Preliminary Results

Latham(James) PLC

02 July 2026

 

James Latham plc

("James Latham" or "the Company")

Preliminary Results

Chair's statement

I am very pleased to report good trading results for the financial year to 31 March 2026 that further demonstrate the resilience of our business model in tough economic conditions.

The financial year to 31 March 2026 was another year that has felt quite challenging, but actually the Group performance improved each quarter in terms of both volume and margin. We have seen an improvement in our timber volumes, driven by pack timber business through our LDT business, which operates at a lower than average margin but attracts much lower overheads. On the panel side of the business we have seen an improved product mix, and also increased volumes of direct panel products from both port locations and manufacturers direct to our customers.

During the second half of the year we saw a significant competitor go into administration, which did cause a few short term pressures on the margin on some product groups, but these became opportunities in the final quarter of the financial year.

Global supply chains have been much easier this year, until the Middle East conflict that started in February 2026. This has had little effect on these financial results but the effects of this will be felt in the financial year to 31 March 2027. Product values have remained stable during the year with less cheaper imported products coming into the UK supply chain which had destabilised prices in the last few years.

Revenue for the financial year to 31 March 2026 was £393.0m, up 7.2% on last year's £366.6m. Like for like volumes taking into account working days, increased by 7.7%, with good volume growth across our product range. The cost price of our products has remained stable this year being on average 0.9% lower (2025: 3.5% higher) than at the start of the financial year.

Gross profit percentage for the financial year to 31 March 2026 was 16.5% compared with 16.8% in the previous financial year, with a more competitive environment and increased volumes from our timber pack business, resulting in margins reducing slightly below our long term average. Operational overheads have been well controlled.

Profit before tax is £25.1m, compared with last year's £24.3m. Profit after tax for the year is £18.6m compared with last year's £18.1m. Earnings per ordinary share is 92.5p compared with last year's 90.1p.

As at 31 March 2026 net assets have increased to £232.3m (2025: £220.5m). Inventory levels have increased to £72.9m from £65.7m last year. Current trade and other receivables at the year end were £5.8m higher than the previous year with our measure of debtors days unchanged from the previous year. Bad debts have remained small at 0.10% (2025: 0.13%) of revenues. Cash and cash equivalents of £51.2m (2025: £65.5m) remain strong, providing good cover for our future investments including the National Distribution Centre.

Final dividend

The Board has declared a final dividend of 28.6p per Ordinary Share (2025: 27.3p). The dividend is payable on 21 August 2026 to ordinary shareholders on the Company's register at close of business on 31 July 2026.  The ex-dividend date will be 30 July 2026. The total dividend per ordinary share of 36.70p for the year (2025: 35.25p) is covered 2.5 times by earnings (2025: 2.6 times).

Current and future trading

The momentum that we saw in the final quarter of this financial year has carried on into the current financial year, with a slight improvement in the margin and also the volume per working day. We are seeing significant price increases from many of our suppliers, due to increased energy and oil prices caused by the Middle East conflict and increased freight costs. Importantly we are not seeing any supply issues at this moment in time, but there are some concerns in the industry that shortages of certain by-products of oil could cause production issues in the future if the conflict and passage through the Strait of Hormuz does not come to an end in the next couple of months. Customer demand is quite patchy, with some customers reporting strong order books, while others are somewhat quieter.

The improvement in the timber volumes has continued, mostly driven by the increase in timber pack business in our LDT model. The excellent service that we give to our customers by investing in running our depots 24/5 is enabling us to pick up new customers.  The effect that the Middle East crisis is going to have on the medium to long term demand is uncertain, but what I do know is that we have an excellent track record in delivering strong results whatever the challenges are that we face.

 Development Strategy

The Board continue to focus on developing the business and ensuring that the business is in the best position to take advantage of all the opportunities that will arise in the future.

After the successful integration of the warehouse management system ("WMS") at Thurrock, it has recently been rolled out into our Hemel Hempstead depot which has had a very positive impact on customer experience. The aim is to roll out WMS into our timber only business in Purfleet later in the year, before we focus on getting it embedded in the National Distribution Centre. The overall plan is to get WMS into all our depots within the next three years.

Our main priority is getting the National Distribution Centre built and planning how we can successfully integrate the changes and opportunities that this will bring to the business. The project is on track, and we aim to be fully operational by the end of 2027. The team are very mindful that we need to bed in current activities within the National Distribution Centre before we start focusing on new opportunities.

