Chair’s statement
I am very pleased to report good trading results for the financial year to 31 March 2026 that further demonstrate the resilience of our business model in tough economic conditions.
The financial year to 31 March 2026 was another year that has felt quite challenging, but actually the Group performance improved each quarter in terms of both volume and margin. We have seen an improvement in our timber volumes, driven by pack timber business through our LDT business, which operates at a lower than average margin but attracts much lower overheads. On the panel side of the business we have seen an improved product mix, and also increased volumes of direct panel products from both port locations and manufacturers direct to our customers.
During the second half of the year we saw a significant competitor go into administration, which did cause a few short term pressures on the margin on some product groups, but these became opportunities in the final quarter of the financial year.
Global supply chains have been much easier this year, until the Middle East conflict that started in February 2026. This has had little effect on these financial results but the effects of this will be felt in the financial year to 31 March 2027. Product values have remained stable during the year with less cheaper imported products coming into the UK supply chain which had destabilised prices in the last few years.
Revenue for the financial year to 31 March 2026 was £393.0m, up 7.2% on last year’s £366.6m. Like for like volumes taking into account working days, increased by 7.7%, with good volume growth across our product range. The cost price of our products has remained stable this year being on average 0.9% lower (2025: 3.5% higher) than at the start of the financial year.
Gross profit percentage for the financial year to 31 March 2026 was 16.5% compared with 16.8% in the previous financial year, with a more competitive environment and increased volumes from our timber pack business, resulting in margins reducing slightly below our long term average. Operational overheads have been well controlled.
Profit before tax is £25.1m, compared with last year’s £24.3m. Profit after tax for the year is £18.6m compared with last year’s £18.1m. Earnings per ordinary share is 92.5p compared with last year’s 90.1p.
As at 31 March 2026 net assets have increased to £232.3m (2025: £220.5m). Inventory levels have increased to £72.9m from £65.7m last year. Current trade and other receivables at the year end were £5.8m higher than the previous year with our measure of debtors days unchanged from the previous year. Bad debts have remained small at 0.10% (2025: 0.13%) of revenues. Cash and cash equivalents of £51.2m (2025: £65.5m) remain strong, providing good cover for our future investments including the National Distribution Centre.
Final dividend
The Board has declared a final dividend of 28.6p per Ordinary Share (2025: 27.3p). The dividend is payable on 21 August 2026 to ordinary shareholders on the Company’s register at close of business on 31 July 2026. The ex-dividend date will be 30 July 2026. The total dividend per ordinary share of 36.70p for the year (2025: 35.25p) is covered 2.5 times by earnings (2025: 2.6 times).
Current and future trading
The momentum that we saw in the final quarter of this financial year has carried on into the current financial year, with a slight improvement in the margin and also the volume per working day. We are seeing significant price increases from many of our suppliers, due to increased energy and oil prices caused by the Middle East conflict and increased freight costs. Importantly we are not seeing any supply issues at this moment in time, but there are some concerns in the industry that shortages of certain by-products of oil could cause production issues in the future if the conflict and passage through the Strait of Hormuz does not come to an end in the next couple of months. Customer demand is quite patchy, with some customers reporting strong order books, while others are somewhat quieter.
The improvement in the timber volumes has continued, mostly driven by the increase in timber pack business in our LDT model. The excellent service that we give to our customers by investing in running our depots 24/5 is enabling us to pick up new customers. The effect that the Middle East crisis is going to have on the medium to long term demand is uncertain, but what I do know is that we have an excellent track record in delivering strong results whatever the challenges are that we face.
Development Strategy
The Board continue to focus on developing the business and ensuring that the business is in the best position to take advantage of all the opportunities that will arise in the future.
After the successful integration of the warehouse management system (“WMS”) at Thurrock, it has recently been rolled out into our Hemel Hempstead depot which has had a very positive impact on customer experience. The aim is to roll out WMS into our timber only business in Purfleet later in the year, before we focus on getting it embedded in the National Distribution Centre. The overall plan is to get WMS into all our depots within the next three years.
Our main priority is getting the National Distribution Centre built and planning how we can successfully integrate the changes and opportunities that this will bring to the business. The project is on track, and we aim to be fully operational by the end of 2027. The team are very mindful that we need to bed in current activities within the National Distribution Centre before we start focusing on new opportunities.
Nick Latham
Chair
1 July 2026