Interim Results

James Halstead PLC
28 March 2002

                                                                   28 March 2002


                               JAMES HALSTEAD PLC

            INTERIM RESULTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2001


                                  KEY FIGURES


James Halstead, manufacturer and international distributor of flooring:


      Pre-tax profit up to £ 5.358 million - an increase of 5.1%

      Net dividend per ordinary share up to 4.75p - an increase of 8%

      Earnings per ordinary share up to 13.10p - an increase of 12.8%

      Net assets per ordinary share up to 179.20p - an increase of 6%



Geoffrey Halstead, Chairman said 'The challenges of this business continue but I
believe our focus on investment, quality and our core products allows us to look
forward to the full year with confidence.'


Enquiries:           Mark Halstead, Chief Operating Officer

                     Gordon Oliver, Financial Director

                     Telephone:  [phone] on Thursday, 28 March 2002





CHAIRMAN'S STATEMENT



Trading Results

In difficult times it is pleasing to report, once again, record results for the
half-year ended 31 December 2001.

Turnover at £44.9 million is slightly below that of the comparative period last
year but this reduction reflects the disposal of Conway Products.  Pre -tax
profit has increased by 5.1%.

Over the last five years, very significant investment in manufacturing has taken
place.  We added PU coating to the higher added value products : Finesse,
Prestige and Mystique and developed Supratec as the top end of our range of
safety flooring. The acquisition of Objectflor (Germany), Polyflor Norge
(Norway), Halstead Flooring Concepts (New Zealand), Karndean (Germany), and the
joint ventures in other markets, have strengthened our presence in key markets.

The overall team at the Head Office remains no larger than it was a decade ago.

In the current climate we are happy with the progress made in this half-year.
There are areas where growth has not been significant, for example in Germany
where economic confidence is low, but new product launches are timetabled for
the next few weeks.  The motorcycle market has been very fragile after two large
retailers went into administration; but despite this, pre-season commitments in
the form of orders from customers are at a record level though our approach will
be prudent in this sector.



AIM

The recent move from the official list to AIM seems to have been well received
by our shareholders and it is our belief that there will be a greater attraction
to our shares from AIM investors where our market presence will be more
significant to that market.



Earnings per Share and Dividend

Earnings per share of 13.1p show an increase of 12.8%, reflecting both increased
profits and the cumulative effect of the purchase by the company of its own
shares.

We are increasing the dividend by 7.95% to 4.75p per ordinary share.  This will
be paid on 31 May 2002 to shareholders on the register as at 12 April 2002.

Once again, we will offer shareholders the opportunity of choosing to take new
fully paid ordinary shares in lieu of cash.



Accounting Policies

The adoption of the latest accounting standard, FRS 19 - Deferred Taxation, is
mandatory.  This increases our theoretical tax charge, but has no effect on cash
flows from taxation, and our commitment to reinvestment in plant continues.



Outlook

The challenges of this business continue, but I believe our focus on investment,
quality and our core products allows us to look forward to the full year with
confidence.



Geoffrey Halstead
Chairman
28 March 2002




Interim Report
For the half-year ended 31 December 2001

                                                              Half-year           Half-year              Year
                                                                  ended               ended             ended
                                                               31.12.01            31.12.00           30.6.01
                                                                                as restated       as restated
                                                                  £'000               £'000             £'000

Turnover                                                         44,889              45,288            93,541

Group profit on ordinary activities
(before taxation)                                                 5,358               5,098            10,689
Taxation                                                        (1,740)             (1,697)           (3,538)

Group profit on ordinary activities
(after taxation)                                                  3,618               3,401             7,151

Dividends:
Preference (5.5%) - non-equity                                      (6)                 (6)              (11)
Ordinary - equity                                               (1,302)             (1,314)           (3,686)

Retained profit                                                   2,310               2,081             3,454

Earnings per ordinary share of 10p:
- headline                                                       13.10p              11.61p            24.66p
- basic and fully diluted                                        12.84p              11.37p            24.16p

Net dividends per ordinary share                                  4.75p                4.4p            12.75p

Net assets per ordinary share                                   179.20p             169.12p           172.51p




Consolidated Balance Sheet
As at 31 December 2001

                                                               Half-year          Half-year             Year
                                                                   ended              ended            ended
                                                                31.12.01           31.12.00          30.6.01
                                                                                as restated      as restated
                                                                   £'000              £'000            £'000
Fixed assets
Intangible assets                                                  2,490              2,636            2,563
Tangible assets                                                   22,028             23,868           22,774

                                                                  24,518             26,504           25,337
Current assets
Stocks                                                            19,104             18,195           18,806
Debtors                                                           16,226             18,451           20,305
Cash at bank, in hand and on short-term deposits                  14,505              8,918           10,069

                                                                  49,835             45,564           49,180
Creditors - amounts falling due
within one year                                                 (22,122)           (18,684)         (22,453)

Net current assets                                                27,713             26,880           26,727

Total assets less current liabilities                             52,231             53,384           52,064

Creditors - amounts falling due after more than one
year                                                               (207)              (181)            (201)
Provisions for liabilities and charges                           (2,694)            (2,483)          (2,653)

                                                                  49,330            50,720            49,210
Capital and reserves
Equity share capital                                               2,742             2,987             2,841
Non-equity share capital                                             200               200               200

Called up share capital                                            2,942             3,187             3,041
Share premium account                                              3,766             3,317             3,766
Revaluation reserve                                                3,544             3,670             3,544
Capital reserve                                                      428               156               328
Profit and loss account                                           38,650            40,390            38,531

