Final Results

Latham(James) PLC
27 June 2003

James Latham plc


Announcement of Preliminary Results for the year ended 31st March 2003


Results


Turnover this year is £91,797,000 against £86,178,000 last year, an increase of
6.5%.


Operating profit is £1,395,000 compared with £2,405,000 last year. This year's
operating profit is after an SSAP24 pension charge of £737,000 (2002 nil) and
relocation costs of £348,000.


Pre-tax profit is £1,643,000 against £2,770,000 for last year which included
£107,000 profit on the sale of our interest in an associated company.


Profit after tax is £1,326,000 (2002 £1,971,000) and earnings per Ordinary Share
are 25p (2002 37.8p).


Final Dividend


The Directors recommend a final dividend of 11p per Ordinary Share (2002 11p).
This is to be paid on 26 August 2003 to Shareholders on the register at the
close of business on 25 July 2003. The shares will become ex-dividend on 23 July
2003.


The total dividend per Ordinary Share of 16.25p for the year is covered 1.5
times by earnings. This compares with a total dividend of 16p for the previous
year which was covered 2.4 times.


Trading Year


The net profit achieved for the year is disappointing. The figures, however,
have been distorted by a number of exceptional costs which arose in the second
half of the financial year.


On a positive note, Lathams Ltd's external sales increased by a creditable 7% in
spite of weak prices. The gross margin also improved. If the costs relating to
relocation from Clapton are excluded, Lathams Ltd. achieved a result comfortably
ahead of last year.


This relocation, during the Winter, of our panel products and timber operations
from Clapton to Thurrock and Purfleet respectively was a major undertaking.
One-off expenses amounted to £348,000. These depots commenced trading on 2
January 2003 and made losses in the quarter January to March 2003. The premises
have been purchased freehold without, as yet, the benefit of any proceeds from
the proposed sale of the 131/2 acre Clapton site. As a consequence, our
borrowings have increased significantly leading to higher interest charges.


Nevill Long Ltd. encountered very difficult trading conditions. Including the
new depot at Birmingham, sales were 5% ahead of last year but the gross profit
contribution was lower. This, plus increased overheads partly due to the new
depot, resulted in a small loss for the year.


Both companies suffered higher bad debts which reflects the difficult economic
circumstances in the UK.


The James Latham plc final salary pension scheme is underfunded. The SSAP 24
pension calculations have produced a £737,000 charge to the 2002/03 Profit &
Loss Account. For 2003/04, employer's and employees' contributions have been
increased and future benefits have been reduced. The Scheme was closed to new
entrants in 2001.


Current Year


Although trading conditions are more challenging than 12 months ago, sales for
the first quarter of 2003/04 at both Lathams Ltd. and Nevill Long Ltd are ahead
of the same period of 2002/03.


After a disrupted start, sales at Thurrock and Purfleet are beginning to build
up.


New products, which have been taken on over the past few months, are expected to
bolster sales and margins to an increasing extent.


We have expanded our depot network over the past two years and now intend to
consolidate until the sale of the Clapton site has been concluded. More
importance than ever is being attached to scrutinising costs and making savings
wherever possible.


Negotiations are continuing with the London Borough of Hackney for planning
consent on the vacant Clapton site. An Appeal has also been lodged with the
Planning Inspectorate and this is due to be heard in December 2003.
Realistically, it is unlikely that the proceeds of the sale will be received in
the current financial year.


At all levels there is a determination to manage the business effectively to
maximise gross profit, contain overheads and restore net profit to a higher
level.






Roger Latham

Chairman



CONSOLIDATED PROFIT AND LOSS ACCOUNT JAMES LATHAM PLC

For the year ended 31 March 2003
£'000s                                                                         2003                              2002

Turnover                                                                     91,797                            86,178
Cost of sales                                                              (76,874)                          (72,224)

Gross profit                                                                 14,923                            13,954
Selling and distribution costs                             (7,613)                           (6,299)
Administrative expenses                                    (5,989)                           (5,378)
Other operating income                                          74                               128
                                                                           (13,528)                          (11,549)
Operating Profit                                                              1,395                             2,405
Share of operating profit in Associates                                          74                                18
Profit on disposal of associated undertaking                                      -                               107
Interest receivable and similar income                                          428                               401
Interest payable and similar charges                                          (254)                             (161)

Profit on ordinary activities before taxation                                 1,643                             2,770
Tax on profit on ordinary activities                                          (317)                             (799)

Profit on ordinary activities after taxation                                  1,326                             1,971
Dividends (including non-equity dividends)                                    (887)                             (880)
Retained profit                                                                 439                             1,091
Earnings per ordinary share                                                   25.0p                             37.8p
Diluted Earnings per ordinary share                                           24.9p                             37.7p



