Final Results

Latham(James) PLC
16 June 2000


JAMES LATHAM PUBLIC LIMITED COMPANY
YEAR ENDED 31 MARCH 2000.
CHAIRMAN'S STATEMENT

RESULTS

Pre-tax  profit for the year is £5,113,000 against £2,204,000  reported
for  the  previous  year. This includes a profit of £3,031,000  from  the
disposal of the Latham Timber & Building Supplies business on 1 November
1999. Turnover on our continuing operations was £77,825,000, compared  to
£74,036,000. Operating profit from these ongoing businesses of £1,994,000
compared  to  £2,128,000  has been reduced by non  recurring  expenditure
resulting from changes to the Group during the year. Interest payable has
been  cut  by  £214,000.  Profit after tax is  £4,523,000  compared  with
£1,552,000  for the previous year, reflecting the profit on  disposal  of
the Latham Timber and Building Supplies business which does not give rise
to  a  tax  liability due to the availability of brought forward  capital
losses.  As a result of the profit on disposal and the lower tax charge,
basic   earnings  per  Ordinary  share  are  89.6p  compared  with  29.7p
previously.

FINAL DIVIDEND

The  Board of Directors recommends a final dividend of 8.5p per  Ordinary
share  be paid on 15 August 2000 to Shareholders whose names are  on  the
Register on the close of business on 14 July 2000. The shares will become
ex-dividend  on 10 July 2000. This represents an increase of  lp  on  the
1999  final  dividend  per  Ordinary share.  Together  with  the  special
dividend,  total dividends per Ordinary share for the year of  22.5p  net
(11p net in 1999) are covered 4.0 times by earnings (2.7 times in 1999).


TRADING YEAR

This  has  been an encouraging and busy year with much change which  will
give  us  a  solid platform for the future development of the Group.  The
disposal  of  Latham  Timber  and Building Supplies  together  with  the
planned  move from our site at Clapton, will enable us to take  advantage
of  opportunities that may arise in our core activities and to do so from
a strong financial position. Although our trading has generally improved,
operating  profits have been held back by some non recurring  expenditure
and an addition to our provision for unfunded pensions.

On  the trading front Lathams Ltd. has increased sales during a year when
the  price of many of our products was generally lower. Volumes sold  are
higher and total gross margin earned has improved. This has lead to  some
good results from our timber trading. Panel products has sometimes been a
difficult  market with fluctuating prices and demand varying  around  the
country.

Nevill  Long  has had another good year. This is the first full  year  of
trading from the original five Nevill Long depots together with the three
further  Soarsett sites acquired in November 1998. Integration  has  gone
well  and  the  benefits have quickly shown up in  our  improved  result.
Following  the  sale of Latham Timber and Building Supplies,  the  Nevill
Long  accounting and central administration has relocated to a small 
office in Milton Keynes.

Our  balance sheet is strong, showing an increase in Shareholders'  Funds
of £3,327,000 compared with 1999, and net bank borrowings are now minimal
with  gearing  down  to  10%  from 32%. This will  enable  us  to  select
appropriate sites for servicing the South Eastern sector at a time of our
own  choosing  and  with  minimum disruption  to  our  business.  We  are
currently  completing a strategic review of these activities so  that  we
can take full advantage of this opportunity.

FUTURE TRADING

The market place for our products is encouraging and the current year has
started well with sales for April and May from our ongoing businesses  9%
ahead  of  last  year.  An up to date report on current  trading  will  be
presented  at  the  Annual General Meeting on Friday 11  August  2000  and
circulated to Shareholders.

