LONDON (ShareCast) - (Sharecast News) - James Latham reported higher first-half revenue but slightly lower profits on Thursday, as growth in lower-margin timber pack sales tempered margins and capital investment reduced finance income.

Revenue for the six months ended 30 September rose 5.5% to £196.8m from £186.6m a year earlier, driven by a 6.8% increase in volumes across both timber and panel products.

The AIM-traded company said a significant proportion of the volume growth came from the expansion of its LDT timber pack sales business.

Cost prices remained stable during the period.

Gross profit margin slipped to 16.2% from 16.3%, reflecting the higher contribution from the LDT business, which supplies directly to customers at lower margins with limited associated overheads.

Operating profit edged down to £11.1m from £11.3m, while profit before tax declined to £12.8m compared with £13.6m last year.

Earnings per share were 47.9p, down from 50.5p.

Finance income fell to £1.9m from £2.5m due to increased capital expenditure, including £8m invested in the first half, most of which related to the company's new National Distribution Centre.

Cash and cash equivalents decreased to £59.8m from £67.5m a year ago.

Net assets rose to £225.2m from £213.8m, reflecting higher inventory and receivables aligned with increased trading volumes.

The pension scheme surplus stood at £13.8m, down from £15.1m.

James Latham's board declared an interim dividend of 8.1p per share, up from 7.95p, payable on 23 January 2026 to shareholders on the register on 5 January.

Trading at the start of the second half remained in line with the first six months, with stable volumes and margins.

The firm noted continued nervousness in the market, particularly in the DIY, housebuilding and wider construction sectors, though customers' order books remain "reasonable".

Construction of the National Distribution Centre in Chatteris was underway and on schedule, with completion expected by the end of 2026 and full trading from the site by late 2027.

James Latham said recent additions to the senior management team, including an operations director and a business development director, would support the centre's development.

At 0933 GMT, shares in James Latham were down 3.85% at 985.56p.

Reporting by Josh White for Sharecast.com.

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