Interim Results

Latham(James) PLC
07 December 2004




                               JAMES LATHAM PLC       
                           UNAUDITED INTERIM RESULTS
                    FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2004



Highlights:



•         Turnover up 11.6%.

•         Pre-tax profit up 60%.

•         Earnings per share up 62%.

•         Interim dividend up 9%.


CHAIRMAN'S STATEMENT



On 30 November 2004, the Board announced our intention to transfer our Ordinary
Shares and Preference Shares from the Official List to the Alternative
Investment Market (AIM).  It is currently anticipated that dealings will cease
on the Official List at close of business on 30 December 2004 and will commence
on AIM with effect from 31 December 2004.


I am now pleased to announce a good set of trading results for the half-year.


In addition, and as suggested in our announcement of 30 November 2004, an
extraordinary general meeting has been convened for the purpose of dividing each
existing ordinary share of £1 into four ordinary shares of 25p each (the EGM).
Further information regarding the EGM is set out in the enclosed letter,
together with the formal notice of the EGM and the associated form of proxy.



Results

Pre-tax profit on ordinary activities is £2,231,000 compared to £1,393,000 for
the period to 30 September 2003. Gross profit increased by £1,709,000 and
overheads (excluding interest) by £802,000.



Group turnover at £54,375,000 is 11.6% ahead of the £48,724,000 for the first
six months of last year. Operating profit is £2,227,000 against £1,320,000 last
time. Earnings per Ordinary Share are 30.6p (2003 18.9p).



Trading Operations

Sales at Lathams Limited, our timber and panel products distribution company,
increased 11.1% over the first six months of last year, helped by rising panels
prices. Both the panels and timber departments returned substantially improved
results. It was also encouraging that recently opened depots produced strong
sales and profits.



Demand for Nevill Long Limited's ceiling, dry lining and partitioning products
was more buoyant than a year ago. This, assisted by higher steel prices,
produced an increase in sales of 15.9%. Overall, the profit achieved was much
improved and satisfactory.



Clapton Site Sale

A lot of progress has been made in negotiating a satisfactory agreement with
Countryside Properties plc, the purchasers of the James Latham plc vacant site
at Clapton, and we hope to be in a position to make an announcement shortly.



Current Trading

October and November have seen a good level of sales and gross margin. Some
panels' prices have, however, retreated from the highest levels of a few months
ago. The Directors anticipate that the second six months of the financial year
are unlikely to match the first six months in absolute terms, although the
result is expected to be satisfactory.



Interim Dividend

The Board has declared an interim dividend of 6.0p per Ordinary Share (2003
5.5p), which is covered 5.1 times (2003 3.4 times), and is payable on 26 January
2005 to Ordinary Shareholders on the Company's Register at the close of business
on 7 January 2005. The ex-dividend date is 5 January 2005.



Please note that the references to the value of dividends per Ordinary Share are
to the existing Ordinary Shares of £1, prior to any division pursuant to the
resolution to be put to the EGM.  If the resolution is passed the interim
dividend will amount to 1.5p per Ordinary Share of 25p.



Roger Latham
Executive Chairman
7 December 2004




Contacts:



Roger Latham Executive Chairman            01442 849121
David Dunmow, Finance Director             01442 849126
Barrie Newton, Rowan Dartington            0117 933 0011




CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months to 30 September 2004

                                                                Six months to        Six months to              Year to
                                                                 30 Sept.2004        30 Sept. 2003        31 March 2004
                                                                    unaudited            unaudited              audited
                                                                         £000                 £000                 £000

Turnover                                                               54,375               48,724               97,546

Cost of sales (including warehouse costs)                            (44,889)             (40,947)             (81,427)

Gross profit                                                            9,486                7,777               16,119

Selling and distribution costs                                        (4,039)              (3,811)              (7,701)
Administrative expenses                                               (3,311)              (2,646)              (5,850)
Other operating income                                                     91                    -                  223

                                                                      (7,259)              (6,457)             (13,328)

Operating profit                                                        2,227                1,320                2,791


Share of profits of associated undertakings                                 -                    4                    4
Profit on disposal of associated undertaking                                -                    -                   18
Net interest                                                                4                   69                  216

Profit on ordinary activities before taxation                           2,231                1,393                3,029

Tax on profit on ordinary activities                                    (669)                (415)                (921)

Profit on ordinary activities after taxation                            1,562                  978                2,108

Dividends- preference                                                    (39)                 (39)                 (79)
- ordinary                                                              (302)                (271)                (896)


Retained profit                                                         1,221                  668                1,133

Earnings  per ordinary share                                            30.6p                18.9p                40.9p




