have been destocking.

"The company has experienced more caution following the incoming government's first budget and the subsequent changes to living wage and national insurance," James Halstead said.

Shares were down 1% at 172.75p by 0900 GMT.