James Halstead has declared a record dividend following record turnover and profits for the year to the end of June.

Revenue rose to £240.8m - up 6.5% and pre-tax profits increased by 2.5% to £46.6m.

Earnings per ordinary share rose by 3.5% to 17.6p and the board has proposed a final dividend of 9.25p - up 8.8%.

Chief executive Mark Halstead said: 'Despite the shadow of uncertainty that "Brexit" has cast and in a year of clearly tougher than normal trading conditions it's satisfying to report another year of record profits.'

Chairman Geoffrey Halstead said: 'There was clearly a boost to our export activities given the general weakness of Sterling aiding competitiveness and margins.

'This was tempered by a 5.2% fall in UK sales and turmoil in the supply chain of raw materials. The drop in UK sales is entirely accounted for by de-stocking at two of the larger distributor chains.

'We are satisfied that the actual purchases of Polyflor ranges by end users increased and we are encouraged that other independent distributors increased sales.' He added: 'Trading since our year-end has been strong, particularly in the UK. In addition, both our antipodean and French colleagues reported record sales in the first two months.

'Taking current trading into account I can only be confident of progress in the coming year.'

Separately, the company also announced that Geoffrey Halstead would stand down as chairman at the annual general meeting on 1 Dec.

He has been a director of the company for 55 years, the last 17 as chairman.

The company said that in the light of this achievement the board had extended to him the honorary title of president.

The company also said that Eberhard Lotz had notified his intention to retire at the AGM after nine years on the board and 21 years with the group (having previously been the managing director of Objectflor, the group's German subsidiary).

It said that as a result of these departures the board proposed that Anthony Wild, who has held the role of senior independent director (SID) since 2001, would step up to the position of chairman and Stephen Hall, a director since 2012, would become SID.

To restore the board to a full complement it was proposed to bring in two new non-executive directors effective from 1 Dec: Russell Whiting, a local businessman and a director and shareholder of Associated Credits Holdings and Michael Halstead, an executive of many years standing in the advertising industry, in recent years for his own company (HH&S Group Ltd) and formerly as an account director for Saatchi & Saatchi.