Latham Timber Share Price (LTHM)

Results significantly ahead of expectations. Really nice well run company and totally below the radar. As it grows this will change.

2nd half T/O of £170m with profit (if back 18% normal rate) about £30m. Makes earnings for the year of around 310p /share -a P/E of 4! Surely a decent dividend should be coming.

Hi Walkley. Do you have any idea of forecasts for 2022? Multiplying the EPS x 2, for an annual figure, gives a p/e of <5x which is ludicrously cheap. However, the statement is clearly indicating that such strong growth recently will not repeat itself in the second half and, like many other management statements, there are all refs to supply chains problems, rising prices etc. to err on the side of caution. Nonetheless, I cannot help but feel that the shares are way too cheap, especially considering the quality of the management team and prospects.

Operating profit was £34.1m, up £27.6m on the £6.5m profit for the same period last year. Profit before tax was £34.0m compared with £6.3m for the same period last year. The tax charge of £7.5m represents an effective rate of 21.9%, which includes an increased charge for deferred taxation following the announcement of a future increase in corporation tax to 25%. Earnings per ordinary share were 133.5p compared with 25.6 p for the same period last year.

"This revenue and margin increase together with our control of overheads has resulted in profit before tax for the first four months of this year being approximately the same as we achieved for the whole of the last financial year, namely a profit before tax of £18.6m."