Final Results

Latham(James) PLC
20 June 2002



James Latham Plc 

Chairman's Statement for Year Ended 31 March 2002

Results

Turnover this year is £86,178,000 against £83,008,000 last year, an increase of
3.8%. Operating profit for the year is £2,405,000 compared to £2,826,000 last
year.

Pre-tax profit is £2,770,000 against £3,026,000 previously. This year's result
includes a £107,000 profit on the sale of our 50% interest in G.A.Day Timber
Centres Ltd. Last year's result included £250,000 of non-recurring income.

Profit after tax is £1,971,000. Earnings per Ordinary Share are 37.8p against
40.1p for 2001. Last year's post-tax profit was £2,084,000.

At the year end, Shareholders' Funds are £26,560,000 against £25,469,000 last
year, a 4.3 % increase. 

Payment discounts which were previously included in cost of sales are now
included in 'interest receivable and similar income'. Comparative figures have
been restated accordingly.

Final Dividend

The Directors recommend a final dividend of 11 p per Ordinary Share (10p 2001),
an increase of 10%. This is to be paid on 20 August 2002 to Shareholders on the
register at the close of business on 19 July 2002. The shares will become ex
dividend on 17 July 2002.

The total dividend per Ordinary Share of 16 p for the year is covered 2.4 times
by earnings. This compares with a total dividend of 14.5p for the previous year
which was covered 2.8 times.

Trading Year

The part of the economy in the UK which the Company serves has again been
remarkably resilient despite the vicissitudes that have beset the world scene
during the financial year.      

As forecast in last year's Chairman's Statement, the gradual withdrawal of
business from our Clapton site and the establishment of new depots has reduced
profits.

During the year, we relocated head office and the accounts department from
Clapton to Hemel Hempstead, we closed the moulding mill and found suitable
premises to which the panel products and timber trading departments can
relocate. We were also involved at length in the planning process for the
Clapton site.

Lathams Ltd, the timber products distribution company, had a reasonable year
under the circumstances. The combined profit earned by the panel products
departments was slightly ahead of last year. This was encouraging, as the
increased profits earned by the existing depots more than covered the start-up
losses sustained at the two new depots. The profit achieved by the timber
departments was considerably below last year due to lower prices adversely
affecting sales and margins.

Demand eased for Nevill Long Ltd's suspended ceiling systems, partitioning and
drylining products resulting in a small reduction in sales and net profit.

New Lathams Ltd depots were established at Hemel Hempstead and Dudley (West
Midlands) and plans laid for a new Nevill Long depot at West Bromwich which is
now trading.

Current year

The new Lathams Ltd depots, at Hemel Hempstead and Dudley, have now passed
breakeven and are expected to make a useful contribution to Group profit.

A planning application was submitted to the London Borough of Hackney in October
2001 for mixed use redevelopment of Clapton. Determination of the application
could take several more months. This will delay completion of the sale of the
site.

Freehold premises at Purfleet have been purchased to which the Clapton timber
department will relocate in December. We are also negotiating the purchase of
premises for the Clapton panel products department and expect to move by the end
of the year.    

Some one-off costs and disruption from the relocation will be inevitable and
Group borrowings will rise until the proceeds of the Clapton sale are received.

Our trading depots generally remain busy and Group sales for April and May are
substantially ahead of last year. 

A report on the first quarter's trading position will be made at the AGM on the
16th August 2002.

Roger J Latham 
Chairman

20th June 2002

JAMES LATHAM PUBLIC LIMITED COMPANY 
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 March 2002 

£'000s                                    2002                2001
                                    
Turnover                                          86,178                 83,008
Cost of sales                                    (72,224)               (68,985)
 
Gross profit                                      13,954                 14,023
Distribution costs                      (6,299)              (5,859)
Administrative expenses                 (5,378)              (5,470)
Other operating income                     128                  132
                                                 (11,549)               (11,197)
Operating Profit                                   2,405                  2,826

Share of operating profit/(loss) 
  in Associates                                       18                     (5)
Profit on disposal of associated 
  undertaking                                        107                      -
Interest receivable and similar 
  income                                             401                    414
Interest payable and similar 
  charges                                           (161)                  (209)

Profit on ordinary activities 
  before taxation                                   2,770                 3,026

Tax on profit on ordinary activities                 (799)                 (942)

Profit on ordinary activities after taxation        1,971                 2,084

Dividends (including non-equity dividends)           (880)                 (804)

Retained profit                                     1,091                 1,280

Earnings per ordinary share                          37.8p                 40.1p

Diluted Earnings per ordinary share                  37.7p                 40.1p

JAMES LATHAM PUBLIC LIMITED COMPANY 
CONSOLIDATED BALANCE SHEET
As at 31 March 2002

£000s                                            2002             2001

Fixed assets          
Intangible fixed assets                               438                   464
Tangible fixed assets                               7,814                 4,788
Investments                                           481                   536
                                                    8,733                 5,788

Current assets          
Stocks - goods for resale                 13,316                13,271
Debtors                                   19,428                17,888
Investments                                  389                 1,177
Cash at bank and in hand                     421                 2,469
                                          33,554                34,805

Creditors: amounts falling due 
  within one year                        (13,830)              (13,556)

Net current assets                                 19,724                21,249

Total assets less current liabilities              28,457                27,037

Creditors: amounts falling due after 
more than one year                                 (1,118)                 (867)

Provisions for liabilities and charges          
Deferred taxation                                    (165)                 (117)
Other provisions                                     (614)                 (584)

Total net assets                                   26,560                25,469

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                            20,381                19,290
Shareholders' funds                                26,560                25,469

Attributable to equity shareholders                25,573                24,482
Attributable to non-equity shareholders               987                   987

JAMES LATHAM PUBLIC LIMITED COMPANY 
CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 March 2002

£000s                                         2002              2001

Cash flow from operating activities                   892                 2,581
Dividend received from associate                        7                    28

Returns on investments and servicing 
of finance          
Interest received and similar income     474                    504
Interest paid                           (125)                  (202)
Preference dividend paid                 (79)                   (79)
 
Net cash outflow from returns on
  investments and servicing of finance                270                   223 

Taxation                                           (1,041)                 (623)


Capital expenditure and financial 
  investment
Purchase of tangible fixed assets     (2,084)                  (132) 
(Purchase)/sale of own shares            (98)                    34 
Proceeds of sale of tangible fixed
assets and property                       24                     27

Net cash outflow from capital 
  expenditure and financial 
    investment                                     (2,158)                  (71)

Acquisitions and disposals
Proceeds on sale of investment in 
  associated undertaking                              255 

Equity dividends paid                                (751)                 (649)

Cash (outflow) inflow before use 
  of liquid resources and financing                (2,526)                1,489

Management of liquid resources
Sale of UK listed investments                         715                   200

Financing
Bank loans repaid during year           (667)                  (667) 
Capital element of finance 
  lease and hire purchase payments         -                    (24)
 
Net cash outflow from financing                      (667)                 (691)
(Decrease) increase in cash for the year           (2,478)                  998

Reconciliation of net cash flow to 
  movement in net funds

(Decrease) increase in cash for 
  the year                            (2,478)                   998     
Cash outflow from decrease in debt 
  and lease financing                    667                    691     
Cash inflow from increase in 
  liquid resources                      (715)                  (200)     

Movement in net funds for the year                 (2,526)                1,489
Net funds at 1 April 2001                           2,132                   643

Net (debt)/funds at 31 March 2002                    (394)                2,132




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