                                                                  49,330            50,720            49,210




Consolidated Cash Flow Statement
For the half-year ended 31 December 2001


                                                              Half-year           Half-year              Year
                                                                  ended               ended             ended
                                                               31.12.01            31.12.00           30.6.01
                                                                  £'000               £'000             £'000

Net cash inflow from operating activities                         9,436               8,229            15,851
Returns on investments and servicing of finance                     228                  80               214
Taxation                                                            136             (1,002)           (3,259)
Capital expenditure                                               (385)             (2,208)           (3,290)
Acquisitions and disposals                                            -                 187               582
Equity dividends paid                                           (2,372)             (2,300)           (3,140)

Cash inflow before use of liquid resources and
financing                                                         7,043               2,986             6,958

Management of liquid resources                                    (396)               (181)           (2,277)
Financing:
Purchase of own shares                                          (2,623)                   -           (2,684)

Increase in cash                                                  4,024               2,805             1,997

Reconciliation of net cash flow to movement in net
funds

Increase in cash                                                  4,024               2,805             1,997
Cash flow from change in liquid resources                           396                 181             2,277

Change in net funds resulting from cash flows                     4,420               2,986             4,274
Effect of exchange differences                                       16               (172)             (309)

Movement in net funds for the period                              4,436               2,814             3,965
Net funds at 30 June 2001                                        10,069               6,104             6,104

Net funds at 31 December 2001                                    14,505               8,918            10,069





Statement of Total Recognised Gains and Losses
For the half year ended 31 December 2001


                                                              Half-year           Half-year              Year
                                                                  ended               ended             ended
                                                               31.12.01            31.12.00           30.6.01
                                                                                as restated       as restated
                                                                  £'000               £'000             £'000

Profit for the financial period                                   3,618               3,401             7,151
Currency translation differences on foreign
currency net investments                                            (49)               (408)             (600)

Total recognised gains relating to the financial
period                                                            3,569               2,993             6,551
Prior year adjustment                                           (2,265)

Total recognised gains since the last report                      1,304





Reconciliation of Movements in Shareholders' Funds
for the half-year ended 31 December 2001

                                                              Half-year           Half-year              Year
                                                                  ended               ended             ended
                                                               31.12.01            31.12.00           30.6.01
                                                                                as restated       as restated
                                                                  £'000               £'000             £'000

Profit for the financial period                                   3,618               3,401             7,151
Dividends                                                       (1,308)             (1,320)           (3,697)

                                                                  2,310               2,081             3,454
Other recognised gains and losses relating to the
financial period                                                   (49)               (408)             (600)
Purchase of own shares                                          (2,141)                   -           (3,166)
New share capital subscribed                                          -                   -               475


Net increase in shareholders' funds for the                         120               1,673               163
financial period
Opening shareholders' funds (originally £51,475,000
before prior year adjustment of £2,265,000)                      49,210              49,047            49,047

Closing shareholders' funds                                      49,330              50,720            49,210

Equity shareholders' funds                                       49,130              50,520            49,010
Non-equity shareholders' funds                                      200                 200               200

                                                                 49,330              50,720            49,210



Notes to the Accounts

1.  Basis of preparation

The interim financial statements, which are unaudited, have been prepared on the
basis of accounting policies as set out in the annual report and accounts for
the year ended 30 June 2001, after giving effect to the adoption of FRS
19-Deferred Tax.


2.  Taxation

Taxation has been provided at the rate of 32.5% (2000: 33.3%). These figures are
post FRS 19, which has the effect of increasing the theoretical tax charge.


3.  Dividends

The interim dividend is payable on 31 May 2002 to those shareholders on the
register at the close of business on 12 April 2002. The preference dividend,
which was paid on 31 December 2001, is in respect of 5.5% cumulative preference
shares. The next preference dividend is payable on 30 June 2002 to those
preference shareholders on the register at the close of business on 24 May 2002.


4.  Calculation of earnings per ordinary share

                                                            Half-year           Half-year               Year
                                                                ended               ended              ended
                                                             31.12.01            31.12.00            30.6.01
                                                                              as restated        as restated
                                                                £'000               £'000              £'000

Profit on ordinary activities after taxation                    3,618               3,401              7,151
Preference dividend                                               (6)                 (6)               (11)

Basic earnings                                                  3,612               3,395              7,140
Goodwill amortisation charge                                       74                  74                147

Headline earnings                                               3,686               3,469              7,287

Weighted average number of ordinary shares                 28,146,307          29,872,443         29,553,763
in issue
Headline earnings per ordinary share                           13.10p              11.61p             24.66p
Basic and fully diluted earnings per                           12.84p              11.37p             24.16p
ordinary share


5.  Statutory accounts

The figures for the year ended 30 June 2001 are an abridged statement of the
group audited accounts for that year adjusted for the effect of the adoption of
FRS 19 - Deferred Tax. The audited accounts, containing an unqualified audit
report have been delivered to the registrar of companies.


6.  Copies of the interim results

Copies of the interim results have been sent to shareholders. Further copies can
be obtained from the company's registered office, Beechfield, Hollinhurst Road,
Radcliffe, Manchester M26 1JN.


7.  Prior year adjustment

The prior year adjustment, relating to the adoption of FRS 19 - Deferred Tax,
has changed previously reported results as follows:

                                               Half-year ended                    Year ended
                                                   31.12.00                        30.06.01
                                          as reported     as restated    as reported   as restated
                                                £'000           £'000          £'000         £'000
Profit and loss account:
Profit after taxation                           3,569           3,401          7,598         7,151
Profit retained                                 2,249           2,081          3,901         3,454
Balance sheet:
Debtors                                        17,954          18,451         19,917        20,305
Provisions for liabilities and                      -           2,483              -         2,653
charges
Profit and loss account                        42,376          40,390         40,796        38,531





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