Trading Statement and Results of AGM

RNS Number : 7767J

Latham(James) PLC

25 August 2021

 

James Latham plc

(the "Company")

Trading Statement and Results of AGM

The Chairman of the Company is pleased to provide the following trading update:

Revenue for the first four months of the current financial year, namely 1 April to 31 July 2021 is £127m. This represents an increase in sales per working day of 34% compared with the three months ended 31 March 2021. Global demand for timber remains high, which has resulted in increased prices and shortages that have not been seen in the industry before. We continue to see large increases in container rates which have caused significant increases in the costs of our imported products. Volumes per working day are up 11% from the three months ended 31 March 2021, demonstrating that we have been able to meet the demands of our customers. Our aim throughout this period has been to ensure that our loyal customer base is kept supplied with product, despite the supply difficulties in the market.

Our ability to secure enough volume of products from our key suppliers and the unprecedented high demand has resulted in improved margins.

Overheads have been well controlled, and the level of bad debts is very low. Transport continues to be difficult with a shortage of drivers available for us and our hauliers, but everyone in the business has worked hard to successfully maintain our service levels at the same high standard as our customers would expect.

This revenue and margin increase together with our control of overheads has resulted in profit before tax for the first four months of this year being approximately the same as we achieved for the whole of the last financial year, namely a profit before tax of £18.6m.

The Company's strong cash position has helped to finance increased inventory levels to meet the demand from our customers. The supply difficulties though have meant that we have needed to invest in inventories which are increasingly taking longer to arrive in the UK and be available for sale.

Our customers remain busy, but there are concerns that shortages in other construction products will mean that there are likely to be delays on projects which will affect some of our customers.

The Board are very mindful that the timber industry has seen market conditions that are unlikely to ever be repeated, and more normal trading conditions will return, but at this stage we are cautiously optimistic that demand will be strong for the rest of the calendar year, but that margins will come under increasing pressure.

The Company's interim results for the six months ending 30 September 2021 will be announced on 25 November 2021.

Results of Annual General Meeting

The Annual General Meeting ("AGM") of James Latham plc took place at 12.00pm on Wednesday 25 August 2021. A quorum was present. Due to COVID-19 restrictions, the AGM took place behind closed doors and the resolutions were passed by proxy voting, the details of which are shown below.

There were 9,328,869 votes cast.

Resolution 1 - To receive and adopt the Directors' Report and Accounts for the year ended 31 March 2021 together with the Independent Auditor's report thereon. Votes in favour 9,232,585 or 99.88%. 84,991 votes were withheld. The resolution was passed.

Resolution 2 - To declare the final dividend recommended by the directors on the ordinary shares of the Company. Votes in favour 9,328,869 or 100%. The resolution was passed.

Resolution 3 - To re-elect Fabian French as a director, who retires by rotation. Votes in favour 9,322,573 or 99.97%. 3,720 votes were withheld. The resolution was passed.

Resolution 4 - To re-elect Paula Kerrigan as a director, who retires by rotation. Votes in favour 8,824,763 or 94.63%. 3,720 votes were withheld. The resolution was passed.

Resolution 5 - To re-elect David Dunmow as a director, who retires by rotation. Votes in favour 9,258,462 or 99.28%. 3,720 votes were withheld. The resolution was passed.

Resolution 6 - To re-elect Andrew Wright as a director, who retires by rotation. Votes in favour 8,596,776 or 92.30%. 15,013 votes were withheld. The resolution was passed.

Resolution 7 - To re-appoint RSM UK Audit LLP, Chartered Accountants, as auditors. Votes in favour 9,328,203 or 100%. 535 votes were withheld. The resolution was passed.

Resolution 8 - To approve the Directors authority to allot shares. Votes in favour 9,297,522 or 99.67%. 322 votes were withheld. The resolution was passed.

Resolution 9 - To approve the Disapplication of pre-emption rights. Votes in favour 8,907,481 or 96.36%. 84,778 votes were withheld. The resolution was passed.

Resolution 10 - To give Authority to the Company to purchase its own shares. Votes in favour 9,321,283 or 99.93%. 940 votes were withheld. The resolution was passed.

The shareholders had been given the option to ask questions to the board via email. The Company Secretary has confirmed that no questions have been received, that have not been dealt with in the Trading Statement.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014.

For further information please visit www.lathamtimber.co.uk/investors or contact:

James Latham plc	Tel: [phone]
Nick Latham, Chairman
David Dunmow, Finance Director
SP Angel Corporate Finance LLP
Matthew Johnson / Charlie Bouverat (Corporate Finance)	Tel: [phone]
Rob Rees (Corporate Broking)

 

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