Interim Results

Latham(James) PLC
24 November 2006

James Latham plc
Unaudited Interim Results
Six Months Ended 30 September 2006

Chairman's Statement

These are the first results since the disposal of Nevill Long Ltd on 31 March
2006.  I am pleased to report an improvement in pre-tax profit of 5.3% for the
first half year compared with the same period last year.  The balance sheet
remains strong and there has been a further reduction in the underfunding of the
pension scheme since this time last year.  The interim dividend has been
increased by 25%.

Results

Sales from continuing activities for the 6 months to 30 September 2006 were
£49,072,000 against £47,430,000 last year, a 3.5% increase.

The operating profit from continuing activities rose by 40.2% to £2,606,000
compared with £1,859,000 last year.

Pre-tax profit at £2,905,000 was up 5.3% on last year's £2,759,000 which
included the profit contribution from Nevill Long Ltd.

Earnings per Ordinary Share are 9.6p (2005 9.6p).

Interim Dividend

The Board has declared an interim dividend of 2.0p per Ordinary Share (2005
1.6p) which is covered 4.8 times (2005 6.0 times).  It is payable on 24 January
2007 to Ordinary shareholders on the Company's Register at the close of business
on 05 January 2007.  The ex-dividend date is 03 January 2007.

Six Months Trading to 30 September 2006

After a disappointing first six months last year, Lathams Ltd has performed very
satisfactorily in the six months to 30 September 2006.  The Company, which
distributes hardwoods, softwoods and panel products is, by design, becoming less
dependant on commodity products where prices and margins are more prone to wide
fluctuations.

Price increases in the first half of the financial year have had a beneficial
effect on sales and particularly on margins and the increased profit at Lathams
Ltd has replaced the shortfall in profit due to the sale of Nevill Long Ltd on
31 March 2006.

Current & Future Trading

Last year the Company experienced a difficult third quarter from October to
December 2005.  This year our management accounts show better trading in October
and so far November is looking reasonably favourable.

Whilst we expect prices to remain generally firm and a continuation of some
restrictions in supply, there are signs of weakness in some countries that are
currently not major suppliers to the UK market.  We are conscious that trading
conditions in terms of supply, demand and prices can change rapidly so we are
keeping a watchful eye on the situation to try to minimise any downside affects.

The Directors continue to attach great importance to the sourcing of legal and
sustainable supplies of timber products for resale which we believe will stand
the Company in good stead in the future.

Lathams Ltd is now the only trading company of James Latham plc after the
disposal of subsidiaries.  It is not the intention of the Board to downsize the
Company but rather to develop our remaining core timber products distribution
business as opportunities arise.  We are in a strong position.  Further cash of
some £10 million is due to be received in the next 12 months from the deferred
payments for the Clapton site and the sale of Nevill Long.  This sum is
currently shown under debtors in the balance sheet.

Pension Scheme

The funding position of the Company's final salary pension scheme is continually
changing in line with the rise and fall of the liabilities and assets.  After
very substantial contributions in the recent past, the scheme actuary's estimate
as at 30 June 2006 indicated that the funding position has improved
significantly to about 90% on an ongoing basis.  Since then an additional
substantial contribution has been made which will have further improved the
position.

Chairman

Next month I retire and Peter Latham takes over as Chairman.  I would like to
wish him every success in the role and also express my thanks to him, the other
directors, the staff and shareholders for their support over the past few years.

Early in 2007 your Company celebrates 250 years of trading and we are proud of
the fact that a family member has been at the helm every year since 1757.

Roger Latham
Executive Chairman
24 November 2006




JAMES LATHAM PLC
CONSOLIDATED BALANCE SHEET
As at 30 September 2006

                                                                  As at 30 Sept    As at 30 Sept   As at 31 March
                                                                 2006 unaudited   2005 unaudited     2006 audited
                                                                                   (as restated)    (as restated)
                                                                           £000             £000             £000
Fixed assets

Intangible fixed assets                                                     352              717              362
Tangible fixed assets                                                    11,296           11,826           11,438
                                                                         11,648           12,543           11,800
Current assets

Stocks - goods for resale                                                16,956           16,924           13,746
Debtors amounts falling due within one year                              28,309           30,163           32,073
Debtors: amounts falling due after more than one year                     4,419            7,753            5,919
Cash at bank and in hand                                                  1,251               35            1,399
                                                                         50,935           54,875           53,137
Creditors: amounts falling due within one year                         (16,760)         (20,087)         (17,623)
Net current assets                                                       34,175           34,788           35,514

