James Latham Group has seen an 11% increase on last year’s turnover.
The preliminary results, which include the new Gateshead depot, also show a significant increase in operating profits to £3,597,000 against £2,791,000 last year – a rise of 28.9%.
Including the profit on the disposal of the company’s Clapton site, the figure before tax is £21,832,000 against last year’s £3,029,000. Excluding profits on the disposal, the pre-tax profits were £4,026,000 – 32.9% higher than last year.
Chairman Roger Latham said: “The group had a much stronger year than last, particularly in the first half. Both our panels and timber divisions bolstered sales, gross margins and net profit. In addition, Nevill Long, the ceiling, drylining and partitioning systems distributor, produced an excellent increase in net profit. Sales, margins and profit all improved.”
He said the £17,806,000 profits on the sale of the Clapton premises was exceptional and had come at an opportune time. “As previously reported, the defined benefit pension scheme remains in deficit and the group’s contributions will need to be increased soon to eliminate the shortfall over a number of years,” he added.
Mr Latham said that, looking forward, sales in April and May were comfortably ahead of last year, although competition was intensifying.
He added: “With customers concerned that declining consumer spending could impact on their businesses we cannot rely on price increases in the current year to enhance margins.”
The company has also announced the appointment of Peter Latham as deputy chairman. He will become chairman when Roger Latham retires on December 16.
