JAMES LATHAM PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2007

Chairman’s statement

I am very pleased to report an increase in pre-tax profit of 56% for the first half year compared with the same period last year. The interim dividend has been increased by 25%. In November the leased head office and warehouse at Hemel Hempstead was purchased for £5.25m - the balance sheet remains strong.

Results

These results are the first to be presented under International Financial Reporting Standards and previously reported figures have been restated. A full reconciliation is shown in the notes accompanying this statement.

Sales for the 6 months to 30 September 2007 were £59,326,000 compared with £49,072,000 for the same period last year, a 21% increase. The operating profit rose by 56% to £4,209,000 compared with £2,690,000 last year. Pre-tax profit at £4,578,000 was up 56% on last year’s £2,936,000. Earnings per Ordinary Share are 16.0p (2006 9.8p).

Interim Dividend

The Board has declared an interim dividend of 2.5p per Ordinary Share (2006 2.0p), which is covered 6.4 times (2006 4.9 times). The dividend is payable on 24 January 2008 to Ordinary shareholders on the Company’s Register at the close of business on 4 January 2008. The ex-dividend date is 2 January 2008.

Six Months Trading to 30 September 2007

After the strong trading performance last year, Lathams Ltd has performed well in the six months to 30 September 2007. The Company, which distributes panel products, hardwoods and softwoods, benefited from steady demand and higher prices which helped increase both the volume of sales and margins. Volumes were higher in the period July to September.

Current & Future Trading

The management accounts show good levels of trading in October and November - however prices have dropped slightly on products that are not in short supply and as a result margins have returned to their more usual levels. While demand from our merchant customers has slowed, other customer groups continue to show high demand levels. Trading conditions in terms of supply, demand and pricing can change rapidly in this industry; we are monitoring the markets to be in a good position to respond early to any adverse trends. The Company’s strategy of becoming less dependent on commodity products, where prices and margins are prone to wide fluctuations, will be beneficial in what are becoming tougher trading conditions.

The strong growth in the existing business has absorbed working capital. In addition to this, plans to relocate two depots to larger premises are progressing and we expect to announce the opening of a new site before the year end.

Peter Latham
Chairman
5 December 2007

For Further Enquiries:

James Latham Plc Peter Latham, Chairman David Dunmow, Finance Director	Tel : 01442 849100 Tel : 01442 849100
Blue Oar Securities Plc Mike Coe, Director, Corporate Finance	Tel : 0117 933 0020