James Latham H1 Profit Falls, But Revenue Improves

James Latham Plc (LTHM.L), a distributor of timber, panels, and decorative surfaces, on Thursday reported a decline in earnings for the first-half, particularly reflecting a rise in cost of sales and distribution expenses. However, the company posted a increase in revenue.

In addition, the firm has raised its interim dividend for the period.

For the six-month period to September 30, the UK-based firm posted a pre-tax income of 23.660 million pounds, lesser than last year’s 34.031 million pounds.

After tax, profit stood at 19.054 million pounds or 95.2 pence per share, down from 26.568 million pounds or 133 pence per share of the fist-half of 2021.

Operating earnings stood at 23.527 million pounds as against 34.133 million pounds of previous fiscal.

Cost of sales, including warehouse costs rose to 171.443 million pounds from last year’s 142.822 million pounds. Selling and distribution costs were at 12.147 million pounds, versus 11.058 million pounds of 2021.

James Latham generated revenue of 212.797 million that improved from 193.937 million pounds a year ago.

The Board has declared an increased interim dividend of 7.25 pence per share against last year’s 6.5 pence per share. The dividend will be payable on January 27, to shareholders of record on December 30.

Looking ahead, the company said: “The second half of 2022-23 has started with slightly weaker volumes than the previous six months to September 30, 2022, with margins also slightly lower than in the same period. The supply chain has become easier over the past six months, with fewer extended lead times on our products. Cost prices of the majority of our products are stable at the moment, but there are still uncertainties as to the effect of energy costs and other inflationary pressures on the overheads for our key manufacturers…”

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