Inflation affecting flooring manufacturer despite positive outlook

Financial data published by the flooring manufacturer James Halstead shows a slight decline in annual revenue to £127.2 million for the year ending Dec 31, 2025, compared with £130.1 million the previous year.

Profits were lower than the previous year, and profit margins decreased slightly. The decline in profits is largely attributed to inflation driven by the war in the Middle East, which has increased raw materials, transport and energy costs.

James Halstead is based in Bury and manufactures floor coverings for domestic and commercial use. Its high-profile premium brands include Polyflor, Karndean, Recofloor, Expona and Carnero.

The company CEO, Gordon Oliver, recognises the current difficult conditions, which he says are impacting all flooring manufacturers and suppliers. However, he is optimistic about the company’s future. Despite short-term challenges, James Halstead is well established in the flooring market, and sales are expected to pick up in the medium term.

Broker Panmore has positively assessed the company’s health, saying:

”In our opinion, the quality of a business is demonstrated by its ability to navigate turbulent markets. In this regard, James Halstead continues to score well, validating our positive stance on the stock.”

Whilst most types of floor coverings may cost more due to inflation caused by world events, many value-for-money deals are available for quality flooring from a good flooring retailer in the Chester and North Wales region. It is a good time to purchase new flooring for both residential and commercial customers.