James Latham plc recorded pre-tax profits of £1.341m for the six months ended September 30 against £1.418m for the first six months of last year.
Last year’s result included a profit of £107,000 realised on the disposal of its interest in an associated undertaking.
At Lathams Ltd sales are up 10.5% on last year. The increase is largely due to the opening of depots at Hemel Hempstead and Dudley in July 2001.
Margins recovered in the second quarter after a difficult first quarter, resulting in Lathams Ltd making profits substantially ahead of last year despite the additional costs of the new depots.
Difficult trading conditions prevailed at Nevill Long Ltd and profits are significanlty lower than last year. Sales are 2.7% ahead of last year, but the gross margin was adversely affected by the competitive market place. The company also experienced an increase in overheads, due partly to the opening of a new depot at West Bromwich.
By the end of this year the timber department at Clapton will relocate to premises at Purfleet and the balance of the panel products department will move to Thurrock, leaving the Clapton site vacant.
The company says negotiations are still under way with the London Borough of Hackney to determine a planning application for the site, submitted last October. The company says despite the resources being devoted to the matter, it is still not possible to predict accurately when consent will be obtained.
Group chairman Roger Latham said: “The third quarter has started well with excellent figures in October. Providing the market does not falter, Lathams Ltd should continue to enjoy acceptable trading conditions, although the imminent move from Clapton will inevitably incur some additional one-off costs.
“The market for Nevill Long Ltd’s products is likely to remain difficult.”
