Final Results

James Halstead PLC
2 October 2001


                                                                2 October 2001

                              JAMES HALSTEAD plc


           PRELIMINARY ANNOUNCEMENT OF AUDITED RESULTS FOR THE YEAR

                              ENDED 30 JUNE 2001


KEY FIGURES

*           Pre-tax profit up to £10.69m - 7.5% increase

*           Headline earnings per ordinary share up to 26.2p (22.8p) - 14.9%
            increase

*           Final dividend per ordinary share of 8.35p (7.7p) making a total
            for the year of 12.75p - 8.5% increase



Geoffrey Halstead, Chairman, James Halstead plc said: 'The achievement of
record levels of sales,exports, profit, earnings per share and dividend is a
testimony to the performance of the whole management who have worked hard and
as a team.'


Enquiries:        Mark Halstead, Chief Operating Officer

                  Gordon Oliver, Finance Director

Telephone:        [phone]



                              JAMES HALSTEAD plc

                 PRELIMINARY ANNOUNCEMENT OF AUDITED RESULTS

                       FOR THE YEAR ENDED 30 JUNE 2001



                 STATEMENT BY THE CHAIRMAN, GEOFFREY HALSTEAD



Results

I am very pleased to be able to report that pre-tax profits for the year have,
yet again, improved.  The profit on ordinary activities was £10.69 million, an
increase of 7.5%.  The turnover has increased by to £93.54 million.



Dividend

Your board proposes a final dividend of 8.35p per ordinary share making a
total for the year of 12.75p, an increase of 8.5%.



Acknowledgements

I would like to note my appreciation to the management and staff, without
whose efforts the continuing performance would not have been achieved.



I would also like to acknowledge the service of Mr V E Clare who stepped down
as Chairman at the end of last year after 16 years of service.



Outlook

Our flooring interests continue to grow steadily against a competitive
environment and I am confident of another year of steady results.



G Halstead

Chairman



                               OPERATING REVIEW


We can report another year of continued progress with group turnover rising to
£93.5 million and profit before tax of £10.7 million. This growth is
predominantly attributable to our flooring operations where almost all our
subsidiary companies have improved their contribution to group profitability. 
Flooring represents by far the bulk of group turnover, and it is pleasing to 
report that sales in this sector of our business increased by 5.1% (after 
excluding the effect of exchange rate fluctuations). Our market performance 
measured against both UK and European competitors was particularly strong.



The new product launches, referred to last year, have gone particularly well,
with our new Polysafe coated products setting the standard for easy
maintenance slip resistant floor coverings.



As reported last year, JHT Limited has now been integrated into Polyflor
Limited  with resultant savings in overhead costs and the benefits of synergy
between the two businesses. The luxury tile market continues to expand and
contributes an increasing amount to group profitability.



A change in the structure of the group during the year was the disposal of the
business and assets of Conway Products Limited.



We wish the new owners and the Conway workforce every success for the future.



POLYFLOR LIMITED  (the UK core business)

Sales in this company enjoyed a particularly successful year in both home and
export markets. This increase in sales, achieved in almost universally
difficult market conditions is distinctly laudable. Particularly noteworthy is
the success of our export sales which, in value terms, increased by 8.5%; this
after taking account of the strength of sterling.





The introduction of Polysafe Supratec was one of the most successful product
launches in the company's history. All objectives for the home market were
surpassed, and Polyflor's position as market leader was re-affirmed, with
safety flooring market penetration strengthening.



During the year we have also instituted key product development initiatives
with compatible partners in the flooring industry. As a result, Polyflor now
has several new products coming to the market, which are sourced from other
manufacturers. Adapting and extending our market renowned technical resources
is an important part of these joint venture arrangements, as they offer
significant territorial and commercial advantages to the group.



Following the integration of JHT into Polyflor during the year, the JHT range
of Expona luxury tiles has been totally re-engineered and well received by the
design community. A dedicated sales team has been formed to exploit the
various niche markets for this product.



During the year significant capital expenditure was incurred on the plant to
enable us to extend the surface coating of our products. This led to the
launch of a revitalised range of low maintenance non-directional flooring in
September 2001. These products can now be manufactured on the majority of
manufacturing lines.



In our manufacturing operation, several management changes were made during
the year, specifically in the engineering, production and technical areas.
These changes proved to be a significant contributory factor in increased
productivity and greater manufacturing efficiency. Improvements to our
internal processes are subject to a continual review, and enable us to offset
some of the effects of currency fluctuations on our export sales effort. These
efficiencies have been made without in any way compromising our environmental
and health and safety responsibilities.





