Halstead is on a high (including Everest)

INTEREST rates have been below 1 per cent for more than ten years and are likely to remain there for some time, after the Bank of England voted last week to keep rates at 0.75 per cent, citing Brexit uncertainty and fears of recession.

In such an environment, companies with a track record of solid growth and rising dividends seem increasingly attractive – and flooring firm James

Halstead fits the bill to a tee. Based in Radcliffe, Manchester, the group is on track to deliver its 45th year of uninterrupted dividend growth, after revealing last week that sales and profits for the year to June 30 reached record levels.

Detailed results will be released in September and brokers forecast a 2 per cent increase in sales to £255 million, a 6 per cent rise in profits to £50 million and a 2 per cent rise in the dividend to 13.9p.

Midas recommended the shares in November 2018 at £3.72. On Friday they closed at £5.10, reflecting the market’s growing appreciation of Halstead’s reliability and future plans.

The company is Britain’s leading vinyl floor firm, providing utilitarian products for schools, prisons and hospitals, as well as jazzier options for upmarket hotels and stores. While 35 per cent of Halstead’s business is UKbased, the rest is spread over 65 countries, and includes the new Al Thumama stadium in Qatar, the base camp at Mount Everest, even the Antarctic research base. There are plans to increase sales in Asia, while pursuing growth closer to home. More than 65 per cent of Halstead’s flooring is made in the UK so exports benefit from the falling pound and profit margins are more resilient than many peers.