Final Results

Latham(James) PLC
29 June 2006

                                James Latham plc

    Announcement of Preliminary Results for the year ended 31 March 2006 and
                              Chairman's Statement


Chairman's Statement

Results

Group turnover for the financial year to 31 March 2006 at £114,867,000 is 6.1%
ahead of last year's £108,240,000.

Operating profit increased by 20.2% to £4,984,000 from £4,148,000 last year.

Net interest receivable was £439,000 against net interest payable of £360,000
last year.

Including disposals, pre-tax profit is £11,644,000 against £21,594,000 last
year.  Excluding this year's profit on the disposal of a subsidiary and last
year's profit on the disposal of fixed assets, the pre-tax profit is £5,423,000
against £3,788,000, an increase of 43.2%.

Profit after tax is £9,728,000 compared with £17,312,000 previously.

Total net assets after the FRS17 pension liability (shareholders' funds) have
risen to £39,902,000 from £32,752,000.

Cash flow from operating activities at £1,545,000 was after the initial payment
of £4 million of the £9 million to be paid into the pension scheme as announced
at the Interim.

The presentation of the figures reflects the introduction of new Accounting
Standards FRS17, FRS21 and FRS25 and the previous figures have been restated.

Final dividend

The directors recommend a final dividend of 4.4p per ordinary share (2005:
3.7p).  The final dividend will be paid on 21 August 2006 to shareholders on the
register at the close of business on 21 July 2006.  The shares will become
ex-dividend on 19 July 2006.

The total dividend per ordinary share (including the special dividend of 7.0p
paid in January 2006) of 13p for the year is covered 3.7 times by earnings.
Excluding the special dividend and the profit on the sale of Nevill Long Ltd,
the total of 6p for the year is covered 2.8 times by earnings of 17.1p.  This
compares with a total dividend last year of 5.2p which was covered 2.8 times.

Financial year 2005/06

The overall trading result for the Group shows an improvement on last year.

Lathams Ltd, the panel products and timber distributor achieved a 3% increase in
turnover but after a small decline in gross margin percentage the net profit was
lower than last year.  Globally the availability of timber products was more
than enough to satisfy demand with the resultant pressure on prices and margins.
The third quarter at Lathams Ltd was poor but trading picked up again in the
fourth quarter.

Nevill Long Ltd, the ceiling, drylining and partitioning distributor, had an
excellent year.  Prices of a number of the company's main product lines
increased substantially and remained at the higher level.  Sales were 20% higher
than the previous year and, combined with an improved gross margin, resulted in
a record profit of £1,990,000.

Nevill Long's profits had been volatile in the past relying on a narrow customer
range and synergy with the rest of the James Latham Group was negligible.  The
opportunity was taken to sell the company on 31 March 2006 realising a profit of
£6,229,000.

During the year and since the year end substantial additional contributions have
been paid into the pension scheme and by this time next year the funding
situation should be much more healthy.

After the sales of the Clapton site and Nevill Long Ltd and with the pension
scheme better funded, James Latham plc is in a strong financial position.  The
directors intend to develop Lathams Ltd's core business of timber products
distribution as and when opportunities arise.

Current financial year 2006/07

April and May taken together have achieved a satisfactory level of trading.  The
indications are that June will follow suit.

Availability and replacement prices are hardening for a number of the products
we sell.  This normally has a beneficial affect on sales and margins.


Roger Latham
Chairman
28.06.06



JAMES LATHAM PLC
CONSOLIDATED BALANCE SHEET
As at 31 March 2006

                                                            As at 31 March 2006      As at 31 March 2005
                                                                                           (as restated)
                                                                           £000                     £000

Fixed assets

Intangible fixed assets                                                     362                      740
Tangible fixed assets                                                    11,438                   11,823
                                                                         11,800                   12,563
Current assets

Stocks - goods for resale                                                13,746                   18,645
Debtors: amounts falling due within one year                             32,073                   29,001
Debtors: amounts falling due after more than one year                     5,919                    7,753
Cash at bank and in hand                                                  1,399                      148
                                                                         53,137                   55,547
Creditors: amounts falling due within one year                          (17,623)                 (21,628)
Net current assets                                                       35,514                   33,919

