Interim Results

Latham(James) PLC
21 November 2001
 
 
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2001 

Results

Pre-tax profits are £1,418,000 against £1,478,000 for the first 6 months of
last year. This year's results include a profit of £107,000 realised on the
disposal of our 50% interest in G A Day Timber Centres Ltd. Turnover at £42.9
million is 1.9% ahead of last year.  Earnings per ordinary share are 19.8p
(2000 20.3p). 
 

Interim Dividend

 
The Board has declared an interim dividend of 5.0p per Ordinary Share (2000
4.5p) which is covered 4 times (2000 4.5 times). The dividend is payable on
28th January 2002 to shareholders on the register at the close of business on
4th January 2002. The ex-dividend date is 2nd January 2002. 
 
Lathams Ltd. 
 
Lathams Ltd. sales are up 3% but costs have increased slightly due to the
opening of 2 new depots at Dudley and Hemel Hempstead and the closure of the
mill at Clapton prior to the sale of the site. The initial results from both
these new depots, which are leasehold, are encouraging. It is anticipated
they will reach breakeven point earlier than budgeted. 
 
 
Nevill Long Ltd. 
 
The profit achieved by Nevill Long Ltd. was similar to last year, albeit on
3% less turnover. Trading in their sector of the building trade has become
more difficult since June 2001. 
 

Relocation from Clapton

 
The head office and accounts department relocated to Hemel Hempstead in June
2001. Part of the panel products trading operation has also transferred there. 
 
At the end of October 2001 we purchased, for £2.3 million, a 2.8 acre site
with warehousing and offices at Purfleet, Essex. Payment for this site will
be phased over 2 years. After additional warehousing has been constructed, it
is anticipated the Clapton timber department will relocate there in the middle 
of 2002. 
 
Meanwhile, we are continuing to search for a suitable site to the east of London
to which we can transfer the remainder of the Clapton panel products department.
 

Planning Consent

 
At the end of October 2001 we submitted, jointly with Countryside Properties
plc, a planning application to the London Borough of Hackney for redevelopment 
of our premises at Clapton. 
 
The proposal is for a mixed development of private residential properties,
affordable housing, work/live units and industrial premises. Until the exact
nature of the planning consent is known, it is impossible to put an accurate
value on the site. 
 

Pension Scheme

 
The James Latham Group final salary pension scheme has been closed to new
entrants. In the long term, we believe this will protect the Company from the
risk posed by the vagaries of funding a defined benefit scheme. 
 
A Stakeholder scheme has been established. 
 

Current & Future Trading

 
The Company achieved excellent sales for the month of October 2001. This, in
part, reflects the opening of the 2 new depots.  
 
Our wide customer base is generally busy, but in view of the uncertainty over
the economy, it remains to be seen how long this will continue. 
 

Roger J Latham 
Group Chairman                              21st November 2001 
 

  JAMES LATHAM PUBLIC LIMITED COMPANY                                         
  CONSOLIDATED PROFIT AND LOSS ACCOUNT                                        
  For the six months to 30 September 2001                                     
      
                                          Six months     Six months   Year to 31
                                          to 30 Sept.   to 30 Sept.   March 2001
                                              2001           2000        audited
                                            unaudited      unaudited            
                                              £000           £000         £000  

  Turnover                                   42,891        42,084       83,008

  Cost of sales (including                 (35,771)      (35,194)     (68,651)
  warehouse costs)                                                            

  Gross profit                                7,120         6,890       14,357

  Distribution costs                        (3,049)       (2,799)      (5,859)

  Administrative expenses                   (2,782)       (2,631)      (5,470)

  Other operating income                         69            57          132

                                            (5,762)       (5,373)     (11,197)

  Operating profit                            1,358         1,517        3,160

  Profit on disposal of associated              107             -            -
  undertaking                                                                 

  Share of profits of associated                 10            22          (5)
  undertakings                                                                

  Net interest                                 (57)          (61)        (129)

  Profit on ordinary activities               1,418         1,478        3,026
  before taxation                                                             

  Tax on profit on ordinary                   (387)         (430)        (942)
  activities                                                                  

  Profit on ordinary activities               1,031         1,048        2,084
  after taxation                                                              

  Dividends          - preference              (39)          (39)         (79)

                     - ordinary               (250)         (222)        (725)

  Retained profit                               742           787        1,280

  Earnings per ordinary share                 19.8p         20.3p        40.1p

  Notes
                                                                       
  1.                 The results for the six months ended 30 September 2001   
                     and 30 September 2000 are unaudited and prepared on the    
                     basis of the accounting policies set out in the Group      
                     statutory accounts for the year ended 31 March 2001. The   
                     results for the year ended 31 March 2001 are extracted
                     from the statutory accounts, on which the auditors       
                     issued an unqualified report, and which have been filed    
                     with the Registrar of Companies. 
                                              
  2.                 The directors have declared an interim dividend of 5.0p  
                     per ordinary share which will absorb £252,000 (2000: 4.50p 
                     absorbing £226,800), payable on 28 January 2002 to         
                     shareholders on the Register at the close of business on 4 
                     January 2002. The ex-dividend date is 2 January 2002.      
                     This dividend is accrued in the above figures.             

