JA M E S L AT H A M P LC
ANNUAL REPORT & ACCOUNTS 2024
Summary and Highlights
1
Financial Highlights and Calendar
2
Chairman’s Statement
Strategic Report
4
Outline of the Strategic Report
4
Section 172 Statement
6
James Latham plc and Our Objectives and Strategy
8
Corporate Responsibility including Non-Financial
and Sustainability Information
24
Principal Risks and Uncertainties
28
Key Performance Indicators
29
Operating Review
31
Financial Review
Corporate Governance
35
Corporate Governance Report
39
Directors and Advisors
40
Directors’ Remuneration Report
44
Directors’ Report
47
Statement of Directors’ Responsibilities
Financial Statements
48
Independent Auditor’s Report
53
Consolidated Income Statement
53
Consolidated Statement of Comprehensive Income
54
Consolidated and Company Balance Sheet
55
Consolidated Statement of Changes in Equity
56
Company Statement of Changes in Equity
57
Consolidated and Company Cash Flow Statement
58
Notes forming part of the Group Accounts
96
Notice of the Annual General Meeting
101
The Latham Group
Contents
Record date for final dividend 2024
2 August 2024
Annual General Meeting 2024
21 August 2024
Payment of final dividend
23 August 2024
Interim 2024/25 results announcement
28 November 2024
Interim dividend expected payment date
24 January 2025
Preliminary announcement of 2024/25 results
26 June 2025
Annual General Meeting 2025
20 August 2025
Financial Calendar
for the year ended 31 March 2024
Net profit attributable to
shareholders
Down 36.9%
£22.7m
Equity Shareholders Funds
Up 10.0%
£215.2m
Cash and Cash Equivalents
Up 21.2%
£75.9m
Financial Highlights
Revenue
£366.5m
2020 up 5.1%
Earnings per share
(see Note 9)
112.7p
2020 no change
2020
Total Dividend
per share
78.75p
2021 up 1.3%
2021 up 19.5%
2021
2022 up 54.0%
2022 up 204.1%
2022
2023 up 6.0%
2023 down 21.7%
0
50
100
250
63.1
150
75.4
200
229.3
179.5
2023
Financial Highlights and Calendar
JAMES LATHAM PLC ANNUAL REPORT 2024
1
2024 down 10.2%
350
150
200
250
300
247.1
400
250.2
385.4
408.4
450
366.5
2024 down 37.2%
112.7
2024
Dividend
Special dividend
10
20
30
40
50
60
70
80
8
45
25.5
28.05
8
33.75
21.2
15.5
Global supply chains have been much easier this year,
but we have seen how the position can quickly change
with the impact that the shipping attacks in the Red Sea
have had on container rates. The impact of inflation and
higher interest rates has continued to be challenging
with negative consumer confidence levels for much of
the year affecting outputs in some of our key sectors.
Construction has had a challenging year, and although
this does not directly affect us, many of our larger
manufacturing customers supply product into this
sector. The strength of our results are testament to the
depth and breadth of our customer base and the diverse
market sectors within which we operate.
Revenue for the financial year to 31 March 2024 was
£366.5m, down 10.2% on last year’s £408.4m. Like for
like volumes taking into account working days and
acquisitions, decreased by just 0.2%, with growth of 2.7%
on delivered business from our own warehouses. The cost
price of our products is on average 3.4% lower (2023: 6.5%
higher) than at the start of the financial year. This year
has seen a change in our product mix, with customers
moving to cheaper cost effective products. Whilst we
have gained market share in these products, the lower
price per tonne has resulted in reduced revenues.
Gross profit percentage for the financial year to
31 March 2024 was 16.9% compared with 19.6% in the
previous financial year, with product mix and a more
competitive environment resulting in margins reducing
slightly below our long term average. Despite inflation
remaining high, overheads have been well controlled
and are little changed from the previous year.
Profit before tax is £30.3m, compared with last year’s
£44.5m. Profit after tax for the year is £22.7m compared
with last year’s £35.9m. Earnings per ordinary share is
112.7p compared with last year’s 179.5p. These figures
should be viewed in the context of the exceptional profits
achieved over the previous two financial years.
