James Halstead, the commercial flooring manufacturer, expects sales to grow in the year ahead, driven by increased government spending on education, healthcare, prisons and aged care.
The Bury-based company, which sells flooring under the Polyflor brand into more than 60 countries, raised prices at the start of its new financial year.
This was after absorbing a sharp rise in energy and raw material costs triggered by the Gulf conflict in the final months of its 2026 year.
Executive chairman Mark Halstead said the board remained confident in the group's prospects, supported by a strong balance sheet, prudent stock control and a leading market position.
The upbeat tone came despite a difficult year in which pre-tax profit fell 12.7% to £48.2 million on revenue of £259.9 million, broadly flat against £262 million a year earlier.
The results were held back by weak demand across UK and European repair and renewal markets, higher distribution and overhead costs, and disruption in the UK distribution channel.
This followed the financial difficulties of flooring group Headlam, which entered administration in September 2026 with no material impact on James Halstead's debt exposure.
Cash generation was a bright spot, with cash inflow from operating activities rising 37.4% to £49.1 million, leaving the group with cash of £75.7 million at the year end.
The company is proposing a final dividend of 6.10p per share, taking the full-year total to 8.95p and marking the company's 50th consecutive year of increased dividend.
