Interim Results

James Halstead PLC
30 March 2005

                                                                   30 March 2005


                               JAMES HALSTEAD PLC

            INTERIM RESULTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2004

Key Figures

James Halstead plc, manufacturer and international distributor of flooring:

-         Pre-tax profit up to £6.954 million - an increase of 6.5%

-         Net dividend per ordinary share up to 7.0p - an increase of 16.7%

-         Earnings per ordinary share up to 19.4p - an increase of 4.3%


The Chairman, Mr Geoffrey Halstead, commenting, said:

'Once again we have made good progress and with our strong financial resources
we look forward to the full year with confidence.'

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

            Nick Lyon - gcg hudson sandler            Telephone : [phone]



                              Chairman's Statement

It is my pleasure to present these figures which are the best interim results we
have reported.

Turnover at £56.8 million is 6.6% ahead of the corresponding period last year
and the pre-tax profit of £6.95 million is 6.5% ahead.

Given the inclusion in the corresponding half year of royalty income from the
Belstaff brand (sold June 2004) of £450,065, the increase is commendable.  The
turnover growth is related to our flooring activities with the UK and Europe
reporting positive growth, the latter some 15% ahead of last year.

In addition, the acquisition in October 2004 of Falck Design (based in Sweden)
by the Group has already had a beneficial effect.

Phoenix Distribution has suffered a sales decline, in part due to adverse
sentiment following our sale of Belstaff, but largely because of a depressed
market, evidenced by falling new motorcycle registrations.  This is
disappointing but was anticipated, to a degree, in our budgeting process and
some restructuring has taken place. Nevertheless, Phoenix represents only 7% of
group turnover and still makes a positive contribution to our results.

Earnings Per Share and Dividend

Earnings per share of 19.4p (2003 : 18.6p) show an increase of 4.3% reflecting
the profits growth and the slightly higher effective tax rate which is a result
of higher overseas rates of tax than the standard UK 30%.

We are increasing the interim dividend to 7.0p (2003 : 6.0p) which is an
increase of 16.7%.  This increase reflects our ability to pay based on cash
resources and a view that our historic interim payment to final payment ratio of
1:2, should, perhaps, be less biased towards the final dividend.

Outlook

It has been a good half year and our flooring companies have traded well despite
the ongoing challenge caused  by raw material price increases. Overall, we look
forward to consolidating the progress made to date through to the full year
result.


Geoffrey Halstead
Chairman
30 March 2005



Interim Report
for the half-year ended 31 December 2004


                                                                  Half-year             Half-year                  Year
                                                                      ended                 ended                 ended
                                                                   31.12.04              31.12.03               30.6.04
                                                                      £'000                 £'000                 £'000

Turnover                                                            56,806                53,301               104,703

Operating profit                                                     6,225                 6,239                13,150
Exceptional item                                                         -                     -                10,396
Net interest receivable                                                729                   289                   549

Group profit on ordinary activities
(before taxation)                                                    6,954                 6,528                24,095
Taxation                                                            (2,151)               (1,958)               (5,938)

Group profit on ordinary activities
(after taxation)                                                     4,803                 4,570                18,157

Dividends:
Preference (5.5%) - non-equity                                          (6)                   (6)                  (11)
Ordinary - equity                                                   (1,792)               (1,523)               (4,476)

Retained profit                                                      3,005                 3,041                13,670

Earnings per ordinary share of 10p:
- headline                                                            19.4p                 18.6p                 38.5p
- basic                                                               19.1p                 18.2p                 72.2p
- diluted                                                             19.0p                 18.1p                 71.7p

Net dividends per ordinary share                                       7.0p                  6.0p                17.75p




Consolidated Balance Sheet
As at 31 December 2004

                                                                  Half-year             Half-year                  Year
                                                                      ended                 ended                 ended
                                                                   31.12.04              31.12.03               30.6.04
                                                                      £'000                 £'000                 £'000

Fixed assets
Intangible assets                                                    3,574                 2,650                 2,564
Tangible assets                                                     20,853                19,485                18,308

                                                                    24,427                22,135                20,872

Current assets
Stocks                                                              20,269                20,795                21,930
Debtors                                                             17,953                17,217                18,533
Cash at bank, in hand and on                                        36,666                22,190                37,045

short-term deposits
                                                                    74,888                60,202                77,508
Creditors - amounts falling due within one year                    (30,386)              (26,944)              (33,302)
Net current assets                                                  44,502                33,258                44,206

Total assets less current liabilities                               68,929                55,393                65,078

Creditors - amounts falling due after more than one                   (231)                 (207)                 (213)
year
Provisions for liabilities and charges                                (916)               (1,662)               (1,040)
                                                                    67,782                53,524                63,825

Capital and reserves
Equity share capital                                                 2,531                 2,507                 2,511
Non-equity share capital                                               200                   200                   200

