Half-year Results
James Latham PLC reported a 5.5% increase in revenue to £196.8 million for the six months ended 30 September 2025, driven by a 6.8% volume growth in timber and panel products, particularly from its LDT timber pack sales. Despite stable cost prices, the gross profit percentage slightly decreased to 16.2% from 16.3% due to the lower margins in the LDT business. Operating profit saw a marginal decrease to £11.1 million from £11.3 million, and profit before tax was £12.8 million, down from £13.6 million in the prior year, with earnings per share at 47.9p compared to 50.5p. Net assets increased to £225.2 million, while cash and cash equivalents decreased to £59.8 million due to £8 million in capital expenditure for the National Distribution Centre. The company declared an increased interim dividend of 8.1p per ordinary share.
| Half year to 30 Sep 2025 | Now | Year before | Change |
|---|---|---|---|
| Net income | £9.7m | £10.2m | −4.9% |
| Cash from operations | £7.0m | £7.8m | −9.8% |
| Cash | £59.8m | £67.5m | −11.3% |
Figures as reported, converted to £ where needed – see all financials.
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Chairman's statement
Unaudited results for the six months trading to 30 September 2025
Revenue for the six months ended 30 September 2025 was £196.8m, up 5.5% on £186.6m for the same period last year. Cost prices on both timber and panels have remained stable throughout the first half of the year. Volumes are up 6.8% compared with the same period last year, across both panels and timber products, with a significant element of this growth coming from an expansion of our LDT timber pack sales business.
Gross profit percentage, which includes warehouse costs, for the six month period ended 30 September 2025 was 16.2% compared with 16.3% in the comparative six months. The growth in our LDT business, which supplies directly to our customers at lower margins with few additional overheads, has slightly reduced the overall gross margin.
Operating profit was £11.1m, down £0.2m compared with £11.3m profit for the same period last year. Finance income, mainly interest on our cash balances, is down from £2.5m to £1.9m, due mainly to our capital investments since the same period last year. Profit before tax was £12.8m compared with £13.6m for the same period last year. The tax charge of £3.2m represents an effective rate of 24.7%, reflecting the UK basic rate of corporation tax. Earnings per ordinary share were 47.9p compared with 50.5 p for the same period last year.
As at 30 September 2025 net assets are £225.2m (2024: £213.8m). Inventory levels of £70.9m are 6.0% higher than the same period last year in line with increases in volumes traded. Trade and other receivables of £67.2m are 4.4% higher than the same period last year, in line with increases in revenues. Bad debts for this period are lower than the same period last year. Cash and cash equivalents have decreased to £59.8m (2024: £67.5m) due to capital expenditure of £8m in the first half of the year, most of which relates to the National Distribution Centre. We continue to take advantage of additional early settlement discount opportunities with our suppliers as well as generating improved interest receipts.
There is a surplus in the IAS19 valuation of the pension scheme at 30 September 2025 of £13.8m compared with £15.1m in the same period last year.
Interim dividend
The Board has declared an increased interim dividend of 8.1p per Ordinary Share (2024: 7.95p). The dividend is payable on 23 January 2026 to ordinary shareholders on the Company's Register at close of business on 5 January 2026. The ex-dividend date will be 2 January 2026.
Current and future trading
The second half of 2025/26 has started with similar volumes to the previous six month period to 30 September 2025, with similar margins. We expect that the stability in product prices will continue.
Our customers still have reasonable order books but there is a degree of nervousness about the economic outlook. The merchant sector is still finding growth difficult, in part due to the weakness of the DIY and House Building and Construction sectors.
Construction has now started on the National Distribution Centre, located in Chatteris, and we are pleased with the progress so far which is all going according to plan. Construction is anticipated to be complete by the end of 2026 with the aim of fully trading from the site by the end of 2027. During this period we have strengthened the senior management team by employing an Operations Director and a Business Development Director who will drive the development of the National Distribution Centre and the business opportunities that this will bring.
