James Halstead's pre-tax profits rose to £23.2 million on the six months to the end of December - an increase of 0.8%.

The AIM-listed manufacturer and international distributor of commercial floor coverings said revenue rose by 4.3% to £119.6m and operating profit increased by 0.9% to £23.5m.

Other highlights: - Basic earnings per ordinary share 8.5p - a decrease of 1.1%

- Interim dividend increased to a record 3.75p - up 7.1%

- Net cash at £51.6 million

Chief executive Mark Halstead said: "Despite a tough six months in the UK and prevailing cost increases in raw materials - yet another record half year and a 7.1 % increase in dividend."