Final Results

Latham(James) PLC
24 June 2005

James Latham plc

Announcement of Preliminary Results for the year ended 31 March 2005 and
Chairman's Statement


Results

Turnover for the year, including the new depot at Gateshead, is £108,240,000, an
11.0% increase on last year's £97,546,000.

Operating profit is £3,597,000 against £2,791,000 last year, an increase of
28.9%.

Including the profit on the disposal of the Company's Clapton site, the profit
before tax is £21,832,000 against last year's £3,029,000.  Excluding the profit
on the disposal, the pre-tax profit is £4,026,000.  This is 32.9% higher than
last year.

Profit after tax is £17,502,000 (£2,970,000 excluding the profit on the
disposal) against last year's £2,108,000.


Final Dividend

The Directors recommend a final dividend of 3.7p per Ordinary Share (2004
3.125p).  This is to be paid on 15 August 2005 to Shareholders on the register
at the close of business on 15 July 2005.  The shares will become ex-dividend on
13 July 2005.

The total dividend per Ordinary Share (including the Special Dividend of 7.5p
paid in January 2005) of 12.7p for the year is covered 6.8 times by earnings.
Excluding the Special Dividend and profit on Clapton, the total of 5.2p for the
year is covered 2.8 times by earnings.  This compares with a total dividend last
year of 4.5p which was covered 2.3 times.  Previous dividends have been
re-stated to reflect the division of Ordinary Shares from £1.00 to £0.25.


The Financial Year 2004/05

The Group has had a better year, particularly in the first half.

Lathams Ltd, the panels and timber distributor, enhanced its sales, gross margin
and net profit.  The diverse customer base was generally busy and some, albeit
temporary, price increases helped the margins.

The acquisition of the Felling branch of F H Thompson & Sons Ltd was concluded
on 31 August 2004 and from that date has traded as James Latham Gateshead.  We
expect it to contribute to Group profits in 2005/06.

Nevill Long Ltd, the ceiling, drylining and partitioning systems distributor,
produced an excellent increase in net profit.  Sales, margins and profit all
improved, and during the year they strengthened their position in the
marketplace.

The £17,806,000 profit on the sale of the Clapton premises was exceptional and
comes at an opportune time.  As previously reported, the defined benefit pension
scheme remains in deficit, and the Group's contributions will need to be
increased soon to eliminate the shortfall over a number of years.

To date, £8,500,000 of the proceeds of the disposal have been received with
further secured payments due in December 2005, 2006 and 2007.


Current Financial Year 2005/06

The outcome for 2005/06 is difficult to predict at this early stage in the
financial year.  Our sales in April and May, however, on a like for like basis,
are comfortably ahead of last year although competition is intensifying.

Some customers are uneasy that declining consumer spending could adversely
affect their business and we cannot rely on price increases in the current year
to enhance our margins.


The Board of Directors

The current Chairman, Roger Latham, on reaching retirement age on 16 December
2006, will retire on that date.

Peter Latham has been appointed Deputy Chairman as from today's date and will
succeed Roger Latham.

Pippa Latham will become a Non-Executive Director from 1 September 2005.


Roger Latham
Chairman
24.06.05


CONSOLIDATED PROFIT AND LOSS ACCOUNT JAMES LATHAM PLC
For the year ended 31 March 2005

                                                                                     2005                 2004
                                                                                    £'000s               £'000s

Turnover                                                                                  108,240               97,546

Cost of sales                                                                            (89,876)             (81,427)
Gross profit                                                                               18,364               16,119

Selling and distribution costs                                                 (8,547)              (7,701)
Administrative expenses                                                        (6,402)              (5,850)
Other operating income                                                             182                  223
                                                                                         (14,767)             (13,328)
Operating Profit                                                                            3,597                2,791

Share of operating profit of associated undertaking                                             -                    4
Profit on disposal of associated undertaking                                                    -                   18
Profit on disposal of fixed asset                                                          17,806                    -
Interest receivable and similar income                                                        764                  444
Interest payable and similar charges                                                        (335)                (228)
Profit on ordinary activities before taxation                                              21,832                3,029
Tax on profit on ordinary activities                                                      (4,330)                (921)
Profit on ordinary activities after taxation                                               17,502                2,108

Dividends (including non-equity dividends)                                                (2,611)                (875)
Retained profit                                                                            14,891                1,233

Earnings per ordinary share                                                                 86.6p                10.2p
Diluted Earnings per ordinary share                                                         86.6p                10.2p
Earnings per ordinary share excluding sale of Clapton                                       14.4p                10.2p