As at 31 March 2024 net assets have increased to
£215.2m (2023: £195.6m). Inventory levels have reduced to
£61.7m from £67.5m last year due to the normalisation
of supply chains and the product mix resulting in more
lower value products. Current trade and other receivables
at the year end were £2.0m lower than the previous year
with our measure of debtors days down slightly on the
previous year. Despite the challenges of the economic
environment, bad debts have remained low at 0.11%
(2023: 0.06%) of revenues. Cash and cash equivalents of
£75.9m (2023: £62.6m) remain strong with good cash
flows from operating activities.
Final dividend
The Board has declared a final dividend of 26.0p per
Ordinary Share (2023: 20.8p). The total dividend per
ordinary share of 33.75p for the year (2023: 28.05p) is
covered 3.3 times by earnings (2023: 6.4 times).
The previous two financial years have provided the
group with exceptional profits and have allowed our
cash balances to increase. The Board has declared two
special dividends of 8.0p in each of the previous two
financial years to reflect these profit levels. Following a
return to more normal market conditions, the Board has
reviewed our current cash position and, considering
future investment plans and maintaining our flexibility
to react to opportunities as they arise, has decided to
declare a further special dividend of 45p per share.
Both the final and special dividend are payable on
23 August 2024 to ordinary shareholders on the
Company’s register at close of business on 2 August 2024.
The ex-dividend date will be 1 August 2024.
Current and future trading
Current trading is consistent with the second half of the
financial year to 31 March 2024, with very similar volumes
and margins. The majority of our customers have improved
order books and are feeling more positive than this time
last year. However certain sectors, such as the merchant
sector, are still finding the market place challenging.
We are seeing significant container freight rate increases
at the moment which will increase our cost prices.
This affects about 25 % of our products and we expect
that the market price of these products will increase to
compensate for this.
The cost prices from the majority of our manufacturers,
excluding freight, are relatively stable, and we do not
expect any changes in the short term. Demand for
panel products is slowly increasing. Demand for timber
however has been more challenging, but we are
expecting volumes to increase as the year progresses.
Chairman’s Statement
I am very pleased to report good trading results for the financial
year to 31 March 2024. The financial year to 31 March 2024 was a year
where normal market conditions returned following three years of
unprecedented challenges and opportunities, which had provided
the group with exceptional profits. Product values reduced at a faster
rate and earlier in the financial year than we had predicted. The lack
of demand for our type of products in Continental Europe led to UK
manufacturers having to react to price weakness from European
manufacturers, who were looking to sell more product in the UK.
JAMES LATHAM PLC ANNUAL REPORT 2024
2
Chairman’s Statement
JAMES LATHAM PLC ANNUAL REPORT 2024
3
We continue to see increased volumes in lower value
products, but as overall demand and confidence picks
up, combined with the work that we are doing in the
specification sector then we expect our product mix
will improve.
We are very mindful of the uncertainties created by
the current geopolitical instability and the upcoming
UK general election, but the macro-economic climate
seems to be gradually improving, and the market place
within which we operate is feeling more confident.
The group continues to demonstrate its ability to deliver
strong results despite all the challenges that we face,
and we believe that this will continue.
Development strategy
The directors remain focused on developing the
business, and believe that the recent strong results
demonstrate that the strategy is working well.
We will continue to invest in our current warehouse
facilities including building a new storage shed at
our Thurrock facility to enable them to stock more
commodity products, and adding new racking to both
our Scotland and Hemel Hempstead warehouses to
allow them to further develop their product range.
We are committed to relocating the Belfast site
(formerly branded as IJK Timber) to a modern style
facility enabling them to stock our full range of products,
but it is taking longer than expected to find a suitable
site for development.
We have now purchased our Dublin site (formerly
branded Abbey Woods), and with some investment will
give us approximately 15 % more space to allow us to
increase the range and depth of our stock to support
our customers requirements.
The board continue to look for acquisitions that either
help develop sales in specific market sectors, enable
the business to sell a wider product range, or any
geographical opportunities that arise.
The board have been conducting a full review of the
storage and routes that our products take before
reaching our customers with a view to increasing
both the efficiency of our operations and the range of
products that we can hold. This project has identified a
number of options that need to be further investigated
over the coming months, including introducing
warehouse management IT systems. The board will
ensure that sufficient resources are allocated to these
projects to invest in our business for the long term
benefit of the group.
