Lathams chairman Peter Latham told TTJ during the launch of the company’s new Leeds depot that the first full year of revenue from the LDT business (formerly DLH UK Ltd) and some price increases, particularly for MDF, had boosted turnover.
He also said recent sales volumes – in April and May – were higher than a year ago but competition remained "intense" and continued to put pressure on margins.
Pre-tax profits for the year totalled £7.1m (2011: £8m), while operating profit was £7.7m (2011: £8m).
The operating profit reduction was due to lower trading margins and £150,000 temporary duplication of costs as the company relocated its largest trading site – from Ossett to Leeds. Gross margins were down by 0.8%.
Lathams said the international market for hardwood and panel products was stable with hardwood prices steady and panel prices strengthened, particularly between April-September 2011.
LDT achieved "good" external sales and made a useful contribution to group profits. Bad debts were lower than last year.
The company said the seasonal pattern seemed to be repeating itself, with higher daily sales in April and May but order books were generally short-term.
Lathams said the group would need to invest in its older facilities in the coming years so they can emulate the success of the new facilities it had delivered elsewhere.