Total assets less current liabilities                                    47,314                   46,482

Creditors: amounts falling due after more than one year                  (2,208)                  (4,497)

Provisions for liabilities and charges

Deferred taxation                                                             -                     (62)
Other provisions                                                           (277)                    (339)
Net assets excluding pension liability                                   44,829                   41,584

Net pension liability                                                    (4,927)                  (8,832)
Total net assets                                                         39,902                   32,752

Represented by:
Capital and reserves

Called up share capital                                                   5,040                    5,040
Less investment in own shares                                              (244)                    (300)
Capital reserve                                                               3                        3
Revaluation reserve                                                         758                      758
Profit and loss account                                                  34,345                   27,251
Equity shareholders' funds                                               39,902                   32,752




JAMES LATHAM PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 March 2006

                                                          Year to 31 March 2006    Year to 31 March 2005
                                                                                           (as restated)
                                                                           £000                     £000
Turnover

Continuing operations                                                    90,650                   88,077
Discontinuing operations                                                 24,217                   20,163
                                                                        114,867                  108,240
Cost of sales (including warehouse costs)                               (94,937)                 (89,811)
Gross profit                                                             19,930                   18,429

Selling and distribution costs                                           (9,272)                  (8,322)
Administrative expenses                                                  (5,876)                  (6,141)
Other operating income                                                      202                      182
                                                                        (14,946)                 (14,281)
Operating profit

Continuing operations                                                     3,435                    3,726
Discontinued operations                                                   1,549                      422
                                                                          4,984                    4,148
Profit on disposal of subsidiary                                          6,229                        -
(Loss) profit on disposal of fixed assets                                    (8)                   17,806
Net interest receivable (payable)                                           439                    (360)
Profit on ordinary activities before taxation                            11,644                   21,594
Tax on profit on ordinary activities                                     (1,916)                  (4,282)
Profit on ordinary activities after taxation                              9,728                   17,312
                                                                   
Dividends paid - ordinary                                                (2,449)                  (2,426)
Retained profit                                                           7,279                   14,886

Earnings per ordinary share (basic)                                        48.3p                    85.7p
Earnings per ordinary share (diluted)                                      48.3p                    85.7p




JAMES LATHAM PLC
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 March 2006

                                                                 Year to 31 March 2006    Year to 31 March 2005
                                                                                                  (as restated)
                                                                                  £000                     £000

Cash flow from operating activities                                              1,545                    (336)

Returns on investments and servicing of finance
Interest received and similar income                                             1,488                      493
Interest paid                                                                    (380)                    (311)
Preference dividend paid                                                          (79)                     (79)
Net cash inflow from returns on investments and                                  1,029                      103
servicing of finance
Taxation                                                                       (2,345)                  (2,020)

Capital expenditure

Purchase of tangible fixed assets                                                (417)                  (1,235)
Purchase of intangible fixed assets                                                  -                    (395)
Proceeds of sale of tangible fixed assets and property                           4,809                    6,613
Net cash flow from capital expenditure                                           4,392                    4,983
Equity dividends paid                                                          (2,449)                  (2,416)

Cash outflow before financing                                                    2,172                      314
Financing

Bank loans repaid during the period                                              (714)                    (714)

Bank loans obtained during the year                                                  -                    1,500

Finance leases repaid during the period                                           (25)                     (26)

Purchase of own shares                                                            (36)                    (312)

Proceeds of sale of own shares                                                      92                      211

Net cash (outflow) inflow from financing                                         (683)                      659

Increase in cash for the year                                                    1,489                      973


                                                                   Year to 31 March 2006    Year to 31 March 2005
                                                                                                    (as restated)
                                                                                    £000                     £000

Increase in cash for the year                                                      1,489                      973

Finance leases acquired during the period                                              -                     (66)

Cash outflow (inflow) from decrease in debt and lease                                683                    (760)
financing

Movement in net debt for the year                                                  2,172                      147

Net debt at 1 April 2005 (restated)                                              (5,059)                  (5,206)

Net debt at 31 March 2006                                                        (2,887)                  (5,059)




JAMES LATHAM PLC
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the year ended 31 March 2006

