James Lathams in annual pre-tax profits boost

Group revenue for the year ending March 31, 2016 was £185.9m, 6.3% up on last year’s £174.9m.

Lathams’ chairman Peter Latham said revenue grew due to increased volumes in ex-warehouse and direct business, though growth slowed in the second half year. Both the panels and timber divisions grew revenues.

“Timber and panel prices fell slightly during the year, in spite of the weakness in sterling in the second half,” said Mr Latham.

“Focus panel products including melamine panels and door blanks, continued to show good growth and our high quality, certified sustainable hardwood as well as WoodEx, our brand of engineered timber for the joinery sector, also showed good growth.”

Meanwhile, this year like-for-like revenues were 4% higher for April and May compared to the same period a year ago.

“While this is a steady start to the year, there are some signs that this growth is slowing and the fluctuating value of sterling, plus the uncertain outlook for business activity caused by the EU referendum, make the immediate future difficult to predict, although we continue to see encouraging growth in the newer decorative products we have introduced,” added Mr Latham.

“The plans to upgrade our two older sites at Yate and Wigston have progressed with site purchase and build contracts approved, subject to planning, for a new site in Yate which should be completed by the end of the financial year, and negotiations proceeding for the relocation of the Wigston site.”