Interim Results

James Halstead PLC
29 March 2004



                                                                   29 March 2004


                               JAMES HALSTEAD PLC

            INTERIM RESULTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2003


Key Figures

James Halstead, manufacturer and international distributor of flooring:


  • Pre-tax profit up to £6.528 million - an increase of 15.6%.

  • Net dividend per ordinary share up to 6.0p - an increase of 17.6%

  • Earnings per ordinary share up to 18.6p - an increase of 22%



Chairman, Geoffrey Halstead said:

'These record results are, I believe, testimony to solid foundations and
straightforward strategies.'


Enquiries:
                Mark Halstead, Chief Executive
                Gordon Oliver, Finance Director       Telephone : [phone]

                Nick Lyon - Hudson Sandler            Telephone : [phone]



                              CHAIRMAN'S STATEMENT

It gives me great pleasure to report, once again, record results for the
half-year ended 31 December 2003.

Turnover, at £53.3 million is 10% ahead of the comparative period last year, and
pre-tax profit has increased by almost 16%.

A good half-year's result!  The increase in turnover reflects the result of a
solid achievement by the sales forces we employ around the globe.  Whilst the
beneficial effects of exchange rates on exports from the UK account for some of
this sales growth, the greater effect is the increased sales of flooring
products in almost all of our markets.

Phoenix Distribution again made a satisfactory contribution to the Group result
and remains a good cash contributor to Group funds.


Share Buy Back

During the six months to December 2003 the Company made further share buy backs,
purchasing 634,500 shares at an average price of £2.94.  Given the cash
resources, dividend yield and subsequent share price movement, we are confident
that these modest buy backs have been beneficial to shareholders.


Earnings per Share and Dividend

Earnings per share of 18.6p show an increase of 22%, reflecting profits growth
and the effect of the purchase by the company of its own shares.

We are increasing the dividend by 17.6% to 6.0p per ordinary share, which, once
again, is a record level of interim dividend.


Outlook

The interim result has established a solid foundation for the full year results
and I fully expect to declare a final result that will consolidate this
commendable start to the year.



Geoffrey Halstead
Chairman
29 March 2004



Interim Report
for the half-year ended 31 December 2003

                                                                    Half-year             Half-year               Year
                                                                        ended                 ended              ended
                                                                     31.12.03              31.12.02            30.6.03
                                                                        £'000                 £'000              £'000

Turnover                                                              53,301                48,465             99,775

Group profit on ordinary activities
(before taxation)                                                      6,528                 5,645             12,211
Taxation                                                              (1,958)               (1,729)            (3,646)

Group profit on ordinary activities
(after taxation)                                                       4,570                 3,916              8,565


Dividends:
Preference (5.5%) - non-equity                                            (6)                   (6)               (11)
Ordinary - equity                                                     (1,523)               (1,313)            (3,786)


Retained profit                                                        3,041                 2,597              4,768

Earnings per ordinary share of 10p:
     - headline                                                         18.6p                 15.2p              33.6p
     - basic                                                            18.2p                 14.9p              33.0p
     - diluted                                                          18.1p                 14.8p              32.8p


Net dividends per ordinary share                                         6.0p                  5.1p              15.1p




Consolidated Balance Sheet
as at 31 December 2003

                                                                    Half-year             Half-year               Year
                                                                        ended                 ended              ended
                                                                     31.12.03              31.12.02            30.6.03
                                                                        £'000                 £'000              £'000

Fixed assets
Intangible assets                                                      2,650                 2,823              2,737
Tangible assets                                                       19,485                21,149             20,331

                                                                      22,135                23,972             23,068

Current assets
Stocks                                                                20,795                20,359             21,436
Debtors                                                               17,217                15,671             17,639
Cash at bank, in hand and on short-term deposits                      22,190                16,257             18,956

                                                                      60,202                52,287             58,031

Creditors - amounts falling due within one year                      (26,944)              (24,583)           (27,484)


Net current assets                                                    33,258                27,704             30,547
Total assets less current liabilities                                 55,393                51,676             53,615

Creditors - amounts falling due after more than one
year                                                                    (207)                 (175)              (204)

Provisions for liabilities and charges                                (1,662)               (1,886)            (1,960)

                                                                      53,524                49,615             51,451
Capital and reserves
Equity share capital                                                   2,507                 2,576              2,543
Non-equity share capital                                                 200                   200                200

Called up share capital                                                2,707                 2,776              2,743
Share premium account                                                  5,153                 4,442              4,442
Revaluation reserve                                                    3,544                 3,544              3,544
Capital reserve                                                          720                   623                656
Profit and loss account                                               41,400                38,230             40,066