The board anticipates that the results for the year ended 31 March 2026 will be announced on 2 July 2026
Nick Latham
Chairman
All results relate to continuing operations.
JAMES LATHAM PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months to 30 September 2025
| Six months to 30 Sept. 2025 unaudited | Six months to 30 Sept. 2024 unaudited | Year to 31 March 2025 audited | |||
|---|---|---|---|---|---|
| £000 | £000 | £000 | |||
| Profit after tax | 9,658 | 10,158 | 18,146 | ||
| Other Comprehensive income | |||||
| Actuarial loss on defined benefit pension scheme | (399) | (1,167) | (382) | ||
| Deferred tax relating to components of other comprehensive income | 219 | 292 | (485) | ||
| Foreign translation credit/(charge) | 441 | (35) | (2) | ||
| Other comprehensive income for the period, net of tax | 261 | (910) | (869) | ||
| Total comprehensive income, attributable to owners of the parent company | 9,919 | 9,248 | 17,277 | ||
| JAMES LATHAM PLC | |||||
| CONSOLIDATED BALANCE SHEET | |||||
| At 30 September 2025 | |||||
| As at 30 Sept. 2025 unaudited | As at 30 Sept. 2024 unaudited | As at 31 March 2025 audited | |||
| £000 | £000 | £000 | |||
| ASSETS | |||||
| Non-current assets | |||||
| Goodwill | 1,193 | 1,193 | 1,193 | ||
| Other intangible assets | 901 | 1,069 | 985 | ||
| Property, plant and equipment | 55,914 | 41,462 | 49,902 | ||
| Right-of-use-asset | 7,572 | 10,492 | 8,100 | ||
| Trade and other receivables | 898 | 863 | 936 | ||
| Retirement benefit surplus | 13,790 | 15,066 | 13,778 | ||
| Total non-current assets | 80,268 | 70,145 | 74,894 | ||
| Current assets | |||||
| Inventories | 70,884 | 66,882 | 65,695 | ||
| Trade and other receivables | 67,229 | 64,399 | 65,312 | ||
| Cash and cash equivalents | 59,843 | 67,457 | 69,117 | ||
| Tax receivable | 403 | - | 436 | ||
| Total current assets | 198,359 | 198,738 | 200,560 | ||
| Total assets | 278,627 | 268,883 | 275,454 | ||
| Current liabilities | |||||
| Lease liabilities | 1,423 | 1,372 | 1,473 | ||
| Trade and other payables | 38,228 | 37,856 | 35,607 | ||
| Interest bearing loans and borrowings | - | - | 3,629 | ||
| Current tax payable | - | 18 | - | ||
| Total current liabilities | 39,651 | 39,246 | 40,709 | ||
| Non-current liabilities | |||||
| Interest bearing loans and borrowings | 592 | 592 | 592 | ||
| Lease liabilities | 6,605 | 9,493 | 6,915 | ||
| Deferred tax liabilities | 6,574 | 5,760 | 6,758 | ||
| Total non-current liabilities | 13,771 | 15,845 | 14,265 | ||
| Total liabilities | 53,422 | 55,091 | 54,974 | ||
| Net assets | 225,205 | 213,792 | 220,480 | ||
| Capital and reserves | |||||
| Issued capital | 5,040 | 5,040 | 5,040 | ||
| Share-based payment reserve | 613 | 197 | 450 | ||
| Capital reserve | 398 | 398 | 398 | ||
| Retained earnings | 219,154 | 208,157 | 214,592 | ||
| Total equity attributable to shareholders of the parent company | 225,205 | 213,792 | 220,480 | ||
| JAMES LATHAM PLC | |||||
| CONSOLIDATED CASH FLOW STATEMENT | |||||
| For the six months to 30 September 2025 | |||||
| Six months to 30 Sept 2025 unaudited | Six months to 30 Sept 2024 unaudited | Year to 31 March 2025 audited | |||
| £000 | £000 | £000 | |||
| Net cash flow from operating activities | |||||
| Cash generated from operations | 10,132 | 11,523 | 23,724 | ||
| Interest paid | (26) | (36) | (46) | ||
| Income tax paid | (3,099) | (3,722) | (6,659) | ||
| Net cash inflow from operating activities | 7,007 | 7,765 | 17,019 | ||
