LONDON, July 2, 2026, 14:09 (BST)
- Shares in James Latham traded at 1,102p, up 8.04%, at 13:55 BST after the company posted its annual results.
- Revenue was up 7.2% at £393.0 million. Pretax profit came in 3.3% higher at £25.1 million.
- The shares were changing hands at around 0.96 times reported net assets, off a £222.16 million market cap and £232.3 million in net assets at year end.
- Cash dropped as capex increased. The National Distribution Centre is still set to be fully operational by end-2027.
James Latham Plc (LON:LTHM) climbed Thursday after the AIM-listed timber and panels group posted stronger yearly profit. But the focus stayed on valuation, with shares still trading just under book value despite an 8% jump.
The stock traded at 1,102p at 13:55 BST, up 82p. Google Finance gave a market cap of £222.16 million. Volume was 16,420 shares, ahead of the average 9,930. About £181,000 of stock changed hands at that price, which isn’t much for such a big move.
The company put out its early numbers via RNS at 0700 BST. Full-year revenue to March 31 climbed to £393.0 million, up from £366.6 million. Pretax profit moved up to £25.1 million from £24.3 million. Earnings per share gained to 92.5p, compared with 90.1p.
| Year to March 31 | 2026 | 2025 | Change |
|---|---|---|---|
| Revenue | £393.0 mln | £366.6 mln | up 7.2% |
| Gross margin | 16.5% | 16.8% | down 0.3 points |
| Pretax profit | £25.1 mln | £24.3 mln | up 3.3% |
| EPS | 92.5p | 90.1p | up 2.7% |
| Net assets | £232.3 mln | £220.5 mln | up 5.4% |
| Total dividend | 36.70p | 35.25p | up 4.1% |
The table spells out that profits didn’t keep up with revenues. Gross margin dropped to 16.5% from 16.8% as the lower-margin timber pack side expanded and competition weighed on some product lines. The company said like-for-like volumes gained 7.7%. Product costs averaged 0.9% less than at the year’s start.
Nick Latham, chair, said the year “felt quite challenging,” but the group saw performance pick up each quarter on both volume and margin. He noted a key competitor entered administration in the second half, hitting some margins in the short term, though that turned into an opportunity by the last quarter. Investegate
Asset value is now key for the stock. At the 1,102p level, with reported EPS and Google Finance’s market cap, James Latham was on about 11.9x earnings and 0.96x book. Cash stood at £51.2 million, which was close to 23% of the market cap.
| Market read-through | Figure |
|---|---|
| Shares last traded at | 1,102p |
| Day change | +8.04% |
| Market cap | £222.16 mln |
| Price to book | 0.96x |
| P/E for FY2026 | 11.9x |
| Cash as % of market cap | 23.0% |
| Yield based on FY2026 dividend | 3.3% |
Cash flow lagged in the results. Net operating cash inflow climbed to £19.3 million from £17.0 million, but spending on property, plant and equipment almost doubled to £26.3 million from £13.5 million. That put cash flow after capex around £7.0 million in the red before financing.
The fall in cash is a key point as James Latham is still spending through the cycle. Cash and cash equivalents dropped to £51.2 million, down from £65.5 million. Inventories moved higher to £72.9 million from £65.7 million. Trade and other receivables also increased. The company said debtor days stayed flat and bad debts were still low at 0.10% of revenue.
The board raised the final dividend to 28.6p per share, up from 27.3p. That brings the total payout for the year to 36.70p. The dividend will be paid Aug. 21 to shareholders on the register by July 31, with shares going ex-dividend July 30. Annual earnings covered the payout 2.5 times.
Latham said trading momentum at the end of last year continued into this year, with margin and volume per working day up a bit. Customer demand is “quite patchy,” he said, and supplier price increases are showing up, linked to higher energy, oil and freight costs from the Middle East conflict. Investegate
The company said right now it isn’t facing any supply trouble, but it did warn that if the conflict keeps up and shipping through the Strait of Hormuz stays tight over the next few months, shortages of some oil by-products could hit production.
James Latham still has the National Distribution Centre as its core capital project, saying it is on schedule to be fully up and running by the end of 2027. The company also wants to deploy its warehouse management system to every depot over the next three years, after it was introduced in Hemel Hempstead and as Purfleet is lined up next.
