Upbeat sales from James Latham plc’s two new depots have helped deliver better than expected results for the timber and panel products importer.
Latham, which runs seven importing sites and eight Neville Long suspended ceiling depots, saw its sales rise 1.9% to £42.89m and pre-tax profits dip slightly to £1.42m from £1.48m for the six months to September 30. Analysts had expected economic uncertainty to have dented the company’s bottom line, but its Hemel Hempstead and Dudley branches – both of which opened in July – delivered ahead-of-target sales.
David Dunmow, James Latham financial director, said: ‘At the start of the year we thought that the economic uncertainty and the two new moves to Hemel Hempstead and Dudley, would mean none too brilliant half-year results. But the depots picked up sales a lot quicker than we anticipated.’
Latham now expects the two new depots to break even earlier than budgeted.
Chairman Roger Latham said that sales across the group had been ‘excellent’ in October, but uncertainty over the economy meant it was questionable how long this would continue.
Latham’s results were partly buoyed by a one-off gain of £107,000 from the sale of an interest in GA Day Timber Centres.
The company’s move out of its Clapton head office is reported to be proceeding well, with part of the panels business already transferred to Hemel Hempstead. Two new depots in east London, to open by mid-2002, will take the remainder of the Clapton business.
