James Latham enjoys profit rise despite supply chain issues
Timber merchants James Latham has reported a significantly improved profit for the first half of the financial year, but warned of continuing challenges in the supply chain and high costs.
The firm, which has a branch in Dudley serving the West Midlands, saw pre-tax profit rise to £34 million for the six months to September 30, compared with £6.3 million for the same period last year.
Meanwhile, revenue was £193.9 million, up 81.2 per cent on £107 million for the same period last year.
The firm said cost prices on both timber and panels have risen significantly since the start of the financial year, with average cost prices up over 25 per cent.
Global supply chain challenges have also caused difficulties in obtaining regular supplies of inventory, it added.
Chairman Nick Latham said: "The second half of 2021/22 has started with slightly weaker volumes compared with the exceptional six months to September 30 2021, and margins are returning to more normal levels.
"We have seen a reduction in prices of some commodity products but most products are seeing prices remaining firm. The challenges persist in our supply chain, with shipment delays, congestion at the ports and container prices at all time high levels. Inventory levels have remained high to ensure we can meet our customers' expectations. The issues with the supply chain could persist throughout 2022. It is difficult to predict when this may return to normal but when it does, this will significantly reduce the cost price of imported commodity products. There will be continued inflationary pressure on our overheads for the foreseeable future.
"Some of our customers are a bit quieter, which is in part due to projects being delayed due to supply issues with non-timber products but overall we remain confident that we will have a good end to our financial year despite the challenges ahead of us."
