Final Results

Latham(James) PLC
28 June 2007

                                James Latham plc

      Announcement of Preliminary Results for the year ended 31 March 2007


Chairman's Statement

Results



Group turnover for continuing operations in the financial year to 31 March 2007
at £99,662,000 is 9.9% ahead of last year's £90,650,000.  Last year's group
total turnover was £114,867,000 and included £24,217,000 for Nevill Long
Limited, which was sold on 31 March 2006.



Operating profit for continuing operations increased by 46% to £4,989,000 from
£3,419,000 last year.



Net interest receivable was £634,000 against £439,000 last year.



Pre-tax profit is £5,706,000 against £11,628,000 last year which included
£6,221,000 of exceptional profit on the sale of Nevill Long Limited.



Profit after tax is £4,071,000 compared with £9,712,000 in the previous year.
Earnings per share is 20.5p.



Total net assets (shareholders' funds) after the FRS17 pension liability have
risen to £42,996,000 from £39,902,000.



Cash flow from operating activities is £3,240,000 before the final payment of £5
million of the £9 million to be paid into the pension scheme as previously
announced.



Final dividend



The directors recommend a final dividend of 5.4p per ordinary share (2006 4.4p).
  The final dividend will be paid on 31 August 2007 to shareholders on the
register at the close of business on 3 August 2007.  The shares will become
ex-dividend on 1 August 2007.



The total dividend per ordinary share of 7.4p for the year is covered 2.8 times
by earnings.



Financial year 2006/07



Following the sale of Nevill Long Limited last year, the Group's results are
based on the trading of Lathams Limited, a specialist panel and timber
distributor, where the performance shows a marked improvement on last year.
Turnover was almost 10% higher and a useful improvement in gross margin
percentage resulted in a marked increase in the operating profit. This more
than compensated for the loss of Nevill Long Limited profit.



International demand for timber products remained strong throughout the year and
with temporary shortages in some areas, prices increased.  This was noted in the
interim statement and this continued into the rest of the year.  However, timber
prices are cyclical and will come down.



Volumes handled are lower than the previous year reflecting the Company's move
to higher value products and away from the more cyclical commodity type items.



Following the Company's substantial contribution to the pension scheme the FRS17
deficit has been reduced to £2,123,000.  However the value of pension
liabilities is very sensitive to changes in interest rates.



Current financial year 2007/08 - April and May trading



Last year's trading climate had continued into this year and figures for April
and May are encouraging.



Development strategy



Following the disposal of the Clapton site and the Nevill Long Limited business,
the Company has cash of £9m at the year end.  The Directors have a programme for
upgrading the warehouses at the older sites by introducing high racking and
narrow aisles so that the changing product range can be handled more efficiently
using state of the art handling equipment. This has been started at Yate and
Wigston and will be carried out at Ossett during the current financial year.
There are plans to move the Dudley and Eastleigh depots which have outgrown
their existing sites.  Opportunities to extend the geographic coverage are being
pursued, as are other opportunities to grow the business through acquisition.



Past Chairman



Roger Latham retired as Chairman and Chief Executive in December 2006 after
working in the business for more than forty years, six as Chairman. The Board
records its thanks to Roger for his skill in managing the Company through a
period of great change.



Peter Latham
Chairman
28 June 2007




Further enquiries:


Peter Latham, Chairman                                   Tel:  [phone]
David Dunmow, Finance Director                           Tel:  [phone]

Blue Oar Securities Plc
Mike Coe, Director                                       Tel:  [phone]





CONSOLIDATED BALANCE SHEET

As at 31 March 2007


                                                                As at 31 March 2007        As at 31 March 2006
                                                                                              (as restated)
                                                                        £000                       £000

Fixed assets

Intangible fixed assets                                                              237                      362
Tangible fixed assets                                                             11,226                   11,438
                                                                                  11,463                   11,800
Current assets

Stocks - goods for resale                                                         16,405                   13,746
Debtors: amounts falling due within one year                                      27,870                   32,073
Debtors: amounts falling due after more than one year                                500                    5,919
Cash at bank and in hand                                                           8,872                    1,399
                                                                                  53,647                   53,137
Creditors: amounts falling due within one year                                  (18,219)                 (17,623)
Net current assets                                                                35,428                   35,514

Total assets less current liabilities                                             46,891                   47,314

Creditors: amounts falling due after more than one year                          (1,664)                  (2,328)
Provisions for liabilities                                                         (108)                    (157)

Net assets excluding pension liability                                            45,119                   44,829

Net pension liability                                                            (2,123)                  (4,927)
Total net assets                                                                  42,996                   39,902


Represented by:
Capital and reserves

Called up share capital                                                            5,040                    5,040
Investment in own shares                                                           (170)                     (47)
Share-based payment reserve                                                           56                       23
Capital reserve                                                                        3                        3
Revaluation reserve                                                                  758                      758
Profit and loss account                                                           37,309                   34,125
Equity shareholders' funds                                                        42,996                   39,902







CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the year ended 31 March 2007


                                                               Year to 31 March 2007      Year to 31 March 2006
                                                                                              (as restated)
                                                                        £000                       £000
Turnover

Continuing operations                                                             99,662                   90,650
Discontinued operations                                                                -                   24,217
                                                                                  99,662                  114,867
Cost of sales (including warehouse costs)                                       (82,031)                 (94,937)
Gross profit                                                                      17,631                   19,930

