Floor coverings provider James Halstead PLC (LON:JHD) whacked up its interim dividend by 7.1%, despite flat profits.
The interim dividend was hiked to a record level of 3.75p as chief executive Mark Halstead hailed “yet another record half year”.
Group turnover in the final six months of 2016 rose 4.3% to £119.6mln from £114.7mln, but profit before tax only edged up, to £23.2mln from £23.0mln the year before, as the group wrestled with rising raw material prices.
On the other hand, the benefits of weaker sterling on exports have been beneficial and exports recorded growth of just over 12%, which in constant currency would have been 2.5%.
This offset a 7% decline in UK turnover that the group believes is primarily the result of de-stocking in the UK.
“It is only a short period of time since the Brexit vote and confidence is high for us as exporters. The UK market is solid but there is inevitably upward price pressure on raw materials and overseas sourced goods. Overall this is counterbalanced by opportunities for overseas exports from a weaker sterling,” the company’s chairman, Geoffrey Halstead.
“Taking into account these points, and with the extremely positive feedback from our range re-vamps that have been presented to the trade at several major trade fairs we continue to be confident of progress through the year,” he added.
Shares in James Halstead were up 0.7% at 496p in lunchtime trading.