The company’s earnings rose £3.9m to £11.3m on sales 14% ahead at £163.1m.
The figure included exceptional gains of £1.8m, but the pre-tax figure was still £2.5m ahead at £10.5m and post-tax £3.1m at £8.6m.
Acting chairman Meryl Bushell said that the result was due to "strong performance across all areas of the business".
"Timber had a difficult March 2013 quarter but ended the year 12% higher and panel product sales rose 11%," she said. "Commodity plywood sales grew significantly and Accoya modified wood and WoodEx, Latham’s laminated oak, sapele and redwood engineered timber brand were also particularly successful."
She added that the company had controlled overheads despite the extra business volumes and that, if anything, was looking forward to stronger growth.
"Revenues for April and May were 6% higher in both panels and timber and customers are reporting improving order books and, while there is still some uncertainty about future market conditions, signs support cautious optimism," said Ms Bushell.
Lathams says the MDF market is currently competitive, with supply outweighing demand, but reports increased business in the joinery, shopfitting, decking and cladding markets.
The company said that chairman Peter Latham, who recently suffered a serious accident, is "making excellent progress".