Directors and staff
Trevor Barnard retired as Purfleet site director in
March 2024 having worked for James Latham for 45
years. Trevor was the third generation of the Barnard
family who have collectively worked in our business for
nearly 150 years. I would like to record my enormous
gratitude to Trevor and the whole Barnard family for
their commitment to our business over so many years.
I would also like to thank Phil Roche who is due to retire
at the end of October 2024, after 34 years service at the
Dublin site. He oversaw the smooth integration of Abbey
Woods into the James Latham business and has been
instrumental in promoting our Accoya product into the
Irish market.
I would also like to extend a warm welcome to Sarah
Mawdsley, Mat Lewis and Alan Wiseman, who have all
recently joined the business to become site directors at
our Hemel Hempstead, Purfleet and Dublin sites.
I would like to thank the IT team, headed up by Sophie
Trabucchi, who successfully and seamlessly upgraded
our computer system to a new ERP system giving us
the potential to introduce new technologies. Updating a
computer system at the same time across all of the UK
depots was a huge undertaking, but all the preparation
and hours of testing, helped by all of the depots, meant
that this was a smoother transition that anyone could
have expected.
In terms of corporate structure, there is a clear division
of responsibilities between the main board which
determines strategy and exercises corporate governance
and the trading board of Lathams Limited, chaired by
Andrew Wright, which sets and monitors trading and
operating policy. Both boards are well balanced in terms
of experience and skills.
Finally I would like to thank all the directors and
everyone within our group, as the results this year are
very pleasing and could not have been achieved without
the dedication and commitment of all of our staff at
James Latham.
I strongly believe that the great results that we have
achieved over the past few years demonstrate the
great team spirit and communication that we have in
our business today, and will stand us in good stead in
the future.
Nick Latham,
Chairman, James Latham plc
8 July 2024
Outline of the Strategic Report
The directors present their Strategic Report for the
year ended 31 March 2024. Included within these
sections are the four Principles for delivering growth
as contained within the Quoted Companies Alliance
Corporate Governance Code 2018, demonstrating
how we comply with these principles.
Page
6
James Latham plc and Our Objectives
and Strategy
8
Corporate Responsibility including
Non-Financial and Sustainability Information
Statement
24
Principal Risks and Uncertainties
28
Key Performance Indicators
29
Operating Review
31
Financial Review
The Strategic Report was approved by the board of
directors on 8 July 2024 and signed on its behalf by:
Nick Latham
David Dunmow
Section 172 Statement
The Strategic Report contains information on how
the directors have had regard to the matters set out
in Section 172 (1) (a) to (f) of the Companies Act 2006
when performing their duties under section 172.
The long term success of our business has always
depended on maintaining mutually beneficial
arrangements with all our key stakeholders, and having
shared goals. The group ensures that these shared
goals are communicated throughout the business,
both at group and local board level, as well as with the
stakeholders themselves. Details of how we interact
with our key stakeholders are discussed further in
the Strategic Report. Our key stakeholders are:-
l Shareholders. As owners of the Group, we rely on the
support and views of our shareholders. Members of
the board have regular dialogue with shareholders
in order to develop an understanding of their views.
Shareholder feedback is regularly reported on and
discussed by the board and their views are considered
as part of the decision making process. The AGM is
an important forum for shareholders to meet the
board and ask any questions they may have. Further
information is shown on pages 8 and 38.
l Employees. All of our employees throughout the
business are key to our success, and we need to
reward, protect and listen at all levels. We engage
with our employees through the Company Intranet,
local board meetings, performance reviews and
briefings from various parts of the business. We
have undertaken employee surveys which we use to
present ideas to the board, representing the views of
all our staff. We provide share schemes to encourage
employees to share in the success of the group.
Further information is shown on page 22.
l Customers and Suppliers. Building long term
relationships with our customers and suppliers is
mutually beneficial for our shared success. Key to this
is availability of inventories, service levels and expertise
of our staff, to be able to provide the best products
and best solutions to our customers, which cannot
be done without the support of our suppliers. Further
information is found on page 6.
l Environment and Local Communities. As a provider
of natural materials, our impact and interaction with
the environment and our local communities is key to
our long term success. We support national and local
charities with donations and encourage employees to
undertake fundraising activities. Further information
is found on pages 8 to 22.
