RNS Number : 4471O
Latham(James) PLC
26 June 2025
James Latham plc
("James Latham" or "the Company")
Preliminary Results
Chairman's statement
I am very pleased to report good trading results for the financial year to 31 March 2025.
The financial year to 31 March 2025 was a year that started off with challenging market conditions, but one where we were expecting market conditions to improve during the second half of this financial year. However, we did not see the expected improvement until the final quarter. Product values were stable for the first half of the year, but we saw some weakness in our commodity products in the second half of the year. During the second half of the year we saw a significant competitor go into administration which caused some short term pressure on margins in some products groups as they quickly turned their stock into cash.
Global supply chains have been much easier this year, although container rates did fluctuate quite dramatically during the course of the year. Due to the market conditions, we did see a continuing trend of a shift in product mix to some lower value products as customers looked to purchase cheaper and more cost effective products.
Despite all these challenges, these positive results are a further demonstration of the ability of the business to make the most of any market conditions and turn them into opportunities.
Revenue for the financial year to 31 March 2025 was £366.6m, up slightly on last year's £366.5m. Like for like volumes taking into account working days and acquisitions, increased by 2.2%, with growth of 2.4% on delivered business from our own warehouses. The cost price of our products is on average 3.5% higher (2024: 3.4% lower) than at the start of the financial year. We continue to see a move in the product mix of our sales towards cheaper alternative products. Whilst we have gained market share in these products, the lower price per tonne has resulted in reduced revenues.
Gross profit percentage for the financial year to 31 March 2025 was 16.8% compared with 16.9% in the previous financial year, with product mix and a more competitive environment resulting in margins reducing slightly below our long term average. Despite inflation remaining high, operational overheads have been well controlled. Included within overheads is £2.5m one-off pension charge relating to a change in the definition of pensionable salaries. Despite this, there is still a considerable surplus recorded under IAS19 for the final salary pension scheme.
Profit before tax is £24.3m, compared with last year's £30.3m. Profit after tax for the year is £18.1m compared with last year's £22.7m. Earnings per ordinary share is 90.1p compared with last year's 112.7p.
As at 31 March 2025 net assets have increased to £220.5m (2024: £218.6m). Inventory levels have increased to £65.7m from £61.7m last year. Current trade and other receivables at the year end were £0.6m higher than the previous year with our measure of debtors days unchanged from the previous year. Bad debts have remained small at 0.13% (2024: 0.11%) of revenues. Cash and cash equivalents of £65.5m (2024: £75.9m) remain strong.
Final dividend
The Board has declared a final dividend of 27.3p per Ordinary Share (2024: 26.0p). The dividend is payable on 22 August 2025 to ordinary shareholders on the Company's register at close of business on 1 August 2025. The ex-dividend date will be 31 July 2025. The total dividend per ordinary share of 35.25p for the year (2024: 33.75p) is covered 2.6 times by earnings (2024: 3.3 times), not including the special dividend of 45p per ordinary share which was declared in the previous financial year.
Current and future trading
The gradual trend to improved market conditions that we have seen in the final quarter of this financial year has continued into the new financial year, with a slight improvement in the trading margin and also our trading volumes. We are not seeing any price weakness in our product portfolio, and our manufacturers have significant cost pressures on raw materials and wages which should lead to some price inflation over the coming financial year. Demand for our solid timber products, which has been more challenging during this financial year, are showing signs of improvement which we believe will continue.
The majority of our customers are more confident at the moment, with better orders books than at the same period last year.
We are mindful of the geopolitical risks, including the effect that tariffs could have on some of our products which could cause some unexpected challenges during the course of the current financial year. Container rates have been fluctuating due to uncertainties with tariffs. The 90 day tariff reprieve has created an increase in short term freight causing prices to increase, but this could change quite quickly.
Development Strategy
The board are continually focused on developing the business and ensuring that the business is in the best position to make the most of all the future opportunities that will arise.
The service levels and product range we offer our customers continues to be critical to our future success. Following our complete end to end review of our supply chain, the outcome was that we should consider investing in a National Distribution Centre. This facility would enable the business to further improve the service it offers to our customers, increase our product range and most importantly allow the business to take control of its supply chain so that our customers can rely on the exceptional service that we give. We are currently reviewing the options, and once finalised, this is expected to be a two to three year project. The consideration of this investment shows our intention to remain market leader in our sector and future proof the business for many years to come.
During this financial year we implemented a warehouse management system ("WMS") into our Thurrock depot which has been a huge success. We are currently working on rolling this out through the business over the next few years.
We have purchased our site in Scotland and also invested in more melamine racking to further improve our product range for our customers. We continue to invest in racking at our sites to maximise the space and increase the product range for our customers.
We have been through a rebranding process where we now have renamed Dresser Mouldings as Latham Timber Manufacturing, IJK are now James Latham Ireland and Abbey Woods are James Latham Dublin.
