James Halstead Says Profits Beating Expectations

Radcliffe, England, June 30, 2008--UK commercial flooring manufacturer and distributor James Halstead said profits for the year to June will be well ahead of market expectations.

The company said that growth in the UK market in the second six months of the year was maintained in the second half, despite problems in the commercial property sector.

“European markets have made further progress with the German market in particular putting in a strong trading performance. Our Australian subsidiary is also trading at record levels and other export markets have continued to expand,” according to a company statement.

As a result, it said profits would be “materially ahead of market expectations”.

The company, which makes the Polyflor and Performa brands, said energy costs and raw material prices were a concern, but said it remained “confident, but nevertheless vigilant and cautious, in this period of economic uncertainty”.

It added: “The Manchester factory has seen inevitable margin erosion on some product lines but overall the product mix and the continued outsourcing programme have enabled us to manage these pressures effectively.”