LONDON (Alliance News) - James Latham PLC on Thursday reported increases in both revenue and pretax profit for its first half to the end of September, which it said resulted from higher prices of imported goods.
The timber products company said the weak pound was pushing up prices for its products, resulting in a 4.2% year-on-year increase in revenue to GBP100.3 million from GBP96.2 million. However, James Latham noted this could also cause pressure on its margins in the coming months.
For the first half, James Latham said its pretax profit increased 22% to GBP7.7 million from GBP6.3 million and said trading margins for the period were higher than the prior year.
Overheads were "well controlled" and bad debt remained "lower than expected", the group said.
James Latham declared an interim dividend of 4.50 pence per share, up from 4.00p per share the prior year.
James Latham signalled its revenue had continued to grow in October and the first half of November, though at slightly lower margins, and said market conditions continued to be tough in some areas.
However, James Latham said it was trading comfortably in line with market expectations and was progressing with its plans to relocate its two oldest depots.
Shares in James Latham were up 3.6% at 686.00p on Thursday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Latham Timber (LTHM)