Latham builds on success as profits soar 56%

TIMBER supplier James Latham saw interim profits jump 56 per cent as the group benefited from good demand and higher prices.

Pre-tax profits for the half-year to the end of September rose to 4.5 million from 2.9m 12 months before on a 21 per cent increase in sales to 59.3m.

The group, which distributes panel products, hardwoods and softwoods, said steady demand and higher prices increased volume of sales and margins.

Good levels of trading were seen in October and November but prices dropped slightly on certain products and margins have returned to normal levels.

Peter Latham, chairman of the 48.5m market cap company, said: "The company's strategy of becoming less dependent on commodity products, where prices and margins are prone to wide fluctuations, will be beneficial in what are becoming tougher trading conditions."

The group has declared an interim dividend of 2.5p per share compared to 2p in the same period last year.

Last month, the company bought its previously-leased head office and warehouse at Hemel Hempstead in Hertfordshire for 5.25m.