James Halstead Sales Ahead in Most Markets, But Energy Costs Increase

By Giulia Petroni

James Halstead PLC sales are ahead of this stage last year in most markets as commercial-flooring demand remains robust, however energy costs have increased significantly over the past year, Chairman Anthony Wild said Thursday ahead of the company’s annual general meeting.

Mr. Wild said that some of the company’s production lines at its Radcliffe site have been affected by strike action by a section of the workforce and haven’t produced for several weeks, yet energy costs have more than doubled compared with the previous-year period.

“This has not affected sales to any significant extent but has lessened our ability to take up some project opportunities in overseas markets that would have required a fast response in manufacturing,” Mr. Wild said.

The effects of the energy crisis on the supply of key materials from Europe hasn’t hit the company’s supply chain, although it still remains a risk for the winter, according to the chairman.

“These are very challenging times, especially here in the U.K., and we have tasked our teams to monitor costs and minimize cash outflows as high inflation lingers,” he said.

“In the short term, and against this current climate, there has obviously been margin erosion and we continue to pass on cost increases, as much as possible.”

Write to Giulia Petroni at giulia.petroni@wsj.com

Read More: James Halstead Sales Ahead in Most Markets, But Energy Costs Increase

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