A surge in sales has fuelled a near 20% hike in profits at timber importer and merchant James Latham plc.
The Clapton-based business saw its pre-tax profits for the six months to the end of September rise to £1.48m on the back of sales ahead 7.7% to £42.1m.
Financial director David Dunmow said: ‘We have been busier than we expected. Actual sales have been significantly ahead of what was budgeted. And, because we have kept costs stable, all the margin has flowed through to the bottom line.
‘We have been attracting more customers and our existing customer base has been buying more from us.’
Mr Dunmow said that the results also benefited from proceeds from the £8m sale of James Latham Building Supplies to Grafton Group, which had been used to reduce Latham’s borrowings. This had resulted in markedly reduced interest payments during the half year.
Hardwood sales – an increasingly important element of Latham’s business – benefited from rising prices and what Latham claims is market appreciation of the quality of its hardwood.
Mr Dunmow said that sales were likely to remain strong for the remainder of the financial year across the group, resulting in year-end profits significantly ahead of last year’s £2m.
Latham is still awaiting planning permission from Hackney Council for the redevelopment of its 13-acre site in Clapton, which is reported to be worth £6m. Countryside Properties proposes to convert the land to mixed residential and commercial uses. A number of new sites are currently under consideration by Latham.