Nick Latham
Chairman
25 June 2025
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European (Withdrawal) Act 2018
For further information please visit www.lathamtimber.co.uk or contact:
James Latham plc
Tel: 01442 849 100
Nick Latham, Chairman
David Dunmow, Finance Director
SP Angel Corporate Finance LLP
Matthew Johnson / Charlie Bouverat (Corporate Finance)
Tel: 0203 470 0470
Abigail Wayne / Rob Rees (Corporate Broking)
JAMES LATHAM PLC
CONSOLIDATED INCOME STATEMENT
For the year to 31 March 2025
unaudited
audited
Year to 31 March 2025
Year to 31 March 2024
£000
£000
Revenue
366,610
366,514
Cost of sales (including warehouse costs)
(305,162)
(304,415)
Gross profit
61,448
62,099
Selling and distribution costs
(27,407)
(24,225)
Administrative expenses
(13,848)
(11,731)
Operating Profit
20,193
26,143
Finance income
4,435
4,313
Finance costs
(347)
(194)
Profit before tax
24,281
30,262
Tax expense
(6,135)
(7,601)
Profit after tax attributable to owners of the parent company
18,146
22,661
Earnings per ordinary share (basic)
90.1p
112.7p
Earnings per ordinary share (diluted)
89.9p
112.6p
All results relate to continuing operations.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year to 31 March 2025
unaudited
Audited Restated
2025
2024
£000
£000
Profit after tax
18,146
22,661
Other comprehensive income that will not be classified subsequently to profit and loss:
Actuarial (loss)/gain on defined benefit pension scheme
(382)
5,770
Deferred tax relating to components of other comprehensive income
(485)
212
Other comprehensive income that may be classified subsequently to profit and loss:
Foreign translation charge
(2)
(252)
Other comprehensive income for the year, net of tax
(869)
5,730
Total comprehensive income attributable to owners of the parent company
17,277
28,391
JAMES LATHAM PLC COMPANY REGISTRATION NUMBER 65619
CONSOLIDATED BALANCE SHEET
For the year to 31 March 2025
unaudited
Audited Restated
2025
2024
£000
£000
Assets
Non-current assets
Goodwill
1,193
1,193
Other intangible assets
985
1,152
Property, plant and equipment
49,902
39,989
Right-of-use-assets
8,100
8,363
Trade and other receivables
936
789
Retirement and other benefit obligation
13,778
15,864
Total non-current assets
74,894
67,350
Current assets
Inventories
65,695
61,709
Trade and other receivables
65,312
64,757
Cash and cash equivalents
69,117
75,881
Tax receivable
436
-
Total current assets
200,560
202,347
Total assets
275,454
269,697
Current liabilities
Lease liabilities
1,473
1,373
Trade and other payables
35,607
35,456
Interest bearing loans and borrowings
3,629
-
Tax payable
-
408
Total current liabilities
40,709
37,237
Non-current liabilities
Interest bearing loans and borrowings
592
592
Lease liabilities
6,915
7,298
Deferred tax liabilities
6,758
5,953
Total non-current liabilities
14,265
13,843
Total liabilities
54,974
51,080
Net assets
220,480
218,617
Capital and reserves
Issued capital
5,040
5,040
Share-based payment reserve
450
152
Capital reserve
398
398
Retained earnings
214,592
213,027
Total equity attributable to shareholders of the parent company
220,480
218,617
JAMES LATHAM PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to the owners of the parent company
Issued capital
Share-based payment reserve
Capital reserve
Retained earnings
Total Equity
£'000
£'000
£'000
£'000
£'000
Balance at 1 April 2023 - audited
5,040
124
398
190,013
195,575
Prior period adjustment
-
-
-
1,733
1,733
Restated balance at 1 April 2023
5,040
124
398
191,746
197,308
Profit for the year
-
-
-
22,661
22,661
Other comprehensive income:
Actuarial gain on defined benefit pension scheme
-
-
-
5,770
5,770
Deferred tax relating to components of other comprehensive income (restated)
-
-
-
212
212
Foreign translation charge
-
-
-
(252)
(252)
Total comprehensive income for the year
-
-
-
28,391
28,391
Transactions with owners:
Dividends
-
-
-
(7,348)
(7,348)
Exercise of options
-
(32)
-
32
-
Deferred tax on share options
-
(20)
-
-
(20)
Own shares movement
-
-
-
206
206
Share-based payment expense
-
80
-
-
80
Total transactions with owners
-
28
-
(7,110)
(7,082)
Balance at 31 March 2024 - audited (restated)
5,040
152
398
213,027
218,617
Profit for the year
-
-
-
18,146
22,661
Other comprehensive income:
Actuarial loss on defined benefit pension scheme
-
-
-
(382)
(382)
Deferred tax relating to components of other comprehensive income
-
-
-
(485)
(485)
Foreign translation charge
-
-
-
(2)
(2)
Total comprehensive income for the year
-
-
-
17,277
17,277
Transactions with owners:
Dividends
-
-
-
(15,880)
(15,880)
Exercise of options
-
(6)
-
6
-
Deferred tax on share options
-
(1)
-
-
(1)
Own shares movement
-
-
-
162
162
Share-based payment expense
-
305
-
-
305
Total transactions with owners