David R Latham
Chairman

Enquiries: David Latham, Chairman
           David Dunmow, Finance Director
           Pippa Latham, Company Secretary

 

CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the year ended 31 March 2000

£000s                                     2000                1999
Turnover
   Continuing operations             77,825                74,036
   Discontinued operations            8,047                13,713
Total Turnover                                   85,872             87,749

Cost of sales                                   (71,438)           (73,526)

Gross profit                                     14,434             14,223

Distribution costs                   (6,276)               (6,181)
Administrative expenses              (6,105)               (5,770)
Other operating income                  136                   145
                                                (12,245)           (11,806)

Operating profit
   Continuing operations              1,994                 2,128
   Discontinued operations              195                   289
Total operating profit                            2,189              2,417

Profit on sale of property                           -                  67
Profit on disposal of subsidiary undertaking      3,031                 -
Share of operating profit in Associates              31                 82
Interest receivable and similar income              291                281
Interest payable and similar charges               (429)              (643)

Profit on ordinary activities before taxation     5,113              2,204

Tax on profit on ordinary activities               (590)              (652)

Profit on ordinary activities after taxation      4,523              1,552

Dividends (including non-equity dividends)       (1,196)              (625)

Retained profit                                   3,327                927

Basic Earnings per ordinary share                 89.6p              29.7p

Diluted Earnings per ordinary share               89.0p              29.6p



CONSOLIDATED BALANCE SHEET

As at 31 March 2000

£'000s                                      2000                  1999

Fixed assets
Intangible fixed assets                             490                  517
Tangible fixed assets                             4,887                6,214
Investments                                         639                  654
                                                  6,016                7,385
Current assets
Stocks - goods for resale            12,306               13,711
Debtors                              17,220               19,702
Investments                           1,467                1,358
Cash at bank and in hand              1,782                  115

                                     32,775               34,886

Creditors: amounts falling due 
within one year                     (12,335)             (18,551)

Net current assets                              20,440                16,335

Total assets less current liabilities           26,456                23,720

Creditors:  amounts falling due after more
            than one year                       (1,550)               (2,224)

Provisions for liabilities and charges
Deferred taxation                                 (130)                  (95)
Other provisions                                  (587)                 (539)

Total net assets                                24,189                20,862

Represented by:

Capital and reserves
Called up share capital                          6,027                 6,027
Capital reserve                                      3                     3
Revaluation reserve                                149                   312
Profit and loss account                         18,010                14,520

Shareholders' funds                             24,189                20,862

Attributable to equity shareholders             23,202                19,875
Attributable to non-equity shareholders            987                   987



CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 March 2000

£'000s                                      2000                1999

Cash flow from operating activities                    1,796           2,874
Dividend received from associate                          35              38


Returns on investments and servicing
 of finance

Interest received and similar income        264                 270
Interest paid                              (435)               (668)
Preference dividend paid                    (79)                (79)

Net cash outflow from returns on
 investments and servicing of finance                  (250)            (477)

Taxation                                               (570)            (484)


Capital expenditure and financial investment

Purchase of tangible fixed assets          (303)               (279)
Sale (purchase) of own shares                 2                 (36)
Proceeds of sale of tangible fixed
 assets and property                         31                 249

Net cash outflow from capital
 expenditure and financial investment                  (270)            (66)

Acquisitions and disposals                            7,524          (1,248)

Equity dividends paid                                (1,067)           (496)

Cash inflow before use of liquid
 resources and financing                              7,198             141


Management of liquid resources

Purchase of UK listed investments                       (82)            (52)


Financing

Bank loans repaid during year           (1,166)               (667)
Short term borrowings (repaid)
 obtained during the year               (1,176)                163
New finance lease and hire
 purchase agreements                         -                  42
Capital element of finance lease
 and hire purchase payments                 (8)                (12)


Net cash outflow from financing                      (2,350)          (474)

Increase (decrease) in cash for the year              4,766           (385)


Reconciliation of net cashflow to movement in net debt


Increase (decrease) in cash
 for the year                            4,766                (385)

Cash outflow from decrease in debt and
 lease financing                         2,350                 474
Cash outflow from increase
 in liquid resources                        82                  52

Movement in net debt for the year                     7,198            141
Net debt at 1 April 1999                             (6,555)        (6,696)

Net cash (debt) at 31 March 2000                        643         (6,555)