Leading UK timber product distributor James Latham is considering investing in a National Distribution Centre to improve its service to customers, according to its latest annual results announcement.
James Latham chairman Nick Latham mentioned the plans when reporting pre-tax profits for the company of £24.3m for the financial year to March 31, 2025. This compared with last year’s £30.3m. Revenues were almost exactly the same at £366.6m.
Mr Latham shared that the company had completed its end-to-end review of its supply chain.
“The outcome was that we should consider investing in a National Distribution Centre,” he said.
“This facility would enable the business to further improve the service it offers to our customers, increase our product range and most importantly allow the business to take control of its supply chain so that our customers can rely on the exceptional service that we give.
“We are currently reviewing the options, and once finalised, this is expected to be a two-to-three-year project. The consideration of this investment shows our intention to remain market leader in our sector and future proof the business for many years to come.”
The company reported a gradual trend to improved market conditions in the final quarter of the financial year has continued into the new financial year, with a slight improvement in the trading margin and also trading volumes.
“We are not seeing any price weakness in our product portfolio, and our manufacturers have significant cost pressures on raw materials and wages which should lead to some price inflation over the coming financial year,” added Mr Latham.
“Demand for our solid timber products, which has been more challenging during this financial year, are showing signs of improvement which we believe will continue.
Mr Latham said the majority of customers were more confident at the moment, with better order books than at the same period last year.
Lathams sees a continuing trend of a shift in product mix to some lower value products as customers looked to purchase cheaper and more cost-effective products.
The cost price of its products was on average 3.5% higher (2024: 3.4% lower) than at the start of the financial year.
Other updates from Lathams include a new warehouse management system at the Thurrock depot, the purchase of its site in Scotland and a thorough rebranding which has seen Dresser Mouldings renamed Latham Timber Manufacturing and IJK become James Latham Ireland. Abbey Woods is now James Latham Dublin.