Selling and distribution costs                                                   (8,231)                  (9,272)
Administrative expenses                                                          (4,619)                  (5,892)
Other operating income                                                               208                      202
                                                                                (12,642)                 (14,962)
Operating profit

Continuing operations                                                              4,989                    3,419
Discontinued operations                                                                -                    1,549
                                                                                   4,989                    4,968
Profit on disposal of subsidiary                                                      83                    6,229
Loss on disposal of fixed assets                                                       -                      (8)
Net interest receivable                                                              634                      439
Profit on ordinary activities before taxation                                      5,706                   11,628
Tax on profit on ordinary activities                                             (1,635)                  (1,916)
Profit on ordinary activities after taxation                                       4,071                    9,712

Earnings per ordinary share (basic)                                                20.5p                    48.3p
Earnings per ordinary share (diluted)                                              20.4p                    48.2p






CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 March 2007

                                                                     Year to 31 March 2007      Year to 31 March 2006
                                                                               £000                        £000

Cash flow from operating activities before special
contribution to pension fund
                                                                                 3,240                    5,489
Special contribution to pension fund                                            (5,000)                  (4,000)
Net cash flow from operating activities                                         (1,760)                   1,489
Returns on investments and servicing of finance
Interest received and similar income                                               889                    1,488
Interest paid                                                                     (163)                    (380)
Preference dividend paid                                                           (79)                     (79)
Net cash flow from returns on investments and servicing
of finance
                                                                                   647                    1,029
Taxation                                                                          (757)                  (2,345)

Capital expenditure

Purchase of tangible fixed assets                                                 (186)                    (417)
Proceeds of sale of tangible fixed assets including                              3,946                    4,809
property
Net cash flow from capital expenditure                                           3,760                    4,392
Acquisitions and disposals

Proceeds of sale of investment in subsidiary undertaking                         9,228                        -

Equity dividends paid                                                           (1,278)                  (2,449)

Cash flow before financing                                                       9,840                    2,116
Financing

Bank loans repaid during the period                                            (2,214)                    (714)

Finance leases repaid during the period                                           (23)                     (25)

Purchase of own shares                                                           (130)                     (36)

Proceeds of sale of own shares                                                       -                       92

Net cash outflow from financing                                                (2,367)                    (683)

Increase in cash for the year                                                    7,473                    1,433



                                                               Year to 31 March 2007      Year to 31 March 2006

                                                                        £000                       £000

Increase in cash for the year                                                      7,473                    1,433

New finance lease                                                                  (106)                        -

Cash inflow from decrease in debt and lease financing                              2,237                      739

Movement in net funds (debt) for the year                                          9,604                    2,172

Net debt at 1 April 2006                                                         (2,887)                  (5,059)

Net funds (debt) at 31 March 2007                                                  6,717                  (2,887)







CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the year ended 31 March 2007


                                                                        Year to 31 March 2007      Year to 31 March 2006
                                                                                                        (as restated)
                                                                                  £000                       £000

Profit for the year                                                                4,071                    9,712
Actual return less expected return on pension scheme assets                        (114)                    3,950

Experience gains and losses from pension scheme liabilities                          (1)                    1,028
Changes in assumptions underlying the present value of                               673                  (5,242)
pension scheme liabilities

Movement in deferred tax relating to actuarial loss on                             (167)                       79
pension scheme

Total recognised gains and losses relating to the year                             4,462                    9,527






RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
For the year ended 31 March 2007


                                                                     Year to 31 March 2007      Year to 31 March 2006
                                                                                                      (as restated)
                                                                                  £000                       £000

Profit attributable to shareholders                                               4,071                    9,712
Dividends                                                                        (1,278)                  (2,449)

                                                                                  2,793                    7,263
Other recognised gains and losses relating to the year                              391                     (185)

Change in investment in own shares                                                 (123)                      49

Movement in share based payment reserve                                              33                       23

Movement in the year                                                              3,094                    7,150

Opening shareholders' funds                                                      39,902                   32,752

Closing shareholders' funds                                                      42,996                   39,902







NOTES TO THE ACCOUNTS



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 2006 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, which 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 2007.
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. Basic earnings per share are calculated on the weighted average number of
shares in issue during the year of 19,866,000 (2006: 19,963,000). 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
19,924,000 (2006: 19,993,000).

4. The directors recommend payment of a final dividend of 5.4p per
ordinary share (2006: 4.4p).

5. The taxation charge for the year ended 31 March 2006 as a percentage of
pre-tax profit was 16.5%. This is because the company took advantage of the
substantial shareholder exemption on the disposal of a subsidiary company, and
no taxation will arose on the sale. Proceeds of sale of tangible fixed assets
and property largely comprise continuing receipts from the sale of the Clapton
depot.

6. The accounts have been prepared on the basis of the accounting policies
set out in the audited accounts for the year ended 31 March 2007 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 restated to reflect this standard.

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

   
                                                                       Year to 31 March 2007      Year to 31 March 2006
                                                                                                       (as restated)
Profit and loss account
                                                                                £000                      £000
Profit before adoption of new accounting standards                             4,111                     9,728
FRS 20 adjustment                                                               (40)                      (16)
Restated profit after adoption of new accounting standards                     4,071                     9,712


Balance Sheet

There is no impact on shareholders' funds at 31 March 2007 or 31 March 2006.

7.  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, Hertfordshire, HP2 7QU.


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