Introduction
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
4
Decisions are made with a long term view in mind
and having regard to all our stakeholders. These
decisions are made in line with group policies, but local
management are empowered to make decisions up to
set levels of cost to ensure that stakeholders for their
business units are properly considered. Where possible,
decisions are explained and discussed with affected
stakeholders before any actions are implemented.
The key decisions taken by the board in the year
to 31 March 2024, which have an impact upon our
stakeholders, include:
a. Directing and reviewing the further detailed work
on the full review of our supply chain and route to
market. This is a major long term project that will
start to be implemented over the next few years and
is necessary to future proof our business and increase
efficiency in inventory levels and throughput.
b. Approval of the implementation of a new ERP
computer system across all the group, and approval
of the budget to introduce a new Warehouse
Management IT system, to be launched in 2025.
c. Approval of the purchase of the whole of the long
leasehold at our Dublin branch to extend the
warehouse and provide more capacity necessary for
the future profits from this site.
d. Agreeing a new investment strategy with the
Trustees of the James Latham Pension and Assurance
Scheme, following the triennial valuation, to
accelerate the derisking of the scheme’s investments.
e. Approval of a project to improve and expand our
ESG strategy, starting with the TCFD reporting,
included on pages 10 to 19, culminating in our path
to net zero.
f. Approval of annual budget and three year plans.
This year’s budget and rolling three year plan were
approved following a review of the budgets produced
by the individual profit centres to ensure that this
met our strategic priorities and considered the risks.
We considered whether these plans adequately
met the demands of our customers both in terms
of service and in environmental concerns. We also
considered the health and safety implications of these
plans, as well as taking on board ideas put forward by
employees.
g. Approval of the final dividend. We considered all the
stakeholders in setting the dividend levels, including
meeting shareholder expectations, maintaining a
sufficient cash reserve for future investment and
ensuring that there are sufficient reserves to meet our
obligations to our pensioners.
Honext Board installed at The Fitzwilliam Museum in the University of Cambridge.
Introduction
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
5
Strategy for Developing the Business
The directors recognise that the strength of the group
is as a distributor of high quality timber and associated
products, purchased using the TDUK Responsible
Purchasing Policy from legal and sustainable sources of
supply, to meet existing and new customer demands
on product and service.
Working with existing and potentially new suppliers,
we identify products to add to our extensive range. This
can include non timber products where they fit into
the requirements of our customer base. Our aim is to
provide a true one stop shop to our key target markets.
Objectives
James Latham plc sets out to be the supplier of choice
throughout the UK and Ireland for joinery, door and
kitchen manufacturers, commercial interior fitout and
many other market sectors, offering a wide range of
wood based panel products, natural acrylic stone, door
blanks, hardwoods, high grade softwoods, modified
and engineered timbers, decking and mouldings and
other machined products. We also supply commodity
and specialist panel products to timber and builders’
merchants.
Environmental interests in, and concerns about, the
growth and harvest of timber are key drivers of company
policy, with the company aiming to increase each year,
the amount of legal and sustainable product supplied
into its marketplace. The UK is committed to becoming
net-zero carbon by 2050 and the company is providing
embodied carbon information to our customers to
demonstrate the carbon story of our products.
The company believes that to provide the service
demanded, we need to be close to our customers.
We offer national coverage from twelve locations in
the UK and two locations in the Republic of Ireland, as
shown in The Latham Group map on page 101, as well as
from various port and storage locations around the UK.
Our timber processing facility at Dresser Mouldings
supplies both the depots and customers directly.
Having stock of product in the right place at the right
time is important to provide this service. Commodity
imports are held in ports including Tilbury, Liverpool
and Grangemouth. This stock can be delivered directly
to customers for multi-pack orders, or transferred to
the depots for onward delivery. Around London we
stock Panel Products and Timber Products in separate
warehouses whereas a full range of products are held
in our other locations around the United Kingdom.
We also hold a range of specialist products in Leeds for
distribution to the UK and Irish markets to complement
the business supplied directly by our depots.
The company is well respected in its industry and
amongst its customers and suppliers for its principled
trading policies and its integrity.
