James Latham plc
(“James Latham” or the “Company”)
HALF YEARLY RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025
Chairman’s statement
Unaudited results for the six months trading to 30 September 2025
Revenue for the six months ended 30 September 2025 was £196.8m, up 5.5% on £186.6m for the same period last year. Cost prices on both timber and panels have remained stable throughout the first half of the year. Volumes are up 6.8% compared with the same period last year, across both panels and timber products, with a significant element of this growth coming from an expansion of our LDT timber pack sales business.
Gross profit percentage, which includes warehouse costs, for the six month period ended 30 September 2025 was 16.2% compared with 16.3% in the comparative six months. The growth in our LDT business, which supplies directly to our customers at lower margins with few additional overheads, has slightly reduced the overall gross margin.
Operating profit was £11.1m, down £0.2m compared with £11.3m profit for the same period last year. Finance income, mainly interest on our cash balances, is down from £2.5m to £1.9m, due mainly to our capital investments since the same period last year. Profit before tax was £12.8m compared with £13.6m for the same period last year. The tax charge of £3.2m represents an effective rate of 24.7%, reflecting the UK basic rate of corporation tax. Earnings per ordinary share were 47.9p compared with 50.5 p for the same period last year.
As at 30 September 2025 net assets are £225.2m (2024: £213.8m). Inventory levels of £70.9m are 6.0% higher than the same period last year in line with increases in volumes traded. Trade and other receivables of £67.2m are 4.4% higher than the same period last year, in line with increases in revenues. Bad debts for this period are lower than the same period last year. Cash and cash equivalents have decreased to £59.8m (2024: £67.5m) due to capital expenditure of £8m in the first half of the year, most of which relates to the National Distribution Centre. We continue to take advantage of additional early settlement discount opportunities with our suppliers as well as generating improved interest receipts.
There is a surplus in the IAS19 valuation of the pension scheme at 30 September 2025 of £13.8m compared with £15.1m in the same period last year.
Interim dividend
The Board has declared an increased interim dividend of 8.1p per Ordinary Share (2024: 7.95p). The dividend is payable on 23 January 2026 to ordinary shareholders on the Company’s Register at close of business on 5 January 2026. The ex-dividend date will be 2 January 2026.
Current and future trading
The second half of 2025/26 has started with similar volumes to the previous six month period to 30 September 2025, with similar margins. We expect that the stability in product prices will continue.
Our customers still have reasonable order books but there is a degree of nervousness about the economic outlook. The merchant sector is still finding growth difficult, in part due to the weakness of the DIY and House Building and Construction sectors.
Construction has now started on the National Distribution Centre, located in Chatteris, and we are pleased with the progress so far which is all going according to plan. Construction is anticipated to be complete by the end of 2026 with the aim of fully trading from the site by the end of 2027. During this period we have strengthened the senior management team by employing an Operations Director and a Business Development Director who will drive the development of the National Distribution Centre and the business opportunities that this will bring.
The board anticipates that the results for the year ended 31 March 2026 will be announced on 2 July 2026