CONSOLIDATED BALANCE SHEET JAMES LATHAM PLC

As at 31 March 2003

£'000s                                                        2003                         2002

Fixed assets
Intangible fixed assets                                                     411                        438
Tangible fixed assets                                                    12,806                      7,814
Investments                                                                 537                        481
                                                                         13,754                      8,733
Current assets
Stocks - goods for resale                                  14,185                      13,316
Debtors                                                    19,049                      19,428
Investments                                                     -                         389
Cash at bank and in hand                                    1,012                         421
                                                           34,246                      33,554
Creditors: amounts falling due within one year           (17,344)                    (13,830)
Net current assets                                                       16,902                     19,724
Total assets less current liabilities                                    30,656                     28,457

Creditors: amounts falling due after more than                          (3,260)                    (1,118)
one year

Provisions for liabilities and charges
Deferred taxation                                                             0                      (165)
Other provisions                                                          (397)                      (614)
Total net assets                                                         26,999                     26,560
Represented by:

Capital and reserves
Called up share capital                                                   6,027                      6,027
Capital reserve                                                               3                          3
Revaluation reserve                                                         149                        149
Profit and loss account                                                  20,820                     20,381

Shareholders' funds                                                      26,999                     26,560
Attributable to equity shareholders                                      26,012                     25,573
Attributable to non-equity shareholders                                     987                        987



CONSOLIDATED CASH FLOW STATEMENT JAMES LATHAM PLC

For the year ended 31 March 2003
£'000s                                                        2003                         2002

Cash flow from operating activities                                       3,815                        892
Dividend received from associate                                             21                          7
Returns on investments and servicing of finance
Interest received and similar income                          369                         474
Interest paid                                               (160)                       (125)
Preference dividend paid                                     (79)                        (79)

Net cash inflow from returns on investments and
servicing of finance                                                        130                        270

Taxation                                                                  (859)                    (1,041)

Capital expenditure and financial investment
Purchase of tangible fixed assets                         (5,330)                     (2,084)
Purchase of own shares                                       (20)                        (98)
Proceeds of sale of tangible fixed assets and                  11                          24
property

Net cash flow from capital expenditure and
financial investment                                                    (5,339)                    (2,158)

Acquisition and disposals
Proceeds on sale of investment in associated                                  -                        255
undertaking

Equity dividends paid                                                     (808)                      (751)
Cash outflow before use of liquid resources and
financing                                                               (3,040)                    (2,526)

Management of liquid resources
Sale of UK listed investments                                               448                        715

Financing
Bank loans repaid during year                               (666)                       (666)
Other creditors                                             (500)                       1,200
Bank loans obtained during the year                         3,569                           -

Net cash inflow from financing                                            2,403                        534

Decrease in cash for the year                                             (189)                    (1,277)

Reconciliation of net cash flow to movement in
net funds

Decrease in cash for the year                               (189)                     (1,277)

Cash inflow from increase in financing                    (2,403)                       (534)
Other creditors                                                 -                     (1,200)
Cash inflow from increase in liquid resources               (448)                       (715)

Movement in net funds for the year                                      (3,040)                    (3,726)
Net (debt) funds at 1 April 2002                                        (1,594)                      2,132
Net debt at 31 March 2003                                               (4,634)                    (1,594)



Notes to the preliminary announcement


 1. The financial information in this announcement does not constitute statutory
    accounts as defined in section 240 of the companies Act 1985. Statutory
    accounts for the previous financial year ended 31 March 2002 have been
    delivered to the Registrar of Companies. The auditors' report on those
    accounts was unqualified and did not contain any statement under section 237
    (2) or (3) of the Companies Act 1985. The auditors have indicated that they
    intend to give an unqualified report, and will not contain any statement
    under section 237(2) or (3) of the Companies Act 1985, on the statutory
    accounts for the year ended 31 March 2003. Copies of the Company's Report
    and Accounts will be sent to shareholders shortly and will be available at
    the registered office of the company: Unit 3, Swallow Park, Finway Road,
    Hemel Hempstead, Herts HP2 7QU.


 2. The consolidated accounts include the accounts of the Company and its
    subsidiary undertakings and have been prepared using acquisition accounting
    principles.


 3. The basic earnings per share are calculated on the weighted average number of
    shares in issue during the year of 4,980,000 (2002: 5,008,000). The fully
    diluted earnings per share takes account of the outstanding options which
    results in a weighted average number of shares in issue during the year of
    5,001,000 (2002: 5,018,000).


 4. The directors recommend payment of a final dividend of 11p per ordinary share
    (2002: 11.0p).





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