CONSOLIDATED BALANCE SHEET JAMES LATHAM PLC
As at 31 March 2005

                                                                                   2005                   2004

                                                                                                 (as restated: note 2)
                                                                                  £'000s                 £'000s

Fixed assets

Intangible fixed assets                                                                      740                    385
Tangible fixed assets                                                                     11,823                 12,976
                                                                                          12,563                 13,361
Current assets

Stocks - goods for resale                                                      18,645               14,668
Debtors amounts falling due within one year                                    30,269               22,249
Debtors: amounts falling due after more than one year                           7,753                    -
Cash at bank and in hand                                                          148                  590
                                                                               56,815               37,507
Creditors: amounts falling due within one year                               (22,364)             (19,867)
Net current assets                                                                        34,451                 17,640

Total assets less current liabilities                                                     47,014                 31,001
Creditors: amounts falling due after more than one year                                  (3,510)                (2,707)
Provisions for liabilities and charges

Deferred taxation                                                                          (442)                      -
Other provisions                                                                           (339)                  (367)
Total net assets                                                                          42,723                 27,927

Represented by:
Capital and reserves

Called up share capital                                                                    6,027                  6,027
Less investment in own shares                                                              (300)                  (205)
Capital reserve                                                                                3                      3
Revaluation reserve                                                                          758                    149
Profit and loss account                                                                   36,235                 21,953
Shareholders' funds                                                                       42,723                 27,927

Attributable to equity shareholders                                                       41,736                 26,940
Attributable to non-equity shareholders                                                      987                    987




CONSOLIDATED CASH FLOW STATEMENT JAMES LATHAM PLC
For the year ended 31 March 2005


                                                                                 2005                    2004
                                                                                £'000s                  £'000s



Cash flow from operating activities                                                    (336)                   1,978

Dividend received from associated undertaking                                            -                      18
Returns on investments and servicing of finance

Interest received and similar income                                        493                     444
Interest paid                                                              (311)                   (223)
Preference dividend paid                                                   (79)                    (79)
Net cash inflow from returns on investments and servicing of finance

                                                                                        103                     142
Taxation                                                                              (2,020)                  (624)

Capital expenditure and financial investment

Purchase of tangible fixed assets                                          (395)                     -
Purchase of tangible fixed assets                                         (1,301)                  (624)
Purchase of own shares                                                     (312)                   (74)
Proceeds of sale of own shares                                              211                      1
Proceeds of sale of tangible fixed assets                                  6,613                    26
Net cash flow from capital expenditure and financial investment

                                                                                       4,816                   (671)
Acquisition and disposals

Proceeds on sale of investment in associated undertaking                                 -                      392
Equity dividends paid                                                                 (2,416)                  (820)

Cash inflow before management of liquid resources and financing

                                                                                        147                     415
Financing

Bank loans repaid during year                                              (714)                   (523)

Other creditors                                                              -                     (700)

Finance lease capital obtained during the year                              66                       -

Finance lease repayments in the year                                       (26)                      -

Bank loans obtained during the year                                        1,500                     -

Net cash inflow/(outflow) from financing                                                826                   (1,223)

Increase/(decrease) in cash for the year                                                973                    (808)

Reconciliation of net cash flow to movement in net debt

Increase/(decrease) in cash for the year                                    973                    (808)

Cash (inflow)/outflow from financing                                       (826)                   1,223

Movement in net debt for the year                                                       147                     415

Net debt at 1 April 2004                                                              (4,219)                 (4,634)

Net debt at 31 March 2005                                                             (4,072)                 (4,219)





RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
For the year ended 31 March 2005


                                                                                          2005                     2004
                                                                                        £'000s                   £'000s

Profit for the financial year                                                           17,502                    2,108
Change in investment in own shares                                                        (95)                    (205)
Dividends                                                                              (2,611)                    (975)
Net addition to shareholders' funds                                                     14,796                      928

Opening shareholders' funds                                                             27,927                   26,999

Closing shareholders' funds                                                             42,723                   27,927



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 2004 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 2005. 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. The presentation of the balance sheet has been amended to take
account of the adoption of UITF38 on Share Option Schemes, and the prior year
figures have been amended.

3.      The basic earnings per share are calculated on the weighted average
number of shares in issue during the year of  20,108,000 (2004: 19,832,000). 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
20,108,000 (2004: 19,932,000).

4.      The directors recommend payment of a final dividend of 3.7p per
ordinary share (2004: 3.125p).


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