| Cash flows from investing activities | |||||
| Interest received and similar income | 1,377 | 1,976 | 3,442 | ||
| Purchase of property, plant and equipment | (7,900) | (3,166) | (13,464) | ||
| Proceeds from sale of property, plant and equipment | 80 | 57 | 225 | ||
| Net cash outflow from investing activities | (6,443) | (1,133) | (9,797) | ||
| Cash flows before financing activities | |||||
| Exercise of share options | 108 | 137 | 162 | ||
| Lease liability payments | (818) | (902) | (1,897) | ||
| Equity dividends paid | (5,499) | (14,291) | (15,880) | ||
| Net cash outflow from financing activities | (6,209) | (15,056) | (17,615) | ||
| Decrease in cash and cash equivalents for the period | (5,645) | (8,424) | (10,393) | ||
| Cash and cash equivalents at beginning of the period | 65,488 | 75,881 | 75,881 | ||
| Cash and cash equivalents at end of the period | 59,843 | 67,457 | 65,488 | ||
| JAMES LATHAM PLC | |||||
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||||
| Attributable to owners of the parent company | |||||
| Issued capital £000 | Share-based payment reserve £000 | Capital reserve £000 | Retained earnings £000 | Total equity £000 | |
| As at 1 April 2024 (audited) | 5,040 | 152 | 398 | 213,027 | 218,617 |
| Profit for the period | - | - | - | 10,158 | 10,158 |
| Other comprehensive income: | |||||
| Actuarial loss on defined benefit pension scheme | - | - | - | (1,167) | (1,167) |
| Deferred tax relating to components of other comprehensive income | - | - | - | 292 | 292 |
| Foreign translation charge | - | - | - | (35) | (35) |
| Total comprehensive income for the period | - | - | - | 9,248 | 9,248 |
| Transactions with owners: | |||||
| Dividends | - | - | - | (14,291) | (14,291) |
| Exercise of options | - | (36) | - | 36 | - |
| Deferred tax on share options | - | 2 | - | - | 2 |
| Own shares movement | - | - | - | 137 | 137 |
| Share-based payment expense | - | 79 | - | - | 79 |
| Total transactions with owners | - | 45 | - | (14,118) | (14,073) |
| Balance at 30 September 2024 (unaudited) | 5,040 | 197 | 398 | 208,157 | 213,792 |
| Profit for the period | - | - | - | 7,988 | 7,988 |
| Other comprehensive income: | |||||
| Actuarial gain on defined benefit pension scheme | - | - | - | 785 | 785 |
| Deferred tax relating to components of other comprehensive income | - | - | - | (777) | (777) |
| Foreign translation charge | - | - | - | 33 | 33 |
| Total comprehensive income for the period | - | - | - | 8,029 | 8,029 |
| Transactions with owners: | |||||
| Dividends | - | - | - | (1,589) | (1,589) |
| Exercise of options | - | 30 | - | (30) | - |
| Deferred tax on share options | - | (3) | - | - | (3) |
| Own shares movement | - | - | - | 25 | 25 |
| Share-based payment expense | - | 226 | - | - | 226 |
| Total transactions with owners | - | 253 | - | (1,594) | (1,341) |
| Balance at 31 March 2025 (audited) | 5,040 | 450 | 398 | 214,592 | 220,480 |
| Profit for the period | - | - | - | 9,658 | 9,658 |
| Other comprehensive income: | |||||
| Actuarial loss on defined benefit pension scheme | - | - | - | (399) | (399) |
| Deferred tax relating to components of other comprehensive income | - | - | - | 219 | 219 |
| Foreign translation charge | - | - | - | 441 | 441 |
| Total comprehensive income for the period | - | - | - | 9,919 | 9,919 |
| Transactions with owners: | |||||
| Dividends | - | - | - | (5,499) | (5,499) |
| Exercise of options | - | (34) | - | 34 | - |
