Annual financial statement
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James Latham plc ("James Latham" or "the Company") Preliminary Results Chairman’s statement I am very pleased to report good trading results for the financial year to 31 March 2025. The financial year to 31 March 2025 was a year that started off with challenging market conditions, but one where we were expecting market conditions to improve during the second half of this financial year. However, we did not see the expected improvement until the final quarter. Product v alues were stable for the first half of the year, but we saw some weakness in our commodity products in the second half of the year. During the second half of the year we saw a significant competitor go into administration which caused some short term pressure on margins in some products groups as they quickly turned their stock into cash. Global supply chains have been much easier this year, although container rates did fluctuate quite dramatically during the course of the year. Due to the market conditions, we did see a continuing trend of a shift in product mix to some lower value products as customers looked to purchase cheaper and more cost effective products. Despite all these challenges, these positive results are a further demonstration of the ability of the business to make the most of any market conditions and turn them into opportunities. Revenue for the financial year to 31 March 202 5 was £366.6m, up slightly on last year’s £366.5m. Like for like volumes taking into account working days and acquisitions, increased by 2.2%, with growth of 2.4% on delivered business from our own warehouses. The cost price of our products is on average 3.5% higher (2024: 3.4% lower) than at the start of the financial year . We continue to see a move in the product mix of our sales towards cheaper alternative products. Whilst we have gained market share in these products, the lower price per tonne has resulted in reduced revenues. Gross profit percentage for the financial year to 31 March 2025 was 16.8% compared with 16.9% in the previous financial year, with product mix and a more competitive environment resulting in margins reducing slightly below our long term average . Despite inflation remaining high, operational overheads have been well controlled . Included within overheads is £2.5m one -off pension charge relating to a change in the definition of pensionable salaries. Despite this, there is still a considerable surplus recorded under IAS19 for the final salary pension scheme. Profit before tax is £ 24.3m, compared with last year’s £30.3m. Profit after tax for the year is £ 18.1m compared with last year’s £22.7m. Earnings per ordinary share is 90.1p compared with last year’s 112.7p. As at 31 March 2025 net assets have increased to £220.5m (2024: £218.6m). Inventory levels have increased to £65.7m from £ 61.7m last year . Current trade and other receivables at the year end were £ 0.6m higher than the previous year with our measure of debtors days unchanged from the previous year. Bad debts have remained small at 0.13% (2024: 0.11%) of revenues. Cash and cash equivalents of £65.5m (2024: £75.9m) remain strong. Final dividend The Board has declared a final dividend of 27.3p per Ordinary Share (2024: 26.0p). The dividend is payable on 22 August 2025 to ordinary shareholders on the Company’s register at close of business on 1 August 2025. The ex-dividend date will be 31 July 2025. The total dividend per ordinary share of 35.25p for the year (2024: 33.75p) is covered 2.6 times by earnings (202 4: 3.3 times), not including the special dividend of 45p per ordinary share which was declared in the previous financial year. Current and future trading The gradual trend to improved market conditions that we have seen in the final quarter of this financial year has continued into the new financial year, with a slight improvement in the trading margin and also our trading volumes. We are not seeing any pri ce weakness in our product portfolio, and our manufacturers have significant cost pressures on raw materials and wages which should lead to some price inflation over the coming financial year. Demand for our solid timber products, which has been more chall enging during this financial year, are showing signs of improvement which we believe will continue.