Total assets less current liabilities                                    45,823           47,331           47,314
Creditors: amounts falling due after more than one year                 (1,841)          (4,123)          (2,208)
Provisions for liabilities and charges

Deferred taxation                                                             -             (62)                -
Other provisions                                                          (249)            (191)            (277)
Net assets excluding pension liability                                   43,733           42,955           44,829

Net pension liability                                                   (3,406)          (9,115)          (4,927)
Total net assets                                                         40,327           33,840           39,902

Represented by:
Capital and reserves

Called up share capital                                                   5,040            5,040            5,040
Less investment in own shares                                             (385)            (213)            (251)
Share-based payment reserve                                                  43                3               23
Capital reserve                                                               3                3                3
Revaluation reserve                                                         758              758              758
Profit and loss account                                                  34,868           28,249           34,329
Equity shareholders' funds                                               40,327           33,840           39,902




JAMES LATHAM PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months to 30 September 2006

                                                                  Six months to   Six months to           Year to
                                                                   30 Sept 2006    30 Sept 2005     31 March 2006
                                                                      unaudited       unaudited           audited
                                                                                  (as restated)     (as restated)
                                                                           £000            £000              £000
Turnover

Continuing activities                                                    49,072          47,430            90,650
Discontinued activities                                                       -          12,833            24,217

                                                                         49,072          60,263           114,867

Cost of sales (including warehouse costs)                              (40,281)        (49,799)          (94,937)

Gross profit                                                              8,791          10,464            19,930

Selling and distribution costs                                          (4,049)         (4,678)           (9,272)
Administrative expenses                                                 (2,233)         (3,280)           (5,892)
Other operating income                                                       97             100               202
Operating profit

Continuing activities                                                     2,606           1,859             3,419
Discontinued activities                                                       -             747             1,549
                                                                          2,606           2,606             4,968
Profit on disposal of subsidiary company                                     53               -             6,229
Loss on disposal of fixed asset                                               -               -               (8)
Net interest receivable                                                     246             153               439

Profit on ordinary activities before taxation                             2,905           2,759            11,628

Tax on profit on ordinary activities                                      (985)           (810)           (1,916)

Profit on ordinary activities after taxation                              1,920           1,949             9,712

Dividend paid - ordinary                                                  (880)           (731)           (2,449)
Retained profit                                                           1,040           1,218             7,263

Earnings per ordinary share (basic)                                        9.6p            9.6p             48.3p
Earnings per ordinary share (diluted)                                      9.6p            9.6p             48.2p




JAMES LATHAM PLC
CONSOLIDATED CASH FLOW STATEMENT
For the six months to 30 September 2006

                                                                   Six months to   Six months to          Year to
                                                                    30 Sept 2006    30 Sept 2005    31 March 2006
                                                                       unaudited       unaudited          audited
                                                                            £000            £000             £000
Cash flow from operating activities                                      (1,341)            (27)            5,489

Special contribution to pension fund                                     (4,500)               -          (4,000)

                                                                         (5,841)            (27)            1,489

Returns on investments and servicing of finance

Interest received and similar income                                         142             254            1,488
Interest paid                                                              (135)           (152)            (380)
Preference dividend paid                                                    (39)            (39)             (79)
Net cash inflow from returns on investments and servicing                   (32)              63            1,029
of finance
Taxation                                                                   (598)         (2,120)          (2,345)

Capital expenditure

Purchase of tangible fixed assets                                           (76)           (266)            (417)
Purchase of intangible fixed assets                                            -               -                -
Proceeds of sale of tangible fixed assets and property                     9,281           1,500            4,809
Net cash flow from capital expenditure                                     9,205           1,234            4,392
Equity dividends paid                                                      (880)           (731)          (2,449)

Cash inflow before financing                                               1,854         (1,581)            2,116

Financing

Bank loans repaid during the period                                      (1,857)           (357)            (714)
Finance leases repaid during the period                                      (6)             (8)             (25)
Purchase of own shares                                                     (168)            (10)             (36)
Proceeds of sale of own shares                                                29             104               92
Net cash outflow from financing                                          (2,002)           (271)            (683)
(Decrease) increase in cash for the period                                 (148)         (1,852)            1,433