OBJECTFLOR ART & DESIGN BELAGS GmbH  (the German company)

This company enjoyed its most successful year.  Sales volume, margins and
profitability,  increased by almost 10% in a difficult market. Objectflor
provided many of the resources required for the successful re-launch of the
Expona commercial ranges where substantial investment was made in promotional
and point of sale materials.



HALSTEAD FLOORING CONCEPTS (the New Zealand company)

The performance of this company fell short of expectations in the year. Sales
of Polyflor products increased but a difficult retail market resulted in
reductions in cushion vinyl and underlay sales. These market conditions have 
been evident for some time and our introduction of luxury tiles has, to some 
extent, compensated for the decline in other products.



Margins and bottom line profitability however remain satisfactory and are
providing a good return on our original investment.



POLYFLOR AUSTRALIA (the Australian company)

Satisfactory progress is reported from this company, which saw an increase in
sales of 8%. The introduction of General Sales Tax in Australia had the effect
of arresting the market for three months in the early part of the year.



Bottom line profitability was slightly below expectations, largely caused by
inflationary cost increases in the area of distribution.



Once again, the introduction of new products, sourced from the Group played an
important part in this company's progress.



PHOENIX DISTRIBUTION (NW) LTD (the distributor of motor cycle accessories)

This company completed a year of consolidation, maintaining its position as
one of the UK's leading distributors of motorcycle accessories. Greater focus
on brand development, in particular the premier helmet brand, Arai, proved
beneficial.




As with other leisure markets the motorcycle retail sector has faced
rationalisation and increased competitive pressure.



Turnover on continuing brands increased, but adverse currency movements had
the effect of eroding the margin, which in turn fed through to bottom line
profitability. However, this subsidiary was responsible for generating cash in
excess of £2 million.



This company, once again, was awarded the wholesaler of the year by Motor
Cycle News.



Looking to the future, Phoenix has developed  and continues to build upon
several unique partnership arrangements to promote an increase in business and
we believe that Phoenix is well placed to meet the challenges ahead.



TITAN CPL LIMITED (FORMERLY CONWAY PRODUCTS LIMITED) (manufacturer of folding
campers and trailers)

The Conway business was disposed of in the year. This company has contributed
to Group profits for nearly twenty years, albeit modestly. It has been
increasingly difficult to attract management into this industry, and concerted
efforts were made to sell this business to a buyer who could unlock
synergistic opportunities. A sale was scheduled to complete on 6 November
2000.



Unfortunately the company suffered a small but significantly disabling fire on
the 4 November, caused by an electrical fault. Without complementary resources
it was difficult to foresee Conway re-commencing production, and having been
on the point of disposal, it was clear that insurance recoveries would be
based upon disposal proceeds.



The Group Board could not divert management from other businesses and had no
alternative production facilities. Therefore a buyer was sought who could get
the business back into production. The alternative of closure was considered,
but from ten parties who expressed an interest, a local manufacturer was found
who possessed the facilities, which could, under their ownership, bring Conway
back into the market.



OUTLOOK

Our Australian and New Zealand businesses have been made the subject of
greater local control with the appointment of a managing director to
accelerate the introduction of new products, and provide greater impetus to
further growth.



We continue to make a significant investment in management, operating
facilities and point of sale material, the objective of which is to further
enhance the future prospects of our flooring business.





M Halstead

Chief Operating Officer




Audited Consolidated Profit and Loss Account
for the year ended 30 June 2001

                                                              2001        2000
                                                             £'000       £'000

Turnover
Continuing operations                                       93,541      91,935
Discontinued operations                                          -         886
                                                            93,541      92,821

Operating profit
Continuing operations                                       10,467       9,832
Discontinued operations                                          -        (119)
                                                            10,467       9,713

Net interest receivable                                        222         233

Profit on ordinary activities before taxation               10,689       9,946

Taxation on ordinary activities                             (3,091)     (3,033)

Profit on ordinary activities after taxation                 7,598       6,913

Dividends (including non-equity)                            (3,697)     (3,537)

Retained profit for the year                                 3,901       3,376

Earnings per ordinary share

 (as defined in Note 4)
 - headline                                                   26.2p       22.8p
 - basic and fully diluted                                    25.7p       22.3p






Audited Consolidated Balance Sheet
as at 30 June 2001

                                                             2001        2000
                                                            £'000       £'000
Fixed assets
Intangible assets                                           2,563       2,710
Tangible assets                                            22,774      22,950

                                                           25,337      25,660

Current assets
Stocks                                                     18,806      20,915
Debtors                                                    19,917      20,055