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The majority of our customers are more confident at the moment, with better orders books than at the same period last year. We are mindful of the geopolitical risks, including the effect that tariffs could have on some of our products which could cause some unexpected challenges during the course of the current financial year. Container rates have been fluctuating due to uncertainties with tariffs. The 90 day tariff reprieve has created an increase in short term freight causing prices to increase, but this could change quite quickly. Development Strategy The board are continually focused on developing the business and ensuring that the business is in the best position to make the most of all the future opportunities that will arise. The service levels and product range we offer our customers continues to be critical to our future success. Following our complete end to end review of our supply chain, the outcome was that we should consider investing in a National Distribution Centre. T his facility would enable the business to further improve the service it offers to our customers, increase our product range and most importantly allow the business to take control of its supply chain so that our customers can rely on the exceptional servi ce that we give. We are currently reviewing the options, and once finalised, this is expected to be a two to three year project. The consideration of this investment shows our intention to remain market leader in our sector and future proof the business for many years to come. During this financial year we implemented a warehouse management system (“WMS”) into our Thurrock depot which has been a huge success. We are currently working on rolling this out through the business over the next few years. We have purchased our site in Scotland and also invested in more melamine racking to further improve our product range for our customers. We continue to invest in racking at our sites to maximise the space and increase the product range for our customers. We have been through a rebranding process where we now have renamed Dresser Mouldings as Latham Timber Manufacturing, IJK are now James Latham Ireland and Abbey Woods are James Latham Dublin. Nick Latham Chairman 25 June 2025 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: 01442 849 100 Nick Latham, Chairman David Dunmow, Finance Director SP Angel Corporate Finance LLP Tel: 0203 470 0470 Matthew Johnson / Charlie Bouverat (Corporate Finance) Abigail Wayne / Rob Rees (Corporate Broking)
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JAMES LATHAM PLC CONSOLIDATED INCOME STATEMENT For the year to 31 March 2025 unaudited audited Year to 31 March 2025 Year to 31 March 2024 £000 £000 Revenue 366,610 366,514 Cost of sales (including warehouse costs) (305,162) (304,415) Gross profit 61,448 62,099 Selling and distribution costs (27,407) (24,225) Administrative expenses (13,848) (11,731) Operating Profit 20,193 26,143 Finance income 4,435 4,313 Finance costs (347) (194) Profit before tax 24,281 30,262 Tax expense (6,135) (7,601) Profit after tax attributable to owners of the parent company 18,146 22,661 Earnings per ordinary share (basic) 90.1p 112.7p Earnings per ordinary share (diluted) 89.9p 112.6p All results relate to continuing operations.
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year to 31 March 2025 unaudited Audited Restated 2025 2024 £000 £000 Profit after tax 18,146 22,661 Other comprehensive income that will not be classified subsequently to profit and loss: Actuarial (loss)/gain on defined benefit pension scheme (382) 5,770 Deferred tax relating to components of other comprehensive income (485) 212 Other comprehensive income that may be classified subsequently to profit and loss: Foreign translation charge (2) (252) Other comprehensive income for the year, net of tax (869) 5,730 Total comprehensive income attributable to owners of the parent company 17,277 28,391
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JAMES LATHAM PLC COMPANY REGISTRATION NUMBER 65619 CONSOLIDATED BALANCE SHEET For the year to 31 March 2025 unaudited Audited Restated 2025 2024 £000 £000 Assets Non-current assets Goodwill 1,193 1,193 Other intangible assets 985 1,152 Property, plant and equipment 49,902 39,989 Right-of-use-assets 8,100 8,363 Trade and other receivables 936 789 Retirement and other benefit obligation 13,778 15,864 Total non-current assets 74,894 67,350 Current assets Inventories 65,695 61,709 Trade and other receivables 65,312 64,757 Cash and cash equivalents 69,117 75,881 Tax receivable 436 - Total current assets 200,560 202,347 Total assets 275,454 269,697 Current liabilities Lease liabilities 1,473 1,373 Trade and other payables 35,607 35,456 Interest bearing loans and borrowings 3,629 - Tax payable - 408 Total current liabilities 40,709 37,237 Non-current liabilities Interest bearing loans and borrowings 592 592 Lease liabilities 6,915 7,298 Deferred tax liabilities 6,758 5,953 Total non-current liabilities 14,265 13,843 Total liabilities 54,974 51,080 Net assets 220,480 218,617 Capital and reserves Issued capital 5,040 5,040 Share-based payment reserve 450 152 Capital reserve 398 398 Retained earnings 214,592 213,027 Total equity attributable to shareholders of the parent company 220,480 218,617