                                                                   Year to 31 March 2006    Year to 31 March 2005
                                                                                                    (as restated)
                                                                                    £000                     £000

Profit for the period                                                              9,728                   17,312

Actual return less expected return on pension scheme assets                        3,950                      439
Experience gains and losses arising from pension scheme                            1,028                       75
liabilities
Changes in assumptions underlying the present value of                           (5,242)                    (676)
pension scheme liabilities
Movement in deferred tax relating to actuarial loss on                                79                       48
pension scheme
Total recognised gains and losses relating to the period                           9,543                   17,198
Prior year adjustment

- FRS17 'Retirement benefits'                                                    (9,720)                        -

Total gains and losses recognised since the last annual                            (177)                   17,198
report



RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
For the year ended 31 March 2006

                                                                   Year to 31 March 2006    Year to 31 March 2005
                                                                                                    (as restated)
                                                                                    £000                     £000
Profit attributable to shareholders                                                9,728                   17,312
Dividends                                                                        (2,449)                  (2,426)

                                                                                   7,279                   14,886

Other recognised gains and losses relating to the period                           (185)                    (114)

Change in investment in own shares                                                    56                     (95)

Movement in the period                                                             7,150                   14,677

Opening shareholders' funds - as previously stated                                42,723                   27,927

Change in accounting policies:

FRS17 - recognition of pension liability net of SSAP24                           (9,720)                  (9,495)
adjustment

FRS21 - accounting for dividends on 'paid' basis                                     736                      630

FRS25 - reclassification of preference shares as a                                 (987)                    (987)
liability

Opening shareholders' funds - restated                                            32,752                   18,075

Closing shareholders' funds                                                       39,902                   32,752



JAMES LATHAM PLC
NOTES TO THE FINANCIAL STATEMENT

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 2005 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 2006. 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, free
of charge and for at least one month following this announcement.

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 19,963,196 (2005: 20,107,660).  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
19,993,034 (2005: 20,107,660).

4.       The directors recommend payment of a final dividend of 4.4p per
ordinary share (2005: 3.7p).

5.       The taxation charge for the year looks low as a percentage of pre-tax
profit at 16.5% (2005: 19.8%).  This is because the company has taken advantage
of substantial shareholding exemption on the disposal of Nevill Long Limited,
and no taxation will arise on the sale.

6.       The accounts have been prepared using new accounting standards as
detailed below:

a)                   FRS17 'Retirement benefits':  This requires that the group
pension liability be recognised in the financial statements.

b)                   FRS21 'Events after the balance sheet date': This requires
that paid dividends are not accrued for in the accounts, but are recognised upon
payment.  Final dividends at 31 March are therefore not included as liabilities
in the balance sheet.

c)                   FRS25 'Financial instruments': This requires that
preference shares are disclosed as part of creditors: amounts falling due after
more than one year, rather than as share capital.



All comparative figures have been restated to reflect these standards.

The effect of adopting these accounting standards have been as follows:

                                                                   Year to 31 March 2006    Year to 31 March 2005
                                                                                                    (as restated)
Profit and loss account

                                                                                    £000                     £000
Profit before adoption of new accounting standards                                 5,092                   14,891

Decrease in pension costs                                                          4,745                      551

Increase in interest payable                                                       (567)                    (710)

Change in deferred taxation                                                      (1,253)                       48

Accounting for dividends on a 'declared' basis                                     (738)                      106

Restated profit after adoption of new accounting standards                         7,279                   14,886



Statement of total recognised gains and losses

Recognition of change in pension liability during the                              (185)                    (114)
period

Recognition of pension fund liability at 1 April 2005                           (10,100)                        -
including SSAP24 adjustment

Change in other gains and losses after adopting new                             (10,285)                    (114)
accounting standards



Balance sheet

Net assets before adopting new standards                                          45,817                   42,723

Recognition of pension liability, including SSAP24                               (6,195)                 (10,100)
adjustment

Deferred tax on SSAP24 adjustment                                                    380                      380

Accounting for dividends on a 'declared' basis                                       887                      736

Preference shares disclosed as a liability                                         (987)                    (987)

Net assets as restated                                                            39,902                   32,752



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, Herts, HP2 7QU.




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