Final Results

Latham(James) PLC
14 June 2001


James Latham PLC 

Chairman's Statement for Year Ended 31 March 2001. 

Results 

Recurring operating profit from continuing businesses is £2,910,000 
compared to £1,994,000 previously. 

Pre-tax profit for the year is £3,026,000 against £5,113,000 for the previous
year.  This year's profit includes a non recurring income of £250,000.  Last
year included profit of £3,031,000 from the sale of Latham Timber & Building
Supplies and since the year end, we have completed our withdrawal from this
activity with the sale of our 50% interest in G.A. Day Timber Centres Ltd. 

Turnover from continuing operations for the year to 31 March 2001 is
£83,008,000 against £77,825,000. a 6.7% increase.  Profit after tax is
£2,084,000.  Earnings per Ordinary share are 40.1p against 89.6p for 2000
(29.5p for 2000, excluding the profit attributable to the sale of Latham
Timber and Building Supplies). 

Final Dividend 

The Directors recommend a final dividend of 10p per Ordinary Share (8.5p 2000)
an increase of 18%.  This is to be paid on 14 August 2001 to Shareholders on the
Register at the close of business on 13 July 2001.  The shares will become ex-
dividend on 11 July 2001.  The total dividend per Ordinary Share of 14.5p for
2001 is covered 2.8 times by earnings.  This compares with a total dividend for
2000 of 22.5p which included a special dividend of 10p. 

Trading Year 

The period to 31 March 2001 has produced a much improved result.  Most trading
units returned better figures than the year before with improved margins and
controlled overheads. 

Lathams Ltd, with depots at Clapton (London), Ossett (Yorkshire), Wigston
(Leicester), Yale (South Gloucester) and Eastleigh (Hampshire) had a successful
year.  The Company trades in Hardwoods, Softwoods and Panel Products.  Demand
from our wide ranging customer base remained at a good level throughout the
year. 

In particular, our Timber departments produced excellent results.  Generally
prices were firm throughout the year, although there was some evidence of
prices of North American timbers weakening towards the end of the financial
year. 

Our Panel Products departments produced reasonable results under difficult
circumstances.  There was over-production of most items of Panel products in
which we trade, leading to weak prices and severe competition.  The prices of
many of these items are substantially lower than they were 10 years ago. 

Nevill Long Ltd is the Company within the James Latham Group which distributes
suspended ceiling systems, drylining products and partitioning systems.  Nevill
Long produced a very acceptable profit, its best result to date.  There was good
demand from interior contractors who constitute the majority of Nevill Long's
customers.  Over-production of ceiling tiles and plasterboard continues to keep
prices and margins in check. 


Future Trading 

Demand for our products continues to be buoyant and the downturn in trade in
other parts of the world does not yet appear to have had much of an impact on
our market.  Sales in April and May are ahead of the same months last year. 

In July we will be opening two new depots, one in Hemel Hempstead, the other
at Dudley in the West Midlands.  This will enable us to service existing
customers more efficiently and enhance our ability to attract new ones in
those areas.  We are also searching for suitable premises to which we can
relocate from our site at Clapton which is being sold for development.  The
costs of relocation and establishing these new depots will arise before we 
receive The proceeds of sale for The Clapton site.  This will have an adverse
impact on our profits in the current year. 

James Latham PLC is in a strong financial position which will enable it to
take advantage of opportunities to expand the Group.

Roger J. Latham 
Chairman



JAMES LATHAM PUBLIC LIMITED COMPANY 
CONSOLIDATED CASH FLOW STATEMENT 


For the year ended 31 March 2001 

£'000s                                        2001              2000 

Cashflow from operating activities                    2,915             1,796
Dividend received from associate                         28                35 

Returns on investments and servicing 
of finance
Interest received and similar income         170                 264
Interest paid                               (202)               (435)
Preference dividend paid                     (79)                (79)

Net cash outflow from returns on 
investments and servicing of finance                   (111)             (250)

Taxation                                               (623)             (570)

Capital expenditure and financial 
investment 
Purchase of tangible fixed assets           (132)               (303)           
Sale of own shares                            34                   2
Proceeds of sale of tangible fixed 
assets and property                           27                  31
                                                         