| Own shares movement | - | - | - | 108 | 108 |
| Share-based payment expense | - | 197 | - | - | 197 |
| Total transactions with owners | - | 163 | - | (5,357) | (5,194) |
| Balance at 30 September 2025 (unaudited) | 5,040 | 613 | 398 | 219,154 | 225,205 |
JAMES LATHAM PLC
NOTES TO THE HALF YEARLY REPORT
1. The results presented in this report are unaudited and they have been prepared in accordance with the recognition and measurement principles of International Accounting Standards in conformity with the requirements of the Companies Act 2006 and on the basis of the accounting policies expected to be used in the financial statements for the year ending 31 March 2026. The half yearly report does not include all the disclosures that would be required for full compliance with IFRS. The figures for the year ended 31 March 2025 are extracted from the statutory accounts of the group for that period.
- The directors propose an interim dividend of 8.1p per ordinary share which will absorb £1,633,000 (2024: 7.95p absorbing £1,605,000), payable on 23 January 2026 to shareholders on the Company's Register at the close of business on 5 January 2026. The ex-dividend date is 2 January 2026.
- This half yearly report does not constitute statutory financial accounts within the meaning of section 434 of the Companies Act 2006. The statutory accounts for the year ended 31 March 2025 were filed with the Registrar of Companies. The audit report on those financial statements was not qualified and did not contain a 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) or (3) of the Companies Act 2006. The half yearly report has not been audited by the Company's auditor.
- 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.
| Six months to 30 Sept 2025 unaudited | Six months to 30 Sept 2024 unaudited | Year to 31 March 2025 audited | |
|---|---|---|---|
| £000 | £000 | £000 | |
| Net profit attributable to ordinary shareholders | 9,658 | 10,158 | 18,146 |
| Number '000 | Number '000 | Number '000 | |
| Weighted average share capital | 20,146 | 20,131 | 20,129 |
| Add: diluted effect of share capital options issued | 24 | 63 | 46 |
| Weighted average share capital for diluted earnings per ordinary share calculation | 20,170 | 20,194 | 20,175 |
| 5. Net cash flow from operating activities | |||
| Six months to 30 Sept 2025 unaudited | Six months to 30 Sept 2024 unaudited | Year to 31 March 2025 audited | |
| £000 | £000 | £000 | |
| Profit before tax | 12,825 | 13,591 | 24,281 |
| Adjustment for finance income and cost | (1,711) | (2,258) | (4,088) |
| Depreciation and amortisation | 2,924 | 2,475 | 5,524 |
| Profit on disposal of property, plant and equipment | (73) | (24) | (454) |
| Increase in inventories | (5,189) | (5,173) | (3,986) |
| (Increase)/decrease in receivables | (1,879) | 283 | (702) |
| Increase in payables | 2,949 | 2,427 | 147 |
| Net defined benefit cost recognised in income statement | 204 | 185 | 2,845 |
| Cash funding of defined benefit scheme | (115) | (62) | (148) |
| Share-based payments non cash amounts | 197 | 79 | 305 |
| Cash generated from operations | 10,132 | 11,523 | 23,724 |
- Copies of this statement will be posted on our website , www. lathamtimber.co.uk/investors A copy can be emailed or posted upon application to the Company Secretary, James Latham plc, Unit C2, Breakspear Park, Breakspear Way, Hemel Hempstead, Herts, HP2 4TZ, or by email to plc@lathams.co.uk
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