-
298
-
(15,712)
(15,414)
Balance at 31 March 2025 - unaudited
5,040
450
398
214,592
220,480
JAMES LATHAM PLC
CONSOLIDATED CASH FLOW STATEMENT
For the year to 31 March 2025
unaudited
audited
2025
2024
£000
£000
Net cash flow from operating activities
Cash generated from operations
23,724
29,563
Interest paid
(46)
(48)
Income tax paid
(6,659)
(5,943)
Net cash inflow from operating activities
17,019
23,572
Cash flows from investing activities
Interest received and similar income
3,442
3,560
Purchase of property, plant and equipment
(13,464)
(5,595)
Proceeds from sale of property, plant and equipment
225
67
Net cash outflow from investing activities
(9,797)
(1,968)
Cash flows from financing activities
Purchase of treasury shares
-
(6)
Exercise of share options
162
212
Lease liability payments
(1,897)
(1,190)
Equity dividends paid
(15,880)
(7,348)
Net cash outflow from financing activities
(17,615)
(8,332)
(Decrease)/increase in cash and cash equivalents for the year
(10,393)
13,272
Cash and cash equivalents at beginning of the year
75,881
62,609
Cash and cash equivalents at end of the year
65,488
75,881
JAMES LATHAM PLC
Notes to the unaudited preliminary financial information
1. The preliminary financial information presented in this report is unaudited and has been prepared in accordance with the recognition and measurement principles of UK adopted International Accounting Standards in conformity with the requirements of the Companies Act 2006 set out in the Group accounts for the years ended 31 March 2024 and 31 March 2025, and does not contain all the information to be disclosed in financial statements prepared in accordance with IFRS.
2. The directors propose a final dividend of 27.3p per ordinary share, which will absorb £5,499,000 (2024: 26.0 plus a special dividend of 45.0p absorbing £14,314,000), payable on 22 August 2025 to shareholders on the Register at the close of business on 1 August 2025. The ex-dividend date is 31 July 2025.
3. The figures for the year ended 31 March 2025 are unaudited. The figures relating to 31 March 2024 have been extracted from the statutory accounts for that year, and restated for a prior year adjustment relating to deferred taxation on the final salary pension scheme surplus. The statutory accounts for the year ended 31 March 2025 have yet to be delivered to the Registrar of Companies and have been prepared in accordance with UK-adopted International Accounting Standards. The preliminary financial information does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006, and does not contain all the information required to be disclosed in a full set of IFRS financial statements.
Statutory accounts for the year ended 31 March 2025 will be delivered to the Registrar of Companies and sent to Shareholders in due course. The Annual Report and Accounts may also be viewed in due course on James Latham plc's website at www.lathamtimber.co.uk
Statutory accounts for the year ended 31 March 2024 have been filed with the Registrar of Companies. The auditor's report on those accounts was unqualified and did not include reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under section 498(2) and (3) of the Companies Act 2006.
4. This announcement was approved and authorised for issue by the Board of Directors on 25 June 2025.
5. Net cash flow from operating activities
Year to 31 March 2025 unaudited
Year to 31 March 2024 audited
£000
£000
Profit before tax
24,281
30,262
Adjustment for finance income and cost
(4,088)
(4,119)
Depreciation and amortisation
5,524
4,271
(Profit)/loss on disposal of property, plant and equipment
(454)
35
(Increase)/decrease in inventories
(3,986)
5,780
(Increase)/decrease in receivables
(702)
1,236
Increase/(decrease) in payables
147
(5,862)
Net defined benefit cost recognised in income statement
2,845
387
Cash funding of defined benefit scheme
(148)
(2,507)
Share-based payments non cash amounts
305
80
Cash generated from operations
23,724
29,563
6. Earnings per ordinary share is calculated by dividing the net profit for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.
Year to 31 March 2025 unaudited
Year to 31 March 2024 audited
£000
£000
Net profit attributable to ordinary shareholders
18,146
22,661
Number '000
Number '000
Weighted average share capital
20,129
20,112
Add: diluted effect of share capital options issued
46
14
Weighted average share capital for diluted earnings per ordinary share calculation
20,175
20,126
7. The Annual General Meeting of James Latham plc will be held at the Leverstock Suite, Holiday Inn, Breakspear Way, Hemel Hempstead, Hertfordshire, HP2 4UA on Wednesday 20 August 2025 at 9.00am.
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