With a history in the timber trade going back almost 250 years, the Lathams regard themselves as “a close sort of family”, according to chairman Roger Latham.

Their involvement with timber spans eight generations – with a ninth waiting in the wings – and there is no sign of them throwing in the towel.

They are proud that they still own 60% of James Latham plc and operate like a family business. “We are quite old-fashioned and some years ago there was criticism from the City and bankers that our sort of company was on the way out,” said Mr Latham. “But now it has gone full circle and people appreciate the fact we are not in it for the short term. I think the staff appreciate that too and prefer it to being owned by an investment company.”

But while the company may maintain old-fashioned values, its ability to move with the times has done much to keep shareholders happy. It retains a healthy interest in its tropical hardwood roots, and has built up a diverse customer base and embraced many other products including panels, softwoods, flooring and, almost unbelievably, LG HI-MACS natural acrylic stone.

Panel products director Chris Sutton said the solid surfaces market is worth £15m and is growing at 10% a year. The panel products division carries an ever-growing range of third-party certified materials including hardwood and softwood plywood, particleboard, door blanks, veneered MDF, MDF OSB, pinboard and hardboard. A flexible approach means Lathams can provide anything from loose sheets ex stock to full loads, delivered direct from the port of entry or from its manufacturer’s factory.

The company has also invested £300,000 in a flooring division to grow its hardwood floors business. With a range of exclusive products, backed by a team of trained specialists to help customers, the division succeeded in its aim to grow by 50% in its first year of operation.

The Lathams do get asked if they are interested in selling the business – but so far the answer has always been no. “I would be foolish to say it could never happen because clearly there is a price at which one would sell – but that price would have to be very, very high and at the moment the family is just not interested,” said Mr Latham.

“Our fathers and grandfathers were in timber and it is something we know, and there is still a reasonable living to be made out of it. “

That said, Mr Latham recognises that the timber industry does not necessarily appeal to young people.

“We don’t twist any young Latham’s arms to join, but if a school leaver wants to come in then they would be considered.”

Normally they would start, as Roger Latham and his predecessors did, in the yard. Most do the Institute of Wood Science course, plus training in product, sales and management. “We are quite into training and a lot of people in the trade have, at one stage or another, passed through Lathams.”

Originally from Lathom in Lancashire, the Lathams were landowners who went into the timber trade in Liverpool in 1757.

“In the early 19th century James Latham came down to London and set up business in the East End, close to the London docks and the heart of the furniture manufacturing industry. Then, we mainly dealt with tropical hardwoods, veneers and mouldings.

“In those days my great, great grandfather would put his Hunter watch at one end of a log then walk to the other end. If he could hear the watch ticking he wouldn’t buy the log because it was hollow!”

In 1912 the Lathams bought 20 acres of land in Clapton, on the River Lee. “The timber came into the London docks and went overside into barges and up the river to our premises.

“When I started, about 95% of all the timber we imported came by barge. Twenty years later it all came in by road as the ocean-going vessels had got much larger and couldn’t get up to the Port of London. They had to go to new ports like Tilbury instead.

“We used to distribute timber right up to Scotland. Initially it went by rail, but with the advent of a better road network after the war it was cheaper and easier to transport it by road.”

When Roger Latham joined the company 42 years ago he was the seventh of seven Lathams working at Clapton. “Being the most junior, it was difficult to find a position for me. Finally, at the age of 27, I was sent up to Yorkshire to open our first satellite depot at Ossett. I think it was the making of me.”

Geographic expansion

Shortly after the Ossett site opened in 1971, others followed at Yate near Bristol and Wigston in Leicestershire. “We were trying to get closer to our customers. Our objectives are geographic expansion, provided it makes financial sense, and to increase market share and adapt the product range to maximise our profits and give our customers what they require.”

Lathams also wants to “sweat” its assets and to increase throughput it is expanding opening hours at some sites.

During Mr Latham’s career, supply sources have changed. “Products have been evolving all the time,” he said. “When I came into the trade, 95% of everything we sold was imported – now it is 65%. There is much more MDF, chipboard and OSB produced in the UK – and the sources of supply have changed.”

In 2001 Lathams moved its headquarters from Clapton to modern warehouse premises at Hemel Hempstead, and it subsequently opened more sites, including Thurrock, Purfleet and Dudley.

Talking about expansion, Roger Latham said: “The directors have a big responsibility to the shareholders and whatever we do, we don’t want to take risks and we don’t want turnover for the sake of turnover. What we want is improved profit.”

He said the company could be interested in any area where it is currently not represented and added: “If there was an area we wanted to cover that didn’t have a suitable acquisition we would probably start from scratch. All you need is a small office, four walls and a roof to put the timber in and away you go.”

The company is a strong supporter of certified timber and all its depots have Forest Stewardship Council and Programme for the Endorsement of Forest Certification schemes chain of custody certification.

“We voluntarily want to buy legal and sustainable timber. Lathams was one of the guinea pigs for the Timber Trade Federation‘s Responsible Purchasing Policy which we back fully.

“Twenty years ago nobody in the trade thought twice about whether what they were buying was legal or not, so the NGOs have done a good job in educating us. Now I think it would be nice if the NGOs thought of putting a bit more into educating the public.”

When Roger Latham comes to retire, it will be he said, with mixed feelings. “With legislation these days my sort of job isn’t to do with timber very much any more. Thirty years ago people in my position would be buying and selling wood, but now we are dogged by red tape.”

However, he believes the prospects for timber are positive. “One would hope that the amount of timber used per capita in the UK will increase. It is a renewable resource and I believe it has a very good future.”