In a statement to shareholders, James Latham plc has reported sales up 11% in the first four months of the current financial year.
The company said that its performance in the April to July period was the result of increased economic activity and higher product prices. It picked out commercial vehicle manufacture among the sectors that had shown particular improvement.
However, it warned, trading conditons are still “challenging” and margins are under pressure.
“Customers have reasonable order books for the next six months,” it said. “However, much of the work is immediate and it is difficult to predict the level of activity likely in the winter months.”
Credit insurance availability is better, it added, but bad debt is above “normal levels” and government spending cuts are now expected to impact “many areas of the economy”.
Lathams said it was controlling overheads and concentrating on areas “where opportunities exist”. It also said it had strong cash reserves and was equipped to “weather uncertain trading conditions”.
