James Halstead (JHD) investor relations material

Executive summary

• Revenue for H1 2026 was £127.2 million, down 2.2% year-over-year, with operating profit at £23.6 million, a 12.8% decrease compared to H1 2025.

• Despite challenging markets, margins remained strong and a record interim dividend of 2.85p per share was declared, up 3.6% from the prior year.

• Strong cash inflow from operations at £36.9 million, up 45.8% year-over-year, and cash at bank increased to £70.8 million.

• UK sales rose 1% and now represent 44.25% of turnover, while USA, Canada, and Africa saw double-digit growth.

• Investment in energy efficiency and product innovation continued, including new product launches and capex projects.

Financial highlights

• Revenue: £127.2 million (2024: £130.1 million), down 2.2% year-over-year.

• Operating profit: £23.6 million (2024: £27.1 million), down 12.8% year-over-year.

• Pre-tax profit: £24.7 million (2024: £28.5 million), down 13.3% year-over-year.

• Basic EPS: 4.4p (2024: 5.0p).

• Cash at period end: £70.8 million (2024: £63.7 million).

Outlook and guidance

• UK sales rebounded in early 2026 after a slowdown at year-end, with improved market sentiment.

• Ongoing demand in core markets supports confidence in medium-term prospects despite short-term challenges.

• Inflationary pressures expected from raw material, energy, and transportation costs, particularly due to Middle East issues.