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James Latham PLC on Thursday said trading conditions were improving gradually as it reported a fall in annual profit on flat sales. The Hemel Hempstead, England-based distributor of timber, panels and decorative surfaces said pretax profit fell 20% to £24.3 million in the financial year to March 31 from £30.3 million a year prior. Revenue was flat at £366.6 million compared with £366.5 million a year ago with cost of sales likewise little changed at £305.2 million versus £304.4 million. Hurting the bottom, higher selling and distribution costs which rose 13% to £27.4 million from £24.2 million and increased administrative expenses up 18% to £13.8 million from £11.7 million. Included within overheads is a £2.5 million one-off pension charge relating to a change in the definition of pensionable salaries, the company noted. In response, shares in James Latham rose 1.8% to 1,155.00 pence each in London on Thursday. James Latham said it did not see an expected improvement in trading conditions until the final quarter of the financial year. Product values were stable for the first half of the financial year, but there was some weakness in commodity products in the second half of the year. The second half saw a ‘significant’ competitor go into administration which caused some short term pressure on margins in some products groups as they quickly turned their stock into cash, the firm noted. Looking ahead, the firm said the gradual trend to improved market conditions has continued into the new financial year, with a slight improvement in the trading margin and also trading volumes. ‘The majority of our customers are more confident at the moment, with better orders books than at the same period last year,’ the firm added. James Latham declared a final dividend of 27.3 pence per share, up 26.0p a year ago, taking the total dividend to 35.25p per share, up 4.4% from 33.75p last year. This excludes the special dividend of 45p per share declared in the previous financial year. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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