Two new depots – one in Hemel Hempstead and one in Dudley – will be opened by James Latham plc next month.
And the company is still actively seeking suitable premises to relocate its Clapton site in London which is being sold for development.
The announcements were made by group chairman Roger Latham as the firm’s financial results were published on the stock exchange.
The new depots, opening in July, will cost a ‘significant’ sum and enable the timber importer and merchant to service customers more efficiently and improve its ability to attract new business in those areas.
Dudley will sell Latham’s full range while Hemel Hempstead will focus on panel products.
Mr Latham said: ‘The cost of relocation and establishing these new depots will arise before we receive the proceeds of sale for the Clapton site. This will have an adverse impact on our profits in the current year.’
Pre-tax profits of £3.026m were reported for the year ending March 31, against £5.11m last year. However, last year’s figure included £3.031m from the sale of Latham Timber & Building Supplies.
Trading has therefore improved with better margins and controlled overheads. Timber departments produced ‘excellent’ results with prices remaining firm and overall the group is in a strong financial position for further growth.
The panel products division reported ‘reasonable’ results under ‘difficult circumstances’. Over-production led to weak prices and severe competition.
Mr Latham added: ‘Demand for our products continues to be buoyant and the downturn in trade in other parts of the world does not yet appear to have had much of an impact on our market. Sales in April and May are ahead of the same months last year.’
