Final Results

Latham(James) PLC
25 June 2004

James Latham plc

Announcement of Preliminary Results for the year ended 31 March 2004 and
Chairman's Statement

Results

Turnover for the year is £97,546,000 against £91,797,000 last year, an increase
of 6.3%.

Operating profit is £2,791,000 compared with £1,395,000 last year.  Last year's
operating profit was adversely affected by a SSAP24 pension charge of £737,000
and relocation costs of £348,000.

Pre-tax profit is £3,029,000 against last year's £1,643,000.

Profit after tax is £2,108,000 (2003 £1,326,000) and earnings per Ordinary Share
are 40.9p (2003 25.0p).

Final Dividend

The Directors recommend a final dividend of 12.5p per Ordinary Share (2003
11.0p).  This is to be paid on 23 August 2004 to Shareholders on the register at
the close of business on 30 July 2004.  The shares will become ex-dividend on 28
July 2004.

The total dividend per Ordinary Share of 18p for the year is covered 2.3 times
by earnings.  This compares with a total dividend last year of 16.25p which was
covered 1.5 times.

Trading Year 2003/04

The net profit before tax of £3,029,000 was a substantial increase on the
previous year, which was affected by exceptional costs, and was achieved despite
the Company paying £474,000 more in pension contributions.  The pension
contributions look set to continue at a high level for the foreseeable future.

At Lathams Ltd, the market for our products throughout the trading year was
reasonably buoyant although some customers in the manufacturing sector found it
increasingly difficult to remain competitive producing in the UK.  Fortunately,
we supply a diverse range of industries.  Sales, and particularly net profit,
were well ahead of the previous year.

The new sales and distribution depots at Thurrock and Purfleet, which commenced
trading in January 2003 on the closure of Clapton, returned profits in their
first full financial year.

Although the commercial market for suspended ceilings, partitioning and
drylining systems was subdued and trading conditions fiercely competitive,
Nevill Long Ltd increased turnover by 5% and returned to profit after a small
loss the previous year.

During the year, the Company sold its 38.89% interest in Singer Plywood Co. Ltd
realising a small profit of £18,000.  Singer Plywood had been tenants on our
Clapton site and were considered a non-core activity.

Current Year 2004/05

Sales for the first three months, namely April, May and June, of the current
financial year have started well and are comfortably ahead of the same period
last year.

Towards the end of the 2003/04 financial year, the prices of some panel products
increased substantially.  This has continued into the current year and is, at
least in the short term, enhancing gross margin.

Although the current year has started well, timber importing and distribution
remains volatile and we are mindful of the effects that world demand and the UK
economy have on our trading.

In December 2003, the planning application on our Clapton site went to Appeal
having been refused by the London Borough of Hackney.  Confirmation was received
on 23 June 2004 that the office of the Deputy Prime Minister has granted
planning consent.  Our appointed professional valuers have now begun to
negotiate the current market value of our Clapton site with the buyer's agents.
A further announcement will be made when agreement is reached on the value.


Roger Latham
Chairman
25.06.04


CONSOLIDATED PROFIT AND LOSS ACCOUNT JAMES LATHAM PLC

For the year ended 31 March 2004


£'000s                                                              2004                        2003

Turnover                                                                   97,546                     91,797

Cost of sales                                                             (81,427)                   (76,874)
Gross profit                                                               16,119                     14,923

Selling and distribution costs                             (7,701)                       (7,613)
Administrative expenses                                    (5,850)                       (5,989)
Other operating income                                       223                           74
                                                                          (13,328)                   (13,528)
Operating Profit                                                           2,791                       1,395

Share of operating profit in Associates                                      4                          74
Profit on disposal of associated undertaking                                 18                          -
Interest receivable and similar income                                      444                         428
Interest payable and similar charges                                       (228)                       (254)
Profit on ordinary activities before taxation                              3,029                       1,643
Tax on profit on ordinary activities                                       (921)                       (317)
Profit on ordinary activities after taxation                               2,108                       1,326

Dividends (including non-equity dividends)                                 (975)                       (887)
Retained profit                                                            1,133                        439

Earnings per ordinary share                                                40.9p                       25.0p
Diluted Earnings per ordinary share                                        40.7p                       24.9p



The Group has no recognised gains or losses other than the results shown above.
All activities are classed as continuing.


