James Latham says revenue back to 2019 levels

James Latham said revenue fell by a fifth in the past five months but that business had improved and income in July and August was similar to the year before.

The timber and panelling supplier said revenue from commodity products had increased as added value business had become tougher. Margins improved as costs were controlled and the company remained profitable though less so than a year earlier, it said.

In a statement for its annual meeting, James Latham said its cash position was strong and that bad debts were low. Dresser Mouldings, bought in November, has been integrated and is was starting to contribute to its value timber business, it said.

Chairman Nick Latham said: "The positive trend of monthly improvements in revenues has continued, with July and August this year being very similar to last year."

The company's shares rose 3.2% to 862p at 13:08 BST.

Latham said customers in most sectors were busy and that forward pricing of commodity products was rising with extended lead times. Many customers closed after the UK government introduced restrictions to combat Covid-19 in March but construction markets have reopened.

"We are very mindful of the potential impact of Brexit and also the possibility of further spikes in Covid-19 cases causing local lock-downs and the affect that this may have on the wider economy," Latham said. "We are confident that our disaster recovery plans for these two risks will help manage any impact on the company."

The company said it would report its interim results for the six months to the end of September on 25 November.