Interim Results - 6 Months to 30 September 1999

Latham(James) PLC
25 November 1999

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 1999
INCORPORATING ANNOUNCEMENT OF SPECIAL DIVIDEND

Chairman's Statement

Results

Pre-tax profits for the half year have risen by 7% to £1,233,000 against
£1,149,000 reported for the first half year of last year.  Excluding the
property profit last year the underlying increase is 14%.  Turnover at
£46,063,000 has increased by 3.3%.  Earnings per share were 17.4p against
15.8p for the corresponding period last year.

As indicated at our AGM in August, the year started quietly with our sales not
helped by falling or static price levels for many of our products.  This trend
has not altered, but we are now starting to see some sales growth from higher
volumes into a more active market place.

Interim Dividend

The Board has declared an interim dividend of 4p per Ordinary share (1998:
3.5p) which is covered 4.4 times by earnings per share of 17.4p (1998: 4.5
times).

Latham Timber and Building Supplies

The sale of Latham Timber Centres (Holdings) Limited to the Grafton Group was
completed on 1 November 1999.  Whilst for the trading period up to the end of
September, higher margins contributed to an improved result, the disposal of
this business is expected to have a positive impact  on future earnings of the
Group.

Nevill Long Limited

Including our three new sites in the North, sales have increased by 38%, and
Nevill Long now constitutes 21% of the Group's continuing turnover.  Like for
like sales from our original five depots are up by 9%.  Gross margins have
improved, cost ratios are now more favourable, and overall profits are well
ahead of budget.

Lathams Limited

Sales are little changed.  Although volumes have started to increase in the
second quarter, the fall in price in a number of our products has made it
difficult to grow sales in value terms.  Gross margins have shown a useful
improvement across all our businesses but overall the net profit is below last
year.

Current Trading and Prospects

Following the sale of Latham Timber Centres (Holdings) Limited, the group
financial situation has been transformed with a strong balance sheet and
minimal borrowings.  The profit on the sale of this business - approximately
£3 million - will be included in our year end figures.  We can now focus on
our two core businesses and improve further the effectiveness of our national
coverage.

Trading remains highly competitive but we are well positioned to take
advantage of the general uplift in activity.  Although it seems possible that
business will temporarily slow down due to the extended holidays of our
customers over the millennium period, we would expect to continue to make
positive progress.

Special Dividend

Following the profitable disposal of Latham Timber Centres (Holdings) Limited,
the Directors have reviewed the financial position of the Group and consider
it appropriate to declare a special dividend of 10p per Ordinary share,
payable together with the interim dividend on 28 January 2000.  This special
dividend is not included within the unaudited interim results as the disposal
was completed on 1 November 1999.



David R Latham
Chairman

25 November 1999

Consolidated Profit And Loss Account
                                                                     Year to
                                       Six months to 30 September   31 March
                                                1999         1998       1999
                                           unaudited    unaudited    audited 
                                                £000         £000       £000 
Turnover - continuing operations              39,079       37,515     74,465 
         - discontinued operations             6,984        7,081     13,284 
                                              46,063       44,596     87,749 
Cost of sales(including warehouse costs)     (38,401)     (37,777)   (73,526)
Gross profit                                   7,662        6,819     14,223
                                   
Distribution costs                            (3,366)      (2,915)    (6,181)
Administrative expenses                       (2,956)      (2,696)    (5,770)
Other operating income                            69           72        145
                                              (6,253)      (5,539)   (11,806)
Operating profit                                   
        - continuing operations                1,240        1,182      2,230
        - discontinued operations                169           98        187 
                                               1,409        1,280      2,417 
Profit on sale of property                         -           67         67 
Share of profits of associated undertakings       36           50         82 
Net interest                                    (212)        (248)      (362)
Profit on ordinary activities before taxation  1,233        1,149      2,204 
Tax on profit on ordinary activities            (330)        (325)      (652)
Profit on ordinary activities after taxation     903          824      1,552
Dividends - preference                           (39)         (39)       (79)
          - ordinary                            (197)        (176)      (546)
Retained profit                                  667          609        927
Earnings per ordinary share                     17.4p        15.8p      29.7p

Notes:

1. The results for the six months ended 30 September 1999 and 30 September
1998 are unaudited and prepared on the basis of the accounting policies set
out in the Group statutory accounts for the year ended 31 March 1999.  The
results for the year ended 31 March 1999 are extracted from the statutory
accounts, on which the auditors issued an unqualified report, and which have
been filed with the Registrar of Companies.

2. The directors have declared an interim dividend of 4p per ordinary share
which will absorb £201,600 (1998: 3.5p absorbing £176,400), payable on 28
January 2000 to shareholders on the Register at the close of business on 6
January 2000.  The ex-dividend date is 29 December 1999.  This dividend is
accrued in the above figures.  The special dividend referred to in the
Chairman's statement of 10p per ordinary share has not been accrued in these
figures as it follows from the disposal of Latham Timber Centres (Holdings)
Limited that occurred on 1 November 1999.

3. Copies of this statement will be sent to all shareholders and will also be
available on written application to the Company Secretary, James Latham plc,
Leeside Wharf, Mount Pleasant Hill, London E5 9NG.

4. The Group had no recognised gains or losses for the six months to 30
September 1999 other than the results shown above.  The figures disclosed for
discontinued operations relate to the results of Latham Timber Centres
(Holdings) Limited for the six months to 30 September 1999, which was sold on
1 November 1999.

Consolidated Balance Sheet
                                                                       As at
                                               As at 30 September   31 March
                                                1999         1998       1999
                                           unaudited    unaudited    audited 
                                                £000         £000       £000
Fixed assets                                   
Intangible fixed assets                          504            -        517 
Tangible fixed assets                          6,194        6,097      6,214 
Investments                                      663          661        654 
                                               7,361        6,758      7,385  
   
Current assets                                   
Stocks - goods for resale                     14,108       13,198     13,711 
Debtors                                       21,003       19,681     19,702 
Investments                                    1,318        1,271      1,358 
Cash at bank and in hand                         272          249        115 
                                              36,701       34,399     34,886
Creditors: amounts falling
due within one year                          (20,074)     (17,609)   (18,551)
Net current assets                            16,627       16,790     16,335
                                   
Total assets less current liabilities         23,988       23,548     23,720 
Creditors:amounts falling due
after more than one year                      (1,887)      (2,537)    (2,224)
Provisions for liabilities and charges          (572)        (467)      (634)
Total net assets                              21,529       20,544     20,862
                                   
Represented by:                                   
Capital and reserves                                   
Called up share capital                        6,027       6,027       6,027 
Capital reserve                                    3           3           3 
Revaluation reserve                              312         312         312 
Profit and loss account                       15,187      14,202      14,520 
Shareholders' funds                           21,529      20,544      20,862 
Attributable to equity shareholders           20,542      19,557      19,875 
Attributable to non-equity shareholders          987         987         987