CONSOLIDATED BALANCE SHEET
As at 30 September 2004

                                                               As at 30 Sept.       As at 30 Sept.       As at 31 March
                                                               2004 unaudited       2003 unaudited         2004 audited
                                                                         £000                 £000                 £000

Fixed assets
Intangible fixed assets                                                   764                  398                  385
Tangible fixed assets                                                  13,709               12,792               12,976
Investments                                                                 -                  373                    -

                                                                       14,473               13,563               13,361
Current assets
Stocks - goods for resale                                              17,631               15,260               14,668
Debtors                                                                24,813               21,745               22,249

Cash at bank and in hand                                                  587                  660                  590

                                                                       43,031               37,665               37,507

Creditors: amounts falling due within one year                       (23,918)             (20,157)             (19,867)

Net current assets                                                     19,113               17,508               17,640

Total assets less current liabilities                                  33,586               31,071               31,001

Creditors: amounts falling due after more than one
year
                                                                      (3,883)              (3,246)              (2,707)
Provisions for liabilities and charges                                  (355)                (364)                (367)


Total net assets                                                       29,348               27,461               27,927

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                                                23,174               21,488               21,953
Less investment in own shares                                             (5)                (206)                (205)

Shareholders' funds                                                    29,348               27,461               27,927

Attributable to equity shareholders                                    28,361               26,474               26,940
Attributable to non-equity shareholders                                   987                  987                  987




CONSOLIDATED CASH FLOW STATEMENT
For the six months to 30 September 2004


                                                                  Six months to        Six months to            Year to
                                                                  30 Sept. 2004        30 Sept. 2003      31 March 2004
                                                                      unaudited            unaudited            audited
                                                                           £000                 £000               £000
Cash flow from operating activities                                       (628)              (1,555)              1,978
Dividend received from associate                                              -                   17                 18

Returns on investments and servicing of finance
Interest received and similar income                                        183                  205                444
Interest paid                                                             (170)                (114)              (223)
Preference dividend paid                                                   (39)                 (39)               (79)

Net cash inflow from returns on investments and servicing of               (26)                   52                142
finance

Taxation                                                                  (316)                (215)              (624)

Capital expenditure and financial investment
Purchase of tangible fixed assets                                         (958)                (203)              (624)
Purchase of intangible fixed assets                                       (395)                    -                  -
Purchase of own shares                                                      (4)                 (73)               (74)
Proceeds of sale of own shares                                              199                    -                  1
Proceeds of sale of tangible fixed assets and property                        -                    6                 26

Net cash outflow from capital expenditure and financial                 (1,158)                (270)              (671)
investment

Acquisitions and disposals
Proceeds on sale of investment in associated undertaking                      -                    -                392

Equity dividends paid                                                     (619)                (548)              (820)

Cash outflow before use of liquid resources and financing               (2,747)              (2,519)                415

Financing
Bank loans repaid during the period                                       (357)                (167)              (523)
Bank loans obtained during the period                                     1,500                    -                  -
Finance leases acquired during the period                                    66                    -                  -
Finance leases repaid during the period                                     (1)                    -                  -
Other creditors                                                               -                    -              (700)

Net cash outflow from financing                                           1,208                (167)            (1,223)

Decrease in cash for the period                                         (1,539)              (2,686)              (808)




Reconciliation of net cash flow to movement in net debt

Decrease in cash for the period                                         (1,539)              (2,686)              (808)
Cash outflow from decrease in debt and lease financing                  (1,208)                  167              1,223

Movement in net debt for the year                                       (2,747)              (2,519)                415
Net debt at 1 April 2004                                                (4,219)              (4,634)            (4,634)

Net debt at 30 September 2004                                           (6,966)              (7,153)            (4,219)






Notes



1.             The results for the six months ended 30 September 2004 and 30
September 2003 are unaudited and prepared on the basis of the accounting
policies set out in the Group statutory accounts for the year ended 31 March
2004. The results for the year ended 31 March 2004 are extracted from the
statutory accounts, on which the auditors issued an unqualified report, and
which have been filed with the Registrar of Companies. The presentation of the
balance sheet has been amended to take account of the adoption of UITF38 on
Share Option Schemes, and the prior year figures have been amended.



2.             The directors have declared an interim dividend of 6.0p per
ordinary share which will absorb £302,400 (2003: 5.5p absorbing £277,200),
payable on 26th January 2005 to shareholders on the Register at the close of
business on 7th January 2005.  The ex-dividend date is 5th January 2005. This
dividend is accrued in the above figures.



3.             This statement does not comprise full accounts within the meaning
of Section 240 of the Companies Act 1985.



4.             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.



5.             The Group had no recognised gains or losses for the six months to
30 September 2004 other than the results shown above.








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