James Latham (LTHM) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 September 2024 was £186.6m, down 2.3% year-over-year, with sales volumes up 4.1% but a shift toward lower-priced products.

• Gross profit margin declined to 16.3% from 16.8% due to margin pressure in timber products, especially from increased competition in uncertified hardwoods.

• Operating profit fell to £11.3m from £14.5m, and profit before tax dropped to £13.6m from £16.4m compared to the same period last year.

• Earnings per share decreased to 50.5p from 61.5p year-over-year.

• Net assets increased to £210.4m from £203.8m, with cash and cash equivalents rising to £67.5m despite a special dividend payment.

Financial highlights

• Revenue: £186.6m (down 2.3% year-over-year).

• Gross profit: £30.3m (down from £32.1m year-over-year).

• Operating profit: £11.3m (down from £14.5m year-over-year).

• Profit after tax: £10.2m (down from £12.4m year-over-year).

• Interim dividend increased to 7.95p per share (2023: 7.75p).

Outlook and guidance

• Market conditions remain challenging, with no improvement seen in the second half of 2024/25 so far.

• Full-year results for 2024/25 are expected to fall slightly below last year's, with market recovery not anticipated until mid-2025.

• New product lines and specialist hires aim to capture market share amid competitor exits.