James Latham (LTHM) H2 2025 earnings summary

Executive summary

• Revenue for the year ended 31 March 2025 was £366.6m, flat compared to £366.5m in 2024, with like-for-like volumes up 2.2% and delivered business from warehouses up 2.4%.

• Net profit attributable to shareholders was £18.1m, down 19.9% year-over-year, with earnings per share at 90.1p (2024: 112.7p).

• Gross profit margin slightly decreased to 16.8% from 16.9% due to product mix and competitive pressures.

• Cash and cash equivalents stood at £65.5m, down 13.7% from the prior year.

• The Board declared a final dividend of 27.3p per share, bringing the total dividend to 35.25p, covered 2.6 times by earnings.

Financial highlights

• Operating profit was £20.2m, down from £26.1m in 2024.

• Profit before tax was £24.3m, compared to £30.3m last year.

• Return on capital employed was 9.1%, down from 12.1% in 2024.

• Inventory increased to £65.7m from £61.7m, with stock turn at 5.9 times (target: 6.5 times).

• Bad debts remained low at 0.13% of revenues.

Outlook and guidance

• Trading margin and volumes have improved slightly in the new financial year, with no current price weakness in the product portfolio.

• Cost pressures on raw materials and wages are expected to lead to some price inflation.

• Demand for solid timber products is showing signs of improvement.

• Geopolitical risks and tariffs could pose challenges, especially with fluctuating container rates.

• Investment in a National Distribution Centre is under review, expected to be a two to three year project.