James Latham profit held back by growth in lower margin business

(Alliance News) - James Latham PLC on Thursday reported a drop in half-year profit, despite rising sales, as volume growth in a lower margin division pegged back earnings.

The Hemel Hempstead, England-based distributor of timber, panels and decorative surfaces said pretax profit fell 5.9% to GBP12.8 million in the six months to September from GBP13.6 million the year prior.

Revenue rose 5.5% to GBP196.8 million from GBP186.6 million, while cost prices on both timber and panels remained stable throughout the period.

Volumes rose 6.8% on-year, across both panels and timber products, with a significant element of this growth coming from an expansion of the Latham Direct Timber business.

The growth in LDT, which supplies customers directly at lower margins, dragged overall gross profit margin down to 16.2% from 16.3% a year prior.

The second half of the financial year has started with similar volumes to the previous six month period to 30 September 2025, with similar margins, and James Latham expects 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 firm added, while the merchant sector is still "finding growth difficult."

The dividend was raised 1.9% to 8.1p per share from 7.95p.

Shares in James Latham were down 1.9% at 1,006.00p each around midday in London on Thursday.

By Jeremy Cutler, Alliance News reporter

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