In its 251st year of trading, timber importer and distributor the James Latham Group has just announced its preliminary results, recording an 18 percent increase in turnover on last year.

The results also show a considerable increase in operating profits of 29 percent to £6,612,000 against £5,136,000 last year.

Profit before tax stands at £7,124,000 against last year’s £5,661,000, an increase of 26 percent. While earnings per share is 25.7p, up 44% on last year.

International demand for timber products remained strong for the first half of the year and with temporary shortages in some areas, prices increased. However, as predicted in the interim statement, gross margins weakened for the balance of the year, returning to more normal levels. Volume handled per working day peaked in the September quarter, and although the March quarter was lower, it was still ahead of March 2007.

Chairman, Peter Latham commented: "The results show a good improvement on last year and there has been a strong increase in the operating profit. Turnover was up more than 18 percent and the balance sheet still remains strong."

He added: "James Latham started trading from its first Scotland branch in April and sales have been encouraging. The Eastleigh depot was relocated to larger premises in Fareham in March and will expand on stock holdings from July. Trading conditions in April and May have been challenging and while revenue is ahead of last year, there is evidence of reduced demand from customers and increased competition for available business, resulting in margins coming under further pressure. That said, the company will remain focused on growing the business and plans are on schedule to relocate the Dudley depot to larger premises in August."

Costs of nearly £400,000 associated with the expansions and relocations have been included in the accounts. The Company will continue to focus on growing trade in value added products such as veneered boards and acrylic stone products where unit value and margins are higher.


-Ends- 


For further media information, please contact Rebecca Jones on 0161 817 4200, fax 0161 817 4212 or e-mail rebecca.jones@connectpoint.co.uk