Aim-listed James Latham (LTHM) has once again delivered a strong set of results. Well-established brands in both the timber and panel business divisions performed well in the year to the end of March, with an increase in volumes helping to boost revenue.
An increased share of turnover from specialist products helped push margins up by 1.4 percentage points, resulting in a 25 per cent increase in operating profits to £13.2m. However, growth was slower during the second half of the year due to falling wood and panel prices. The company also had to nurse higher overheads due to "extra volumes and longer warehouse hours” as management implemented its plans to provide longer trading hours and later deadlines for next-day delivery.
Trading in the current year has started well, with revenues for April and May up 4 per cent on the same period last year and the gross margin continuing to expand. But management included a word of caution that growth is beginning to slow, and the volatility of sterling presented a challenge.
House broker Northland Capital Partners is expecting 2017 adjusted pre-tax profits of £11.6m giving adjusted EPS of 47.1p, down from £12.9m and 53.5p in FY2016.
JAMES LATHAM (LTHM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 623p | MARKET VALUE: | £121m | |
| TOUCH: | 610-635p | 12-MONTHHIGH: | 752p | LOW: 595p |
| DIVIDEND YIELD: | 2.3% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 367p | NET CASH: | £15.8m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 144 | 7.2 | 31.9 | 9.8 |
| 2013 | 143 | 7.0 | 28.7 | 10.2 |
| 2014 | 163 | 10.5 | 44.3 | 11.4 |
| 2015 | 175 | 10.1 | 40.3 | 12.5 |
| 2016 | 186 | 12.9 | 53.7 | 14.3 |
| % change | +6 | +27 | +33 | +14 |
Ex-div:04 Aug Payment:26 Aug | ||||