Nick Latham

Chair

1 July 2026

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European (Withdrawal) Act 2018

For further information please visit www.lathamtimber.co.uk or contact:

James Latham plc	Tel: [phone]
Nick Latham, Chairman
David Dunmow, Finance Director
SP Angel Corporate Finance LLP
Matthew Johnson / Caroline Rowe (Corporate Finance)	Tel: [phone]
Abigail Wayne / Rob Rees (Corporate Broking)

JAMES LATHAM PLC

CONSOLIDATED INCOME STATEMENT

For the year ended 31 March 2026

	Audited	Audited
	Year to 31 March  2026	Year to 31 March 2025
	£000	£000
Continuing Operations
Revenue	393,040	366,610
Cost of sales (including warehouse costs)	(328,191)	(305,162)
Gross profit	64,849	61,448
Selling and distribution costs	(28,477)	(27,407)
Administrative expenses	(14,370)	(13,848)
Operating Profit	22,002	20,193
Finance income	3,450	4,435
Finance costs	(362)	(347)
Profit before tax	25,090	24,281
Tax expense	(6,491)	(6,135)
Profit after tax attributable to owners of the parent company	18,599	18,146
Earnings per ordinary share (basic)	92.5p	90.1p
Earnings per ordinary share (diluted)	92.4p	89.9p

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 March 2026

	Audited	Audited
	2026	2025
	£000	£000
Profit after tax	18,599	18,146
Other comprehensive income that will not be classified subsequently to profit and loss:
Actuarial gain/(loss) on defined benefit pension scheme	1	(382)
Deferred tax relating to components of other comprehensive income	311	(485)
Other comprehensive income that may be classified subsequently to profit and loss:
Foreign translation credit/(charge)	305	(2)
Other comprehensive income for the year, net of tax	617	(869)
Total comprehensive income attributable to owners of the parent company	19,216	17,277

 

 

JAMES LATHAM PLC                                                                                   COMPANY REGISTRATION NUMBER 65619

CONSOLIDATED BALANCE SHEET

For the year ended 31 March 2026                                                                                                                                               

	Audited	Audited
	2026	2025
	£000	£000
Assets
Non-current assets
Goodwill	1,193	1,193
Other intangible assets	818	985
Property, plant and equipment	72,243	49,902
Right-of-use-assets	6,956	8,100
Trade and other receivables	792	936
Retirement and other benefit obligation	14,387	13,778
Total non-current assets	96,389	74,894
Current assets
Inventories	72,934	65,695
Trade and other receivables	71,134	65,312
Cash and cash equivalents	51,203	69,117
Tax receivable	-	436
Total current assets	195,271	200,560
Total assets	291,660	275,454
Current liabilities
Lease liabilities	1,362	1,473
Trade and other payables	44,432	35,607
Interest bearing loans and borrowings	-	3,629
Tax payable	433	-
Total current liabilities	46,227	40,709
Non-current liabilities
Interest bearing loans and borrowings	425	592
Lease liabilities	5,985	6,915
Deferred tax liabilities	6,708	6,758
Total non-current liabilities	13,118	14,265
Total liabilities	59,345	54,974
Net assets	232,315	220,480
Capital and reserves
Issued capital	5,040	5,040
Share-based payment reserve	773	450
Capital reserve	398	398
Retained earnings	226,104	214,592
Total equity attributable to shareholders of the parent company	232,315	220,480

JAMES LATHAM PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to the owners of the parent company

	Issued capital	Share-based payment reserve	Capital reserve		Retained earnings		Total Equity
	£'000	£'000	£'000		£'000		£'000
Balance at 1 April 2024 - audited	5,040	152	398		213,027		218,617
Profit for the year	-	-	-		18,146		18,146
Other comprehensive income:
Actuarial loss on defined benefit pension scheme	-	-	-		(382)		(382)
Deferred tax relating to components of other comprehensive income	-	-	-		(485)		(485)
Foreign translation charge	-	-	-		(2)		(2)
Total comprehensive income for the year	-	-	-		17,277		17,277
Transactions with owners:
Dividends	-	-	-		(15,880)		(15,880)
Exercise of options	-	(6)	-		6		-
Deferred tax on share options	-	(1)	-		-		(1)
Own shares movement	-	-	-		162		162
Share-based payment expense	-	305	-		-		305
Total transactions with owners	-	298	-		(15,712)		(15,414)
Balance at 31 March 2025 - audited	5,040	450	398		214,592		220,480
Profit for the year	-	-	-		18,599		18,599
Other comprehensive income:
Actuarial gain on defined benefit pension scheme	-	-	-		1		1
Deferred tax relating to components of other comprehensive income	-	-	-		311		311
Foreign translation credit	-	-	-		305		305
Total comprehensive income for the year	-	-	-		19,216		19,216
Transactions with owners:
Dividends	-	-	-		(7,132)		(7,132)
Exercise of options	-	(59)	-		59		-
Deferred tax on share options	-	(1)	-		-		(1)
Own shares movement	-	-	-		(631)		(631)
Share-based payment expense	-	383	-		-		383
Total transactions with owners	-	323	-		(7,704)		(7,381)
Balance at 31 March 2026 - audited	5,040	773	398		226,104		232,315