                                                                      53,524                49,615             51,451




Consolidated Cash Flow Statement
for the half-year ended 31 December 2003

                                                                    Half-year             Half-year               Year
                                                                        ended                 ended              ended
                                                                     31.12.03              31.12.02            30.6.03

                                                                        £'000                 £'000              £'000

Net cash inflow from operating activities                              9,207                 9,665             17,261
Returns on investments and servicing of finance                          287                   194                397
                                                                         
Taxation                                                              (1,998)               (1,541)            (3,838)
Capital expenditure                                                     (636)                 (915)            (1,626)
Equity dividends paid                                                 (2,507)               (2,348)            (3,645)


Cash inflow before financing                                           4,353                 5,055              8,549


Financing:
Purchase of own shares                                                (1,882)               (2,575)            (3,505)
Shares issued                                                            739                    20                 76

Increase in cash                                                       3,210                 2,500              5,120

Reconciliation of net cash flow to movement in net
funds

Increase in cash                                                       3,210                 2,500              5,120


Change in net funds resulting from cash flows                          3,210                 2,500              5,120

Effect of exchange differences                                            24                     2                 81


Movement in net funds for the period                                   3,234                 2,502              5,201
Net funds at 30 June 2003                                             18,956                13,755             13,755


Net funds at 31 December 2003                                         22,190                16,257             18,956






Statement of Total Recognised Gains and Losses
for the half-year ended 31 December 2003


                                                                    Half-year             Half-year               Year
                                                                        ended                 ended              ended
                                                                     31.12.03              31.12.02            30.6.03

                                                                        £'000                 £'000              £'000

Profit for the financial period                                        4,570                 3,916              8,565
Currency translation differences on foreign currency
net investments                                                          175                   (82)               513
                                                                         

Total recognised gains relating to the financial period                4,745                 3,834              9,078

                                                                       






Reconciliation of Movements in Shareholders' Funds
for the half-year ended 31 December 2003

                                                                    Half-year             Half-year               Year
                                                                        ended                 ended              ended
                                                                     31.12.03              31.12.02            30.6.03
                                                                        £'000                 £'000              £'000

Profit for the financial period                                        4,570                 3,916              8,565
Dividends                                                             (1,529)               (1,319)            (3,797)


                                                                       3,041                 2,597              4,768
Other recognised gains and losses relating to the
financial period                                                         175                   (82)               513
                                                                         
Purchase of own shares                                                (1,882)               (2,575)            (3,505)
New share capital subscribed                                             739                    76                 76

Net increase in shareholders'funds for the financial
period                                                                 2,073                    16              1,852
                                                                      
Opening shareholders' funds                                           51,451                49,599             49,599


Closing shareholders' funds                                           53,524                49,615             51,451


Equity shareholders' funds                                            53,324                49,415             51,251
Non-equity shareholders' funds                                           200                   200                200

                                                                      53,524                49,615             51,451

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 2003.


2.      Taxation

Taxation has been provided at the rate of 30.0% (2002: 30.6%).


3.      Dividends

The interim dividend is payable on 27 May 2004 to those shareholders on the
register at the close of business on 30 April 2004.  The preference dividend,
which was paid on
31 December 2003, is in respect of 5.5% cumulative preference shares.  The next
preference dividend is payable on 30 June 2004 to those preference shareholders
on the register at the close of business on 21 May 2004.


4.      Calculation of earnings per ordinary share


                                                               Half-year              Half-year                    Year
                                                                   ended                  ended                   ended
                                                                31.12.03               31.12.02                 30.6.03

                                                                   £'000                  £'000                   £'000

Profit on ordinary activities after taxation                      4,570                  3,916                   8,565
                                                                  
Preference dividend                                                  (6)                    (6)                    (11)


Basic earnings                                                    4,564                  3,910                   8,554
Goodwill amortisation charge                                         86                     86                     172


Headline earnings                                                 4,650                  3,996                   8,726


Weighted average number of ordinary shares in
issue                                                        25,048,866             26,322,045              25,960,207
                                                           
Weighted average number of ordinary shares in
issue (diluted for the effect of outstanding
share options)                                               25,191,875             26,437,071              26,083,850


Headline earnings per ordinary share                               18.6p                  15.2p                   33.6p
Basic earnings per ordinary share                                  18.2p                  14.9p                   33.0p
Diluted earnings per ordinary share                                18.1p                  14.8p                   32.8p




5.      Statutory accounts

The figures for the year ended 30 June 2003 are an abridged statement of the
group audited accounts for that year.  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.



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