CONSOLIDATED BALANCE SHEET JAMES LATHAM PLC

As at 31 March 2004


£'000s                                                                2004                       2003
Fixed assets

Intangible fixed assets                                                       385                        411
Tangible fixed assets                                                        12,976                    12,806
Investments                                                                   205                        537
                                                                             13,566                    13,754
Current assets

Stocks - goods for resale                                     14,668                      14,185

Debtors                                                       22,249                      19,049
Cash at bank and in hand                                        590                        1,012
                                                              37,507                      34,246
Creditors: amounts falling due within one year               (19,867)                    (17,344)
Net current assets                                                           17,640                    16,902

Total assets less current liabilities                                        31,206                    30,656
Creditors: amounts falling due after more than one year                     (2,707)                    (3,260)
Provisions for liabilities and charges

Other provisions                                                             (367)                      (397)
Total net assets                                                             28,132                    26,999

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                                                      21,953                    20,820
Shareholders' funds                                                          28,132                    26,999

Attributable to equity shareholders                                          27,145                    26,012
Attributable to non-equity shareholders                                       987                        987




CONSOLIDATED CASH FLOW STATEMENT JAMES LATHAM PLC

For the year ended 31 March 2004


£'000s                                                                 2004                      2003
Cash flow from operating activities                                           1,978                    3,815

Dividend received from associate                                               18                       21
Returns on investments and servicing of finance

Interest received and similar income                              444                      369
Interest paid                                                    (223)                    (160)
Preference dividend paid                                         (79)                      (79)
Net cash inflow from returns on investments and servicing of
finance                                                                        142                      130
                                                                               
Taxation                                                                      (624)                    (859)

Capital expenditure and financial investment

Purchase of tangible fixed assets                                (624)                   (5,330)
Purchase of own shares                                           (74)                      (20)
Proceeds of sale of own shares                                     1                        -
Proceeds of sale of tangible fixed assets and property            26                        11
Net cash flow from capital expenditure and financial
investment                                                                    (671)                   (5,339)
                                                                              
Acquisition and disposals

Proceeds on sale of investment in associated undertaking                       392                       -
Equity dividends paid                                                         (820)                    (808)

Cash outflow before use of liquid resources and financing                      415                    (3,040)

                                                                               
Management of liquid resources

Sale of UK listed investments                                                   -                       448
Financing

Bank loans repaid during year                                    (523)                    (667)

Other creditors                                                  (700)                    (500)

Bank loans obtained during the year                                -                      3,568

Net cash (outflow) inflow from financing                                     (1,223)                   2,401

Decrease in cash for the year                                                 (808)                    (191)



Decrease in cash for the year                                    (808)                    (191)

Cash (inflow) outflow from (increase) decrease in financing
from increase in financing                                       1,223                   (2,401)
                                                                 

Cash inflow from increase in liquid resources                      -                      (448)

Movement in net debt for the year                                              415                    (3,040)

Net debt at 1 April 2003                                                     (4,634)                  (1,594)

Net debt at 31 March 2004                                                    (4,219)                  (4,634)


Notes to the preliminary announcement

1.       The financial information in this announcement does not constitute
statutory accounts as defined in section 240 of the companies Act 1985.
Statutory accounts for the previous financial year ended 31 March 2003 have been
delivered to the Registrar of Companies. The auditors' report on those accounts
was unqualified and did not contain any statement under section 237(2) or (3) of
the Companies Act 1985. The auditors have indicated that they intend to give an
unqualified report, and will not contain any statement under section 237(2) or
(3) of the Companies Act 1985, on the statutory accounts for the year ended 31
March 2004. Copies of the Company's Report and Accounts will be sent to
shareholders shortly and will be available at the registered office of the
company: Unit 3, Swallow Park, Finway Road, Hemel Hempstead, Herts HP2 7QU.

2.       The consolidated accounts include the accounts of the Company and its
subsidiary undertakings and have been prepared using acquisition accounting
principles.

3.       The basic earnings per share are calculated on the weighted average
number of shares in issue during the year of  4,958,000 (2003: 4,980,000). The
fully diluted earnings per share takes account of the outstanding options which
results in a weighted average number of shares in issue during the year of
4,983,000 (2003: 5,001,000).

4.       The directors recommend payment of a final dividend of 12.5p per
ordinary share (2003: 11.0p).




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