Shares in James Halstead fall following trading update

Shares in AIM-listed flooring company James Halstead fell 5.75 per cent to 598p on Friday afteroon following a trading update published ahead of its annual general meeting.

Geoffrey Halstead, Chairman of the company, gave an update on trading five months into the company's current financial year, revealing that business in some overseas territories were trading below levels seen last year.

Some large infrastructure projects were progressing at a slower pace with frequent delays, however flooring sales levels were ahead of last year's, he said.

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Halstead said: "In the UK, the general economic climate continues to be challenging but I can report that for the five months of the current year our flooring sales are ahead of last year.

"The greater part of our business trades globally and overseas we continue to achieve record sales in some key territories whilst others, most notably Australia, are trading below last year. It is apparent in several markets that large infrastructure projects are progressing but at a slower pace and with frequent delays.

Notwithstanding the above, owing to the combined benefits of softer raw material prices and a bias of sales toward higher value and margin product we are on track to surpass the comparative profit of last half year."

He added: "I stress that market conditions are difficult and though we have grown over the last few years in difficult conditions this year will, in our view, continue to be tough".

The AIM-listed company has a market capitalisation of £604.45m.

MF