Cash at bank, in hand and on short-term deposit            10,069       6,104

                                                           48,792      47,074
Creditors - amounts falling due within one year           (22,453)    (21,674)

Net current assets                                         26,339      25,400


Total assets less current liabilities                      51,676      51,060

Creditors - amounts falling due after more than
one year                                                    (201)       (195)

                                                           51,475      50,865

Capital and reserves
Equity share capital                                        2,841       2,987
Non-equity share capital                                      200         200

Call up share capital                                       3,041       3,187

Share premium account                                       3,766       3,317
Revaluation reserve                                         3,544       3,670
Capital reserve                                               328         156
Profit and loss account                                    40,796      40,535

                                                           51,475      50,865



Statement of Total Recognised Gains and Losses
for the year ended 30 June 2001

                                                                  2001    2000
                                                                 £'000   £'000

Profit for the financial year                                    7,598   6,913
Currency translation differences on foreign currency net
investment                                                        (600)   (419)


Total recognised gains relating to the year                      6,998   6,494



Reconciliation of Movements in Shareholders' Funds

 for the year ended 30 June 2001
                                                                  2001    2000
                                                                 £'000   £'000

Profit for the financial year                                    7,598   6,913
Dividends                                                       (3,697) (3,537)
                                                                 3,901   3,376

Other recognised gains and losses relating to the  year           (600)   (419)
Purchase of own shares                                          (3,166) (2,536)
New share capital subscribed                                       475     407


Net increase in shareholders' funds for the year                   610    828

Opening shareholders' funds                                     50,865  50,037

Closing shareholders' funds                                     51,475  50,865

Equity shareholders' funds                                      51,275  50,665
Non-equity shareholders' funds                                     200     200
                                                                51,475  50,865




Audited Consolidated Cash Flow Statement
for the year ended 30 June 2001
                                                              2001       2000
                                                             £'000      £'000

Net cash inflow from operating activities                   15,851     10,910

Returns on investments and servicing of finance                214        223

Taxation paid                                               (3,259)    (3,566)

Capital expenditure                                         (3,290)    (4,097)

Acquisitions and disposals                                     582      1,665

Equity dividends paid                                       (3,140)    (3,041)

Cash inflow before use of liquid resources and
financing                                                    6,958      2,094

Management of liquid resources                              (2,277)    (2,535)

Financing:
Purchase of own shares                                      (2,684)    (2,536)
Repayment of loans                                               -       (518)


Increase/(decrease) in cash                                  1,997     (3,495)

Reconciliation of net cash flow to movement in
net funds
Increase/(decrease) in cash                                  1,997     (3,495)
Cash flow from decrease in debt                                  -        518
Cash flow from change in liquid resources                    2,277      2,535

Change in net funds resulting from cash flows                4,274       (442)
Effect of exchange differences                                (309)       (54)

Movement in net funds for the period                         3,965       (496)


Net funds as at 30 June 2000                                 6,104      6,600


Net funds as at 30 June 2001                                10,069      6,104




                                    NOTES

1.                  The final dividend of 8.35p per share will be paid on 7
December 2001 to shareholders on the register as at 2 November 2001.  The full
report and accounts will be posted to shareholders on 1 November 2001.



2.                  The financial information on pages 8 to 12 does not
represent the statutory accounts of the group.  Statutory accounts for the
year ended 30 June 2000 have been delivered to the Registrar of Companies,
carrying an unqualified audit report and no statement under S.237 (2) or (3)
Companies Act 1985.



3.                  Statutory accounts for the year ended 30 June 2001 have
not yet been delivered to the Registrar of Companies.  They will carry an
unqualified audit report and no statement under S.237 (2) or (3) Companies Act
1985.



4.           Calculation of earnings per ordinary share      2001       2000
                                                            £'000      £'000

             Profit on ordinary activities after taxation   7,598      6,913

             Preference dividend                              (11)       (11)

                                                           -------    -------

             Net earnings                                   7,587      6,902


             Goodwill amortisation charge                     147        151

                                                           -------    -------

             Headline earnings                              7,734      7,053

                                                           -------    -------

             Weighted average number of ordinary
             shares in issue                           29,553,763 30,999,695

             Headline earnings per ordinary share           26.2p      22.8p
             Basic and fully diluted earnings
             per ordinary share                             25.7p      22.3p





5.         The disposal of the business and assets of Conway Products Limited
took place on 1 March 2001 and has not been presented as a discontinued
operation as it did not represent a material business segment nor is the
impact of the disposal material to the group figures.