JAMES LATHAM PLC

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 March 2026

	Audited	Audited
	2026	2025
	£000	£000
Net cash flow from operating activities
Cash generated from operations	24,723	23,724
Interest paid	(49)	(46)
Income tax paid	(5,362)	(6,659)
Net cash inflow from operating activities	19,312	17,019
Cash flows from investing activities
Interest received and similar income	2,445	3,442
Purchase of property, plant and equipment	(26,319)	(13,464)
Proceeds from sale of property, plant and equipment	56	225
Net cash outflow from investing activities	(23,818)	(9,797)
Cash flows from financing activities
Purchase of preference shares	(217)	-
Purchase of own shares	(784)	-
Exercise of share options	153	162
Lease liability payments	(1,799)	(1,897)
Equity dividends paid	(7,132)	(15,880)
Net cash outflow from financing activities	(9,779)	(17,615)
Decrease in cash and cash equivalents for the year	(14,285)	(10,393)
Cash and cash equivalents at beginning of the year	65,488	75,881
Cash and cash equivalents at end of the year	51,203	65,488

 

JAMES LATHAM PLC

 

Notes to the audited preliminary financial information

1.   The preliminary financial information presented in this report is audited and has been prepared in accordance with the recognition and measurement principles of UK adopted International Accounting Standards in conformity with the requirements of the Companies Act 2006 set out in the Group accounts for the years ended 31 March 2025 and 31 March 2026, and does not contain all the information to be disclosed in financial statements prepared in accordance with IFRS.

2.   The directors propose a final dividend of 28.6p per ordinary share, which will absorb £5,766,000 (2025: 27.3p per ordinary share, absorbing £5,499,000), payable on 21 August 2026 to shareholders on the Register at the close of business on 31 July 2026. The ex-dividend date is 30 July 2026.

3.   The figures for the year ended 31 March 2026 are audited. The statutory accounts for the year ended 31 March 2026 have yet to be delivered to the Registrar of Companies and have been prepared in accordance with UK-adopted International Accounting Standards. The preliminary financial information does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006, and does not contain all the information required to be disclosed in a full set of IFRS financial statements.

Statutory accounts for the year ended 31 March 2026 will be delivered to the Registrar of Companies and sent to Shareholders in due course. The Annual Report and Accounts may also be viewed in due course on James Latham plc's website at www.lathamtimber.co.uk

The audit report on the statutory financial statements for the year ended 31 March 2026 is unqualified and does not include reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report  and does not contain any statement under Section 498(2) or (3) of the Companies Act 2006.

Statutory accounts for the year ended 31 March 2025 have been filed with the Registrar of Companies. The auditor's report on those accounts was unqualified and did not include reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under section 498(2) and (3) of the Companies Act 2006.

4.   This announcement was approved and authorised for issue by the Board of Directors on 1 July 2026.

5.   Net cash flow from operating activities

Year to 31 March 2026  audited Year to 31 March 2025  audited £000 £000 Profit before tax 25,090 24,281 Adjustment for finance income and cost (3,088) (4,088) Depreciation and amortisation 5,870 5,524 Profit on disposal of property, plant and equipment (43) (454) Increase in inventories (7,239) (3,986) Increase in receivables (5,678) (702) Increase in payables 9,032 147 Net defined benefit cost recognised in income statement 456 2,845 Cash funding of defined benefit scheme (60) (148) Share-based payments non cash amounts 383 305 Cash generated from operations 24,723 23,724

6.   Earnings per ordinary share is calculated by dividing the net profit for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

	Year to 31 March 2026 audited	Year to 31 March 2025 audited
	£000	£000
Net profit attributable to ordinary shareholders	18,599	18,146
	Number '000	Number '000
Weighted average share capital	20,102	20,129
Add: diluted effect of share capital options issued	16	46
Weighted average share capital for diluted earnings per ordinary share calculation	20,118	20,175

7.   The Annual General Meeting of James Latham plc will be held at the Leverstock Suite, Holiday Inn, Breakspear Way, Hemel Hempstead, Hertfordshire, HP2 4UA on Wednesday 19 August 2026 at 9.00am.

 

END