01 May 2023
By Maynard Paton
I have recorded another podcast with fellow investor and good friend Roland Head. This time we talked about James Halstead, the vinyl-flooring specialist that has lifted its dividend for 45 consecutive years. We discussed the company’s Polyflor product, its competitive position, the old-school family management and why the share features on our watch lists:
We cover:
- Vinyl flooring is not boring! A 20-bagger since 2000 and a 45-year record of dividend increases.
- Introduction to Polyflor, the different types of flooring and the reasons customers buy.
- Why James Halstead is on my watch list and Roland’s watch list.
- Overseas sales and the wide range of locations the flooring can be found.
- The slowing growth rate, competition and price-sensitive customers.
- The clean accounting, the pension deficit and building up stock to ensure good customer service.
- Family management as a ‘moat’, chief executive Mark Halstead and boardroom succession planning.
- Family-run firms appointing non-family members as bosses.
- Next-generation Halsteads, the senior leadership ‘team’ and Geoffrey Halstead retiring at 81.
- Halstead’s cosy board and Lord Lee’s stint as a non-exec.
- Long-serving staff, rising revenue per employee and the absenteeism KPI.
- Director pay and bonuses, poor disclosure, family shareholdings and employee nominee shareholdings.
- The old-school management, the absence of investor presentations and emails from the FD.
- Halstead’s efforts to improve sustainability, recycling and energy usage.
- The latest H1 results, lower margins and profit, and not passing on cost increases.
- Falling stock levels, net cash and will October’s final dividend be increased?
- Meeting Peter Lynch’s perfect-stock checklist, the 4% yield and potentially buying with a 5% income.
Extra links:
- James Halstead website.
- James Halstead centenary video.
- Polyflor website.
- My James Halstead article for SharePad.
- Roland Head’s dividend website.
Happy listening!
Maynard Paton
PS: The episode was recorded on 25 April 2023.
