REG - Latham(James) PLC - Half-year Financial Report
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RNS Number : 1654J Latham(James) PLC 27 November 2025
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
Nick Latham
Chairman
27 November 2025
This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended.
For further information please visit www.lathamtimber.co.uk
(http://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 (Corporate Broking)
JAMES LATHAM PLC
CONSOLIDATED INCOME STATEMENT
For the six months to 30 September 2025
Six months to 30 Sept. 2025 unaudited Six months to 30 Sept. 2024 unaudited Year to 31 March 2025 audited
£000 £000 £000
Revenue 196,794 186,591 366,610
Cost of sales (including warehouse costs) (164,856) (156,251) (305,162)
Gross profit 31,938 30,340 61,448
Selling and distribution costs (14,029) (12,933) (27,407)
Administrative expenses (6,795) (6,074) (13,848)
Operating profit 11,114 11,333 20,193
Finance income 1,877 2,468 4,435
Finance costs (166) (210) (347)
Profit before tax 12,825 13,591 24,281
Tax expense (3,167) (3,433) (6,135)
Profit after tax attributable to owners of the parent company 9,658 10,158 18,146
Earnings per ordinary share (basic) 47.9p 50.5p 90.1p
Earnings per ordinary share (diluted) 47.9p 50.3p 89.9p
All results relate to continuing operations.
JAMES LATHAM PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months to 30 September 2025
Six months to 30 Sept. 2025 unaudited Six months to 30 Sept. 2024 unaudited Year to 31 March 2025 audited
£000 £000 £000
Profit after tax 9,658 10,158 18,146
Other Comprehensive income
Actuarial loss on defined benefit pension scheme (399) (1,167) (382)
Deferred tax relating to components of other comprehensive income 219 292 (485)
Foreign translation credit/(charge) 441 (35) (2)
Other comprehensive income for the period, net of tax 261 (910) (869)
Total comprehensive income, attributable to owners of the parent company 9,919 9,248 17,277
JAMES LATHAM PLC
CONSOLIDATED BALANCE SHEET
At 30 September 2025
As at 30 Sept. 2025 unaudited As at 30 Sept. 2024 unaudited As at 31 March 2025 audited
£000 £000 £000
ASSETS
Non-current assets
Goodwill 1,193 1,193 1,193
Other intangible assets 901 1,069 985
Property, plant and equipment 55,914 41,462 49,902
Right-of-use-asset 7,572 10,492 8,100
Trade and other receivables 898 863 936
Retirement benefit surplus 13,790 15,066 13,778
Total non-current assets 80,268 70,145 74,894
Current assets
Inventories 70,884 66,882 65,695
Trade and other receivables 67,229 64,399 65,312
Cash and cash equivalents 59,843 67,457 69,117
Tax receivable 403 - 436
Total current assets 198,359 198,738 200,560
Total assets 278,627 268,883 275,454
Current liabilities
Lease liabilities 1,423 1,372 1,473
Trade and other payables 38,228 37,856 35,607
Interest bearing loans and borrowings - - 3,629
Current tax payable - 18 -
Total current liabilities 39,651 39,246 40,709
Non-current liabilities
Interest bearing loans and borrowings 592 592 592
Lease liabilities 6,605 9,493 6,915
Deferred tax liabilities 6,574 5,760 6,758
Total non-current liabilities 13,771 15,845 14,265
Total liabilities 53,422 55,091 54,974
Net assets 225,205 213,792 220,480
Capital and reserves
Issued capital 5,040 5,040 5,040
Share-based payment reserve 613 197 450
Capital reserve 398 398 398
Retained earnings 219,154 208,157 214,592
Total equity attributable to shareholders of the parent company 225,205 213,792 220,480
JAMES LATHAM PLC
CONSOLIDATED CASH FLOW STATEMENT
For the six months to 30 September 2025
Six months to 30 Sept 2025 unaudited Six months to 30 Sept 2024 unaudited Year to 31 March 2025 audited
£000 £000 £000
Net cash flow from operating activities
Cash generated from operations 10,132 11,523 23,724
Interest paid (26) (36) (46)
Income tax paid (3,099) (3,722) (6,659)
Net cash inflow from operating activities 7,007 7,765 17,019
Cash flows from investing activities
Interest received and similar income 1,377 1,976 3,442
Purchase of property, plant and equipment (7,900) (3,166) (13,464)
Proceeds from sale of property, plant and equipment 80 57 225
Net cash outflow from investing activities (6,443) (1,133) (9,797)
Cash flows before financing activities
Exercise of share options 108 137 162
Lease liability payments (818) (902) (1,897)
Equity dividends paid (5,499) (14,291) (15,880)
Net cash outflow from financing activities (6,209) (15,056) (17,615)
Decrease in cash and cash equivalents for the period (5,645) (8,424) (10,393)
Cash and cash equivalents at beginning of the period 65,488 75,881 75,881
Cash and cash equivalents at end of the period 59,843 67,457 65,488
JAMES LATHAM PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to owners of the parent company
Issued capital £000 Share-based payment reserve £000 Capital reserve £000 Retained earnings £000 Total equity £000
As at 1 April 2024 (audited) 5,040 152 398 213,027 218,617
Profit for the period - - - 10,158 10,158