  3.                 Copies of this statement will be sent to all             
                     shareholders and will also be available on written       
                     application to the Company Secretary, James Latham plc,  
                     Unit 3 Swallow Park, Finway Road Hemel Hempstead, Herts,   
                     HP2 7QU.                                                   
 
  4.                 The Group had no recognised gains or losses for the six  
                     months to 30 September 2001 other than the results shown   
                     above.                                                   
                                                                              
  JAMES LATHAM PUBLIC LIMITED COMPANY                                         
  CONSOLIDATED BALANCE SHEET                                                  
  As at 30 September 2001                                                     
                                           As at 30       As at 30     As at 31 
                                         Sept. 2001     Sept. 2000   March 2001 
                                          unaudited      unaudited      audited 
                                             £000           £000         £000   

  Fixed assets                                                                

  Intangible fixed assets                       451           477          464
  Tangible fixed assets                       5,303         4,836        4,788
  Investments                                   424           534          536

                                              6,178         5,847        5,788

  Current assets                                                              

  Stocks - goods for resale                  15,236        13,156       13,271
  Debtors                                    20,926        19,380       17,888
  Investments                                 1,143         1,507        1,177
  Cash at bank and in hand                      574           206        2,469

                                             37,879        34,249       34,805

  Creditors:  amounts falling due           (16,497)      (13,238)     (13,556)
              within one year                                          
  
  Net current assets                         21,382        21,011       21,249

  Total assets less current                  27,560        26,858       27,037
  liabilities                                                                 

  Creditors:  amounts falling due                                              
              after more than one year        (625)       (1,188)        (867)

  Provisions for liabilities and charges      (724)         (694)        (701)
                                                                      
  Total net assets                           26,211        24,976       25,469

  Represented by:                                                             

  Capital and reserves                                                        

  Called up share capital                     6,027         6,027        6,027

  Capital reserve                                 3             3            3

  Revaluation reserve                           149           149          149

  Profit and loss account                    20,032        18,797       19,290

  Shareholders' funds                        26,211        24,976       25,469

  Attributable to equity                     25,224        23,989       24,477
  shareholders                                                                

  Attributable to non-equity                    987           987          987
  shareholders                                                                


  JAMES LATHAM PUBLIC LIMITED COMPANY                                         
  CONSOLIDATED CASH FLOW STATEMENT                                            
  For the six months to 30 September 2001                                     

                                          Six months     Six months   Year to 31
                                          to 30 Sept.   to 30 Sept.   March 2001
                                              2001           2000        audited
                                           unaudited      unaudited             
                                              £000           £000         £000  
  Cash flow from operating                  (2,339)       (1,226)        2,915
  activities                                                                  

  Dividend received from associate                7            17           28

  Returns on investments and servicing of finance                             

  Interest received and similar income          120            80          170

  Interest paid                                 (67)         (127)        (202)

  Preference dividend paid                      (39)          (39)         (79)

  Net cash outflow from returns on               14          (86)        (111)
  investments and servicing of                                                
  finance 

  Taxation                                    (385)         (180)        (623)

  Capital expenditure and financial                                           
  investment                                                                  

  Purchase of tangible fixed assets            (625)          (87)        (132)

  (Purchase) sale of own shares                 (39)           78           34

  Proceeds of sale of tangible                    2            20           27
  fixed assets and property                                                   

  Net cash outflow from capital                (662)           11          (71)
  expenditure and financial investment                                          
  Acquisitions and disposals                    255                           

  Equity dividends paid                        (502)         (422)        (649)

  Cash inflow before use of liquid           (3,612)       (1,886)        1,489
  resources and financing                                                     

  Management of liquid resources                                              

  (Purchase) sale of UK listed                 (64)            42          200
  investments                                                                 

  Financing                                                                   

  Bank loans repaid during year               (333)          (333)        (667)

  Short term borrowings obtained                100           250             
  during the year                                                             

  Capital element of finance lease and hire                  (12)         (24)
  purchase payments                                                           

  Net cash outflow from financing             (233)          (95)        (691)

  (Decrease) increase in cash for           (3,909)       (1,939)          998
  the period                                                                  

  Reconciliation of net cash flow to movement 
  in net debt                                                                   

  (Decrease) increase in cash for           (3,909)       (1,939)          998
  the period                                                                  

  Cash outflow from decrease in                 233            95          691
  debt and lease financing                                                    

  Cash outflow (inflow) from                     64          (42)        (200)
  increase in liquid resources                                                

  Movement in net debt for the year         (3,612)       (1,886)        1,489

  Net funds (debt) at 1 April 2001            2,132           643          643

  Net (debt) funds at 30 September 2001      (1,480)       (1,243)        2,132