James Latham's FY10 profit increases to GBP 5.59 million ($8.5 million)

Jul 08, 2010. /Lesprom Network/. Specialist panel and timber distributor James Latham plc reported an increase in profit for fiscal year 2010, citing good trading performance during the year. The company also said it is in a strong financial position to take advantage of opportunities that will occur in the current trading climate. For the fiscal, profit before tax increased to GBP 5.59 million ($8.5 million) from GBP 4.17 million ($6.3 million) in the previous year. Profit attributable to equity shareholders of the parent company grew to GBP 4.11 million ($6.2 million) from GBP 2.27 million ($3.4 million) in the prior year. Revenues for the year improved to GBP 115.37 million ($174 million) from GBP 113.9 million ($172 million) posted in fiscal 2009. Gross margin percentage was 1 percentage point higher than the year earlier. Operating profit was GBP 6.44 million ($9.7 million), up 69%, compared to GBP 3.81 million ($5.8 million) a year ago. The company stated that international market for hardwood and panel products fell sharply in the second half of fiscal 2009 resulting in falling timber product prices, which continued into the opening months of fiscal 2010. However, as the year progressed, supply was cut, prices stabilized and volumes gradually improved, the company added. According to the company, the improvement in demand seen in the second half of last year has continued into the first quarter of the current fiscal. Peter Latham, Chairman said, "The future level of demand continues to be uncertain, as cuts in Government spending will affect some areas of activity. With demand still fragile, it is unclear how quickly higher prices will be established. It is a difficult climate in which to forecast far ahead." In addition, the directors propose a final dividend of 5.25 pence per share, to shareholders of record on August 6, 2010, payable on August 27.