James Halstead expects lower annual profit after hit from Iran war

James Halstead PLC on Wednesday said it expects sales and profit to fall in the 2026 financial year as the Iran conflict led to a "sudden" impact on input costs.

The Manchester, England-based commercial flooring manufacturer said it expects sales in the financial year to the end of June to be "marginally below" the 2025 comparative, with profit between 10% and 15% below last year's figure.

For financial 2025, James Halstead reported revenue of £262.0 million with profit after tax of £40.6 million.

The company said it has experience headwinds against sales of luxury vinyl tile, principally in Europe and Australia. However, the firm has grown its market share in the UK.

"The impact on input costs of the Iran conflict was sudden and led to many suppliers immediately initiating surcharges," the firm added.

James Halstead said it aimed to absorb some of this cost and to buffer the effects to end contractors. "Furthermore, James Halstead carries significant stock and with many competitors not as well placed, we saw it as an opportunity to take some extra volume as those competitors raised prices," it said.

The company noted disruption to global trade routes and shipping movements in the last three months of the year, but said these have had a smaller impact than first feared.

"The board is confident that the medium-term prospects remain solid despite the recent external challenges and side winds," James Halstead said.

It expects to announce its results for the full year towards the end of September.

Shares in James Halstead were down 4.9% at 119.80 pence on Wednesday morning in London.

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