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 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 calculation
20,170
20,194
20,175
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 toplc@lathams.co.uk
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