Net cash outflow from capital 
expenditure and financial
investment                                              (71)             (270) 
          
Acquisitions and disposals                                -             7,524

Equity dividends paid                                  (649)           (1,067)
                                                                   
Cash inflow before use of liquid
resources and financing                               1,489             7,198
 
Management of liquid resources 
Sale (purchase) of UK listed investments                200               (82)

Financing
Bank loans repaid during year               (667)             (1,166)
Short term borrowings (repaid) obtained 
during the year                                -              (1,176)
Capital element of finance lease and hire
purchase payments                            (24)                 (8)

Net cash outflow from financing                        (691)           (2,350) 
                                                             
Increase in cash for the year                           998             4,766


Reconciliation of net cash flow to 
movement in net debt
                                                                              
Increase in cash for the year                998               4,766
Cash outflow from decrease in debt and
lease financing                              691               2,350
Cash (inflow) outflow from increase in
liquid resources                            (200)                 82
                                           
Movement in net debt for the year                     1,489             7,198
    
Net cash (debt) at 1 April 2000                         643            (6,555)
  
Net cash at 31 March 2001                             2,132               643
 

JAMES LATHAM PUBLIC LIMITED COMPANY 
CONSOLIDATED PROFIT AND LOSS ACCOUNT 

For the year ended 31 March 2001 

£'000s                                        2001              2000 
                                                                              
Turnover                                  
 Continuing operations                    83,008              77,825
 Discontinued operations                       -               8,047
                                     
Total Turnover                                       83,008            85,872
                       
Cost of sales                                       (68,651)          (71,438)  
                     
Gross profit                                         14,357            14,434

Distribution costs                        (5,859)             (6,276)           
Administrative expenses                   (5,470)             (6,105)           
Other operating income                       132                 136            
                       
                                                    (11,197)          (12,245)  
     
Operating profit                                       
 Continuing operations                     3,160               1,994            
 Discontinued operations                       -                 195            
             
Total operating profit                                3,160             2,189

Profit on disposal of subsidiary         
undertaking                                               -             3,031
Share of operating (loss)/profit 
in Associates                                            (5)               31
Interest receivable and similar income                   80               291   
Interest payable and similar charges                   (209)             (429)

Profit on ordinary activities before                  3,026             5,113 
taxation

Tax on profit on ordinary activities                   (942)             (590)  
                  
Profit on ordinary activities after    
taxation                                              2,084             4,523   
                                  
Dividends (including non-equity                                             
dividends)                                             (804)           (1,196)
                     
Retained profit                                       1,280             3,327   
           
Basic Earnings per ordinary share                      40.lp             89.6p  
            
Diluted Earnings per ordinary share                    40.1p             89.0p  
            

 
 
JAMES LATHAM PUBLIC LIMITED COMPANY 
CONSOLIDATED BALANCE SHEET 

As at 31 March 2001 

£'000s                                        2001              2000 
                                                                            
Fixed assets                                                            
 Intangible fixed assets                                464               490   
 Tangible fixed assets                                4,788             4,887   
 Investments                                            536               639   

                                                      5,788             6,016   
 
                                  
Current assets                                          
Stocks - goods for resale                 13,271              12,306    
Debtors                                   17,888              17,220    
Investments                                1,177               1,467     
Cash at bank and in hand                   2,469               1,782
     
                                          34,805              32,775    

Creditors: amounts falling due 
within one year                          (13,556)            (12,335)  

Net current assess                                   21,249            20,440
    
Total assets less current liabilities                27,037            26,456   


Creditors amounts falling due after
more than one year                                     (867)           (1,550)  


Provisions for liabilities and charges 
                                     
Deferred taxation                                      (117)             (130)  

Other provisions                                       (584)             (587)  

  
Total net assets                                     25,469            24,189   


Represented by:                                                         

Capital and reserves 
                                                   
Called up share capital                               6,027             6,027   
Capital reserve                                           3                 3   
Revaluation reserve                                     149               149   
Profit and loss account                              19,290            18,010   


Shareholders' funds                                  25,469            24,189   


Attributable to equity shareholders                  24,482            23,202   


Attributable to non-equity shareholders                 987              987