(Decrease) increase in cash for the period                                 (148)         (1,852)            1,433
Movement in borrowings                                                     1,863             271              739
Movement in net debt for the year                                          1,715         (1,581)            2,172
Net debt at 1 April 2006 (restated)                                      (2,887)         (5,059)          (5,059)
Net debt at 30 September 2006                                            (1,172)         (6,640)          (2,887)




JAMES LATHAM PLC
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED
GAINS AND LOSSES

For the six months to 30 September 2006

                                                                    Six months to   Six months to          Year to
                                                                     30 Sept 2006    30 Sept 2005    31 March 2006
                                                                        unaudited       unaudited          audited
                                                                                    (as restated)    (as restated)
                                                                             £000            £000             £000
Profit for the period                                                       1,920           1,949            9,712
Actual return less expected return on pension scheme assets               (1,029)           2,030            3,950
Experience gains and losses arising from pension scheme
liabilities                                                                     -               -            1,028
Changes in assumptions underlying the present value of
pension scheme liabilities                                                    313         (2,349)          (5,242)
Movement in deferred tax relating to actuarial loss on
pension scheme                                                                215              96               79
Total recognised gains and losses relating to the period                    1,419           1,726            9,527




RECONCILIATION OF MOVEMENT SHAREHOLDERS' FUNDS
For the six months to 30 September 2006

                                                                    Six months to   Six months to          Year to
                                                                     30 Sept 2006    30 Sept 2005    31 March 2006
                                                                        unaudited       unaudited          audited
                                                                                    (as restated)    (as restated)
                                                                             £000            £000             £000
Profit attributable to shareholders                                         1,920           1,949            9,712
Dividends                                                                   (880)           (731)          (2,449)
                                                                            1,040           1,218            7,263
Other recognised gains and losses relating to the period                    (501)           (223)            (185)
Change in investment in own shares                                          (134)              90               49
Movement in share based payment reserve                                        20               3               23
Movement in the period                                                        425           1,088            7,150
Opening shareholders' funds                                                39,902          32,752           32,752
Closing shareholders' funds                                                40,327          33,840           39,902




JAMES LATHAM PLC

Notes to the preliminary announcement

1.       The results for the six months ended 30 September 2006 are unaudited
and prepared on the basis of the accounting policies set out in the Group
statutory accounts for the year ended 31 March 2006, except as modified for the
introduction of newly adopted accounting standard FRS 20 : Share-based payment
as set out in note 5.  The results for the year ended 31 March 2006 (prior to
adjustment for adoption of FR S20) are extracted from the statutory accounts,
and which have been filed with the Registrar of Companies.

2.       The directors propose an interim dividend of 2.0p per ordinary share
which will absorb £403,000 (2005: 1.6p absorbing £322,000), payable on 24
January 2007 to shareholders on the Register at the close of business on 5
January 2007. The ex-dividend date is 3 January 2007.

3.       This statement does not comprise full accounts within the meaning of
Section 240 of the Companies Act 1985.

4.       For the year ended 31 March 2006 the earnings per ordinary share
excluding the sale of Nevill Long was 17.1p (restated).

5.       The accounts have been prepared on the basis of the accounting policies
set out in the audited accounts for the year ended 31 March 2006 except for the
implementation of FRS 20 Share-based payment, which has been applied to all
grants of equity instruments after 7 November 2002 that were unvested at 1 April
2006. Equity settled share based payments (share options) are measured at fair
value at the date of grant. The fair value determined at the grant date is
expensed on a straight-line basis over the vesting period based on the
directors' estimate of shares that will eventually vest. Fair value is measured
by use of the Black-Scholes model.

All comparative figures have been reinstated to reflect this standard



The effect of adopting this accounting standard has been as follows:

                                                              Six months to     Six months to           Year to
                                                               30 Sept 2006      30 Sept 2005     31 March 2006
Profit and loss account                                           unaudited         unaudited           audited
                                                                       £000              £000              £000
Profit after tax before adoption of new accounting
standards                                                             1,940             1,952             9,728
FRS 20 adjustment                                                      (20)               (3)              (16)
Restated profit after tax after adoption of new accounting
standards                                                             1,920             1,949             9,712


Balance sheet

There is no impact on shareholders' funds at 30 September 2006, 30 September
2005 and 31 March 2006.


6.   Copies of this statement will be sent to all shareholders and will also be
available on written applications to the Company Secretary, James Latham plc,
Unit 3 Swallow Park, Finway Road, Hemel Hempstead, Herts, HP2 7QU.


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