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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 2023 – audited 5,040 124 398 190,013 195,575 Prior period adjustment - - - 1,733 1,733 Restated balance at 1 April 2023 5,040 124 398 191,746 197,308 Profit for the year - - - 22,661 22,661 Other comprehensive income: Actuarial gain on defined benefit pension scheme - - - 5,770 5,770 Deferred tax relating to components of other comprehensive income (restated) - - - 212 212 Foreign translation charge - - - (252) (252) Total comprehensive income for the year - - - 28,391 28,391 Transactions with owners: Dividends - - - (7,348) (7,348) Exercise of options - (32) - 32 - Deferred tax on share options - (20) - - (20) Own shares movement - - - 206 206 Share-based payment expense - 80 - - 80 Total transactions with owners - 28 - (7,110) (7,082) Balance at 31 March 2024 – audited (restated) 5,040 152 398 213,027 218,617 Profit for the year - - - 18,146 22,661 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 – unaudited 5,040 450 398 214,592 220,480
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JAMES LATHAM PLC CONSOLIDATED CASH FLOW STATEMENT For the year to 31 March 2025 unaudited audited 2025 2024 £000 £000 Net cash flow from operating activities Cash generated from operations 23,724 29,563 Interest paid (46) (48) Income tax paid (6,659) (5,943) Net cash inflow from operating activities 17,019 23,572 Cash flows from investing activities Interest received and similar income 3,442 3,560 Purchase of property, plant and equipment (13,464) (5,595) Proceeds from sale of property, plant and equipment 225 67 Net cash outflow from investing activities (9,797) (1,968) Cash flows from financing activities Purchase of treasury shares - (6) Exercise of share options 162 212 Lease liability payments (1,897) (1,190) Equity dividends paid (15,880) (7,348) Net cash outflow from financing activities (17,615) (8,332) (Decrease)/increase in cash and cash equivalents for the year (10,393) 13,272 Cash and cash equivalents at beginning of the year 75,881 62,609 Cash and cash equivalents at end of the year 65,488 75,881
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JAMES LATHAM PLC Notes to the unaudited preliminary financial information 1. The preliminary financial information presented in this report is unaudited a nd 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 20 24 and 31 March 2025, 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 27.3p per ordinary share, which will absorb £5,499,000 (2024: 26.0 plus a special dividend of 45.0p absorbing £ 14,314,000), payable on 22 August 202 5 to shareholders on the Register at the close of business on 1 August 2025. The ex-dividend date is 31 July 2025. 3. The figures for the year ended 31 March 2025 are unaudited. The figures relating to 31 March 2024 have been extracted from the statutory accounts for that year, and restated for a prior year adjustment relating to deferred taxation on the final salary pension scheme surplus . The statutory accounts for the year ended 31 March 2025 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 20 25 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 Statutory accounts for the year ended 31 March 20 24 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 25 June 2025. 5. Net cash flow from operating activities Year to 31 March 2025 unaudited Year to 31 March 2024 audited £000 £000 Profit before tax 24,281 30,262 Adjustment for finance income and cost (4,088) (4,119) Depreciation and amortisation 5,524 4,271 (Profit)/loss on disposal of property, plant and equipment (454) 35 (Increase)/decrease in inventories (3,986) 5,780 (Increase)/decrease in receivables (702) 1,236 Increase/(decrease) in payables 147 (5,862) Net defined benefit cost recognised in income statement 2,845 387 Cash funding of defined benefit scheme (148) (2,507) Share-based payments non cash amounts 305 80 Cash generated from operations 23,724 29,563
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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 2025 unaudited Year to 31 March 2024 audited £000 £000 Net profit attributable to ordinary shareholders 18,146 22,661 Number ‘000 Number ‘000 Weighted average share capital 20,129 20,112 Add: diluted effect of share capital options issued 46 14 Weighted average share capital for diluted earnings per ordinary share calculation 20,175 20,126 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 20 August 2025 at 9.00am.