Other comprehensive income:
Actuarial loss on defined benefit pension scheme - - - (1,167) (1,167)
Deferred tax relating to components of other comprehensive income - - - 292 292
Foreign translation charge - - - (35) (35)
Total comprehensive income for the period - - - 9,248 9,248
Transactions with owners:
Dividends - - - (14,291) (14,291)
Exercise of options - (36) - 36 -
Deferred tax on share options - 2 - - 2
Own shares movement - - - 137 137
Share-based payment expense - 79 - - 79
Total transactions with owners - 45 - (14,118) (14,073)
Balance at 30 September 2024 (unaudited) 5,040 197 398 208,157 213,792
Profit for the period - - - 7,988 7,988
Other comprehensive income:
Actuarial gain on defined benefit pension scheme - - - 785 785
Deferred tax relating to components of other comprehensive income - - - (777) (777)
Foreign translation charge - - - 33 33
Total comprehensive income for the period - - - 8,029 8,029
Transactions with owners:
Dividends - - - (1,589) (1,589)
Exercise of options - 30 - (30) -
Deferred tax on share options - (3) - - (3)
Own shares movement - - - 25 25
Share-based payment expense - 226 - - 226
Total transactions with owners - 253 - (1,594) (1,341)
Balance at 31 March 2025 (audited) 5,040 450 398 214,592 220,480
Profit for the period - - - 9,658 9,658
Other comprehensive income:
Actuarial loss on defined benefit pension scheme - - - (399) (399)
Deferred tax relating to components of other comprehensive income - - - 219 219
Foreign translation charge - - - 441 441
Total comprehensive income for the period - - - 9,919 9,919
Transactions with owners:
Dividends - - - (5,499) (5,499)
Exercise of options - (34) - 34 -
Own shares movement - - - 108 108
Share-based payment expense - 197 - - 197
Total transactions with owners - 163 - (5,357) (5,194)
Balance at 30 September 2025 (unaudited) 5,040 613 398 219,154 225,205
JAMES LATHAM PLC
NOTES TO THE HALF YEARLY REPORT
1. The results presented in this report are unaudited and they have been
prepared in accordance with the recognition and measurement principles of
International Accounting Standards in conformity with the requirements of the
Companies Act 2006 and on the basis of the accounting policies expected to be
used in the financial statements for the year ending 31 March 2026. The half
yearly report does not include all the disclosures that would be required for
full compliance with IFRS. The figures for the year ended 31 March 2025 are
extracted from the statutory accounts of the group for that period.
2. The directors propose an interim dividend of 8.1p per ordinary share which
will absorb £1,633,000 (2024: 7.95p absorbing £1,605,000), payable on 23
January 2026 to shareholders on the Company's Register at the close of
business on 5 January 2026. The ex-dividend date is 2 January 2026.
3. This half yearly report does not constitute statutory financial accounts
within the meaning of section 434 of the Companies Act 2006. The statutory
accounts for the year ended 31 March 2025 were filed with the Registrar of
Companies. The audit report on those financial statements was not qualified
and did not contain a 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) or (3) of the Companies Act 2006. The half
yearly report has not been audited by the Company's auditor.
4. 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.
Six months to 30 Sept 2025 unaudited Six months to 30 Sept 2024 unaudited Year to 31 March 2025 audited
£000 £000 £000
Net profit attributable to ordinary shareholders 9,658 10,158 18,146
Number '000 Number '000 Number '000
Weighted average share capital 20,146 20,131 20,129
Add: diluted effect of share capital options issued 24 63 46
Weighted average share capital for diluted earnings per ordinary share 20,170 20,194 20,175
calculation
5. Net cash flow from operating activities
Six months to 30 Sept 2025 unaudited Six months to 30 Sept 2024 unaudited Year to 31 March 2025 audited
£000 £000 £000
Profit before tax 12,825 13,591 24,281
Adjustment for finance income and cost (1,711) (2,258) (4,088)
Depreciation and amortisation 2,924 2,475 5,524
Profit on disposal of property, plant and equipment (73) (24) (454)
Increase in inventories (5,189) (5,173) (3,986)
(Increase)/decrease in receivables (1,879) 283 (702)
Increase in payables 2,949 2,427 147
Net defined benefit cost recognised in income statement 204 185 2,845
Cash funding of defined benefit scheme (115) (62) (148)
Share-based payments non cash amounts 197 79 305
Cash generated from operations 10,132 11,523 23,724
6. Copies of this statement will be posted on our website,
www.lathamtimber.co.uk/investors A copy can be emailed or posted upon
application to the Company Secretary, James Latham plc, Unit C2, Breakspear
Park, Breakspear Way, Hemel Hempstead, Herts, HP2 4TZ, or by email to
plc@lathams.co.uk (mailto:plc@lathams.co.uk)
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