Interim Results

James Halstead PLC
31 March 2003

James Halstead plc
31 March 2003
Interim Results For The Half-Year Ended 31 December 2002


                                  KEY FIGURES

James Halstead, the manufacturer and international distributor of flooring:


-      Pre-tax profit up to £ 5.645 million - an increase of 5.4%

-      Net dividend per ordinary share up to 5.1p - an increase of 7.4%

-      Earnings per ordinary share up to 15.2p - an increase of 16%

Geoffrey Halstead, Chairman said :

'Against the current backdrop of UK manufacturing and worldwide flooring
markets, I believe these results are acceptable'.


Enquiries:       Mark Halstead, Chief Executive
                 Gordon Oliver, Financial Director
                 Telephone: [phone] on 31 March 2003



                         CHAIRMAN'S STATEMENT

It gives me great pleasure to report, once again, record results for the
half-year ended 31 December 2002.

Turnover, at £48.5 million is 8% ahead of the comparative period last year, and
pre-tax profit has increased by 5.4%. All our trading companies report an
increase in turnover. In the UK, the market has been sluggish but our
performance has been solid; Polyflor remains in a unique position, having an
excellent reputation for service, product support and long-term quality of
product. Investment in production processes and technical innovation continue to
underpin the performance of the Polyflor range. In all our markets our strategy
of broadening our product range from a platform based on Polyflor products,
continues to meet with success.

The distribution of additional ranges of quality flooring, carried out in a
controlled, efficient manner, has assisted Group performance, and as a direct
result, sales growth has been almost 15% in Germany, with double-digit growth
also in Australia and New Zealand (all before exchange rate movements are
accounted for).

Competition in all our markets remains fierce with consequent price pressure and
a degree of margin erosion. Nevertheless, the Group remains focused on
sustainable business, and not under-selling product to distributors or customers
for short-term volume gains.

Emphasis on cost control and working capital levels remains a feature of these
difficult times. Our level of working capital continues to be improved and net
funds have again increased.

Share buy back

The Board have again elected to modestly buy back shares as the yield remains in
excess of alternative uses of funds, and we believe this represents an efficient
use of funds at a time of under-valuation of the company.

Earnings per share and dividend

Earnings per share of 15.2p show an increase of 16%, reflecting profits growth
and the effect of the purchase by the company of its own shares.

We are increasing the dividend by 7.4% to 5.1p per ordinary share, which, once
again, is a record level of interim dividend.

Outlook

The management teams of this Group are fully focused on delivering shareholder
value, which is an often-used phrase, but in the context of this Group of
companies means dividend, which can only be delivered from profit. At the
present, whilst margins and competitor activity are, as always, of concern, I
look forward to a full year of progress.

Geoffrey Halstead
Chairman
31 March 2003

Interim Report
For the half-year ended 31 December 2002
                                                              Half-year          Half-year              Year
                                                                  ended              ended             ended
                                                               31.12.02           31.12.01           30.6.02
                                                                  £'000              £'000             £'000

Turnover                                                         48,465             44,889            93,033

Group profit on ordinary activities
(before taxation)                                                 5,645              5,358            11,275
Taxation                                                        (1,729)            (1,740)           (3,465)

Group profit on ordinary activities
(after taxation)                                                  3,916              3,618             7,810

Dividends:
Preference (5.5%) - non-equity                                      (6)                (6)              (11)
Ordinary - equity                                               (1,313)            (1,302)           (3,663)

Retained profit                                                   2,597              2,310             4,136

Earnings per ordinary share of 10p:
- headline                                                        15.2p              13.1p             28.8p
- basic                                                           14.9p              12.8p             28.3p
- fully diluted                                                   14.8p              12.8p             28.2p

Net dividends per ordinary share                                   5.1p              4.75p            13.75p



Consolidated Balance Sheet
As at 31 December 2002


                                                              Half-year          Half-year              Year
                                                                  ended              ended             ended
                                                               31.12.02           31.12.01           30.6.02
                                                                  £'000              £'000             £'000
Fixed assets
Intangible assets                                                 2,823              2,490             2,909
Tangible assets                                                  21,149             22,028            21,756

                                                                 23,972             24,518            24,665

Current assets
Stocks                                                           20,359             19,104            20,521
Debtors                                                          15,671             16,226            17,727
Cash at bank, in hand and on short-term deposits                 16,257             14,505            13,755

                                                                 52,287             49,835            52,003
Creditors - amounts falling due
within one year                                                (24,583)           (22,122)          (24,905)

Net current assets                                               27,704             27,713            27,098

Total assets less current liabilities                            51,676             52,231            51,763


Creditors - amounts falling due after more than one
year                                                              (175)              (207)             (188)
                                                                  
Provisions for liabilities and charges                          (1,886)            (2,694)           (1,976)


