James Latham PLC on Thursday reported a weaker interim performance and predicted annual results ‘slightly below’ the year prior as a market recovery is taking longer than expected to materialise.

James Latham shares were down 7.8% at 1,190.00 pence each on Thursday afternoon in London.

The Hemel Hempstead, England-based distributor of timber, panels and decorative surfaces said pretax profit in the six months ended September 30 fell 17% year-on-year to £13.6 million from £16.4 million.

Revenue declined 2.3% on-year to £186.6 million, from £190.9 million.

James Latham raised its interim dividend by 2.6% to 7.95 pence per share from 7.75p.

‘We have seen considerable challenges in our marketplace, including a significant competitor going into administration and others looking to quickly turn inventories into cash, which has affected short-term margins in some product groups. This has created opportunities to increase our market share and enabled us to take on three new brands of melamine and laminate panel products as well as some key specialist salespeople to help promote these new products,’ James Latham said.

Nonetheless, it is yet to see the market improvement it anticipated for the second half of the year. Trading remains at ‘similar volumes’ to the first six months, with an anticipated pick-up ‘now not expected until the middle of 2025’.

Chair Nick Latham said the company remained ‘pleased’ with its performance, but predicts annual results slightly below those seen in financial 2024.

Revenue in the year to March 31, 2024 totalled £366.5 million, while pretax profit amounted to £30.3 million.

Copyright 2024 Alliance News Ltd. All Rights Reserved.