Called up share capital                                              2,731                 2,707                 2,711
Share premium account                                                5,597                 5,153                 5,221
Revaluation reserve                                                  3,544                 3,544                 3,544
Capital reserve                                                        720                   720                   720
Profit and loss account                                             55,190                41,400                51,629

                                                                    67,782                53,524                63,825



Consolidated Cash Flow Statement
For the half-year ended 31 December 2004


                                                                  Half-year             Half-year                  Year
                                                                      ended                ended                  ended
                                                                   31.12.04              31.12.03               30.6.04
                                                                      £'000                 £'000                 £'000

Net cash inflow from operating activities                           10,101                 9,207                17,383
Returns on investments and servicing of finance                        722                   287                   616
Taxation                                                            (3,507)               (1,998)               (4,262)
Capital expenditure                                                 (3,882)                 (636)               (1,346)
Acquisitions and disposals                                          (1,390)                    -                 10,828
Equity dividends paid                                               (2,971)               (2,507)               (4,014)

Cash (outflow)/inflow before financing                                (927)                4,353                19,205
Financing:
Purchase of own shares                                                   -                (1,882)               (1,883)
Shares issued                                                          396                   739                   811

(Decrease)/increase in cash                                           (531)                3,210                18,133

Reconciliation of net cash flow to movement in net
funds
(Decrease)/increase in cash                                           (531)                3,210                18,133

Change in net funds resulting from cash flows                         (531)                3,210                18,133
Effect of exchange differences                                         152                    24                   (44)

Movement in net funds for the period                                  (379)                3,234                18,089
Net funds at 30 June 2004                                           37,045                18,956                18,956

Net funds at 31 December 2004                                       36,666                22,190                37,045



Statement of Total Recognised Gains and Losses
For the half-year ended 31 December 2004
                                                                  Half-year             Half-year                  Year
                                                                      ended                ended                  ended
                                                                   31.12.04              31.12.03               30.6.04
                                                                      £'000                 £'000                 £'000

Profit for the financial period                                      4,803                 4,570                18,157
Currency translation differences on foreign                            556                   175                  (224)
currency net investments
                                                                     5,359                 4,745                17,933

Total recognised gains relating to the financial
period



Reconciliation of Movements in Shareholders' Funds
For the half-year ended 31 December 2004

                                                                  Half-year             Half-year                  Year
                                                                      ended                 ended                 ended
                                                                   31.12.04              31.12.03               30.6.04
                                                                      £'000                 £'000                 £'000

Profit for the financial period                                      4,803                 4,570                18,157
Dividends                                                           (1,798)               (1,529)               (4,487)

                                                                     3,005                 3,041                13,670

Other recognised gains and losses relating to the                      556                   175                  (224)
financial period
Purchase of own shares                                                   -                (1,882)               (1,883)
New share capital subscribed                                           396                   739                   811

Net increase in shareholders' funds for the                          3,957                 2,073                12,374
financial period
Opening shareholders' funds                                         63,825                51,451                51,451

Closing shareholders' funds                                         67,782                53,524                63,825

Equity shareholders' funds                                          67,582                53,324                63,625
Non-equity shareholders' funds                                         200                   200                   200

                                                                    67,782                53,524                63,825


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 2004.

2.  Taxation

Taxation has been provided at the rate of 30.9% (2003: 30.0%).

3.  Dividends

The interim dividend is payable on 26 May 2005 to those shareholders on the
register at the close of business on 29 April 2005.  The preference dividend,
which was paid on 31 December 2004, is in respect of 5.5% cumulative preference
shares.  The next preference dividend is payable on 30 June 2005 to those
preference shareholders on the register at the close of business on 20 May 2005.

4.  Calculation of earnings per ordinary share


                                                                  Half-year             Half-year                  Year
                                                                      ended                 ended                 ended
                                                                   31.12.04              31.12.03               30.6.04
                                                                      £'000                 £'000                 £'000

Profit on ordinary activities after taxation                         4,803                 4,570                18,157
Preference dividend                                                     (6)                   (6)                  (11)

Basic earnings                                                       4,797                 4,564                18,146
Goodwill amortisation charge                                           100                    86                   173
Exceptional item                                                         -                     -                (8,637)

Headline earnings                                                    4,897                 4,650                 9,682

Weighted average number of ordinary shares in issue             25,180,052            25,048,866            25,137,174
Weighted average number of ordinary shares in issue             25,301,848            25,191,875            25,293,497

(diluted for the effect of outstanding share
options)
Headline earnings per ordinary share                                  19.4p                 18.6p                 38.5p
Basic earnings per ordinary share                                     19.1p                 18.2p                 72.2p
Diluted earnings per ordinary share                                   19.0p                 18.1p                 71.7p


5.  Statutory accounts

The figures for the year ended 30 June 2004 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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