                                                                 49,615             49,330            49,599

Capital and reserves
Equity share capital                                              2,576              2,742             2,673
Non-equity share capital                                            200                200               200

Called up share capital                                           2,776              2,942             2,873

Share premium account                                             4,442              3,766             4,369
Revaluation reserve                                               3,544              3,544             3,544
Capital reserve                                                     623                428               523
Profit and loss account                                          38,230             38,650            38,290


                                                                 49,615             49,330            49,599





Consolidated Cash Flow Statement
For the half-year ended 31 December 2002


                                                              Half-year          Half-year              Year
                                                                  ended              ended             ended
                                                               31.12.02           31.12.01           30.6.02
                                                                  £'000              £'000             £'000

Net cash inflow from operating activities                         9,665              9,436            15,233
Returns on investments and servicing of finance                     194                228               395
Taxation                                                        (1,541)                136           (2,111)
Capital expenditure                                               (915)              (385)           (1,582)
Acquisitions and disposals                                            -                  -             (251)
Equity dividends paid                                           (2,348)            (2,372)           (3,173)

Cash inflow before use of liquid resources and
financing                                                         5,055              7,043             8,511

Management of liquid resources                                        -              (396)             4,616
Financing:
Purchase of own shares                                          (2,575)            (2,623)           (5,096)
Shares Issued                                                        20                  -               192

Increase in cash                                                  2,500              4,024             8,223


Reconciliation of net cash flow to movement in net
funds

Increase in cash                                                  2,500              4,024             8,223
Cash flow from change in liquid resources                             -                396           (4,616)

Change in net funds resulting from cash flows                     2,500              4,420             3,607
Effect of exchange differences                                        2                 16                79

Movement in net funds for the period                              2,502              4,436             3,686
Net funds at 30 June 2002                                        13,755             10,069            10,069

Net funds at 31 December 2002                                    16,257             14,505            13,755



Statement of Total Recognised Gains and Losses
For the half year ended 31 December 2002
                                                              Half-year          Half-year              Year
                                                                  ended              ended             ended
                                                               31.12.02           31.12.01           30.6.02
                                                                  £'000              £'000             £'000

Profit for the financial period                                   3,916              3,618             7,810
Currency translation differences on foreign currency
net investments                                                    (82)               (49)               237

Total recognised gains relating to the financial
period                                                            3,834              3,569             8,047
                                                                  



Reconciliation of Movements in Shareholders' Funds
for the half-year ended 31 December 2002


                                                              Half-year          Half-year              Year
                                                                  ended              ended             ended
                                                               31.12.02           31.12.01           30.6.02
                                                                  £'000              £'000             £'000

Profit for the financial period                                   3,916              3,618             7,810
Dividends                                                       (1,319)            (1,308)           (3,674)

                                                                  2,597              2,310             4,136
Other recognised gains and losses relating to the
financial period                                                   (82)               (49)               237
                                                                   
Purchase of own shares                                          (2,575)            (2,141)           (4,614)
New share capital subscribed                                         76                  -               630

Net increase in shareholders' funds for the
financial period                                                     16                120               389
                                                                     
Opening shareholders' funds                                      49,599             49,210            49,210

Closing shareholders' funds                                      49,615             49,330            49,599

Equity shareholders' funds                                       49,415             49,130            49,399
Non-equity shareholders' funds                                      200                200               200

                                                                 49,615             49,330            49,599

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 2002.

2.  Taxation

Taxation has been provided at the rate of 30.6% (2001: 32.5%).

3.  Dividends

The interim dividend is payable on 29 May 2003 to those shareholders on the
register at the close of business on 16 April 2003. The preference dividend,
which was paid on 31 December 2002, is in respect of 5.5% cumulative preference
shares. The next preference dividend is payable on 30 June 2003 to those
preference shareholders on the register at the close of business on 23 May 2003.

4.  Calculation of earnings per ordinary share


                                                    Half-year               Half-year                    Year
                                                        ended                   ended                   ended
                                                     31.12.02                31.12.01                 30.6.02
                                                        £'000                   £'000                   £'000

Profit on ordinary activities after
taxation                                                3,916                   3,618                   7,810
Preference dividend                                       (6)                     (6)                    (11)

Basic earnings                                          3,910                   3,612                   7,799
Goodwill amortisation charge                               86                      74                     153

Headline earnings                                       3,996                   3,686                   7,952

Weighted average number of ordinary
shares in issue                                    26,322,045              28,146,307              27,578,577

Weighted average number of ordinary
shares in issue (diluted for the
effect of outstanding share options)               26,437,071              28,157,728              27,640,686


Headline earnings per ordinary share                    15.2p                   13.1p                   28.8p
Basic earnings per ordinary share                       14.9p                   12.8p                   28.3p
Diluted earnings per ordinary share                     14.8p                   12.8p                   28.2p

5.  Statutory accounts

The figures for the year ended 30 June 2002 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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