Lathams grows pre-tax profits by 21%

The group’s revenue was £96.2m, up 8% on the same period last year. The company said trading conditions were different for the various markets that James Latham serves. Group revenue grew by £7.1m, as a result of higher sales volumes and product mix, which offset lower prices.

This growth was both in panel products and timber, with increased sales in decorative panels, doors, Accoya and WoodEx, James Latham’s engineered wood sections. Trading margins were similar to the previous year, with an improvement in panels and a small decline in timber.

Higher warehouse and distribution costs reflected higher volumes handled and the extended working day at a number of depots. Bad debts have been significantly lower than previous periods and the business continues to take advantage of cash settlement discounts from suppliers where this represents a good return.

“Management information shows growing revenue for October and the first half of November, at slightly improved margins with market conditions continuing to be difficult in some areas, while improving in others,” said chairman Peter Latham.

“In addition, we are progressing with our plans to relocate our two oldest depots and are close to agreeing heads of terms on the new Yate site and are in negotiations for the new Wigston site,” he added.