The company’s objectives are:
l To maximise shareholder value over the
medium term;
l To be the supplier of choice for our customers
by understanding and meeting their needs and
providing them with the right material at the
right time;
l To maintain its presence in timber based
products but to expand the product range to
the existing customer base from an extended
distribution network;
l To increase sales of third party certified legal
and sustainable timber products and drive
Environmental, Social and Governance (ESG)
policies within our company and industry;
l To provide a safe working environment for
our staff;
l To improve service levels by improving
warehouse facilities to speed order picking over
an extended product range; and
l To employ and develop well-trained,
knowledgeable and helpful staff.
Principle 1 – Establish a strategy and business model which promote long term
value for shareholders.
DELIVER GROWTH
James Latham plc and Our Objectives and Strategy
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
6
Our strategy for developing the business is two fold.
Firstly to ensure that we maintain and improve our
volumes of commodity products, including MDF,
OSB, Plywood, North American Hardwoods, European
Hardwoods and African Hardwoods. Secondly, alongside
the commodity products we sell an increasing
amount of speciality products, including Door Blanks,
Melamines, Laminates and other decorative panels,
Accoya, Woodex® and Decking. The Dresser Mouldings
facility allows us to further develop our offering of
processed timbers. Full ranges of the specialist products
are stocked and key to our success is having the right
stock in the right place at the right time.
Melamine, decorative laminates and edging products
are important product groups and all Latham depots
offer a comprehensive range of products ex-stock,
including decors from Egger, Kronospan and CLEAF.
Sales of technical engineered and modified timber
are a key part of our strategic sales development for
timber. An enhanced range of products are stocked,
including Accoya, WoodEx®, Decking and machined
and coated timbers.
Our Leeds depot acts as the central distribution point
for ATP, HI-Macs®, Kydex®, Laminates and Valchromat.
These are all available on a national basis for prompt
delivery to our customer base. We have and will
continue to enhance our delivery service and will
continue to develop our centrally held stocks. Overnight
trunking of goods between the depots enables us to
provide an increased range of stocks available for next
day delivery.
All depots have a three year rolling business plan to
ensure that they monitor opportunities and threats
throughout the year and review their practices to
continually improve service levels to our customers.
These plans drive our investment in our facilities as we
adapt our product ranges and service levels to meet
customer demands, which includes operating 24 hours
a day, 5 days a week.
We will continue to look to develop new markets,
both organically through our depot network, or by
acquisition where the opportunity arises.
Our staff are a major asset for the company, and we
continue to invest in training to ensure that we have
the best operations, sales, technical and financial teams
in the industry. Marketing of our products is done
through brochures, direct advertising, public relations,
social media and exhibitions and we use multiple
channels to communicate clearly with our existing
and potential customers, fully complying with our
responsibilities under the Data Protection Act.
Our specification website promotes our product
offering to professional specifiers, architects and
designers. We also put in place a programme of
presentations to architects for their Continual
Professional Development.
Digital media has provided the company with the
opportunity to increase brand awareness across a wide
range of social media platforms including a series of
short videos available on the www.lathamtimber.co.uk
website. Our central sampling service in Leicester
provides an efficient service with full visibility to follow
up the sales leads that this produces.
We value the personal relationships developed with
our suppliers, staff and customers. Working with our
staff and suppliers we aim to offer our existing and
potential customer base a first class service of fit for
purpose, legal and sustainable products, delivered in
a timely manner.
The challenges in achieving our strategic objectives are
considered within the Principal Risks and Uncertainties
on pages 24 to 27.
Intricate herringbone marquetry by Benjamin Scott at
Rycotewood Furniture College.
James Latham plc and Our Objectives and Strategy
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
7
At James Latham plc, we are conscious of our corporate
responsibilities to all our stakeholders and to society as
a whole. Environmental matters, health and safety, staff
training and equal opportunities are key areas relevant
to the group’s business. We also maintain contact with
and support both the local and the wider community.
A substantial amount of management time is devoted
to Environmental, Social and Governance (ESG) issues,
especially around the Carbon Story, as we believe
that these enhance our standing with customers and
suppliers to the benefit of all stakeholders.
Environmental
The directors of James Latham plc recognise that the
company has a responsibility to the environment,
customers, suppliers, shareholders and staff to base
its commercial activities on well-managed forests and
to reduce any negative environmental or social impact
of its trading as far as is reasonably practical.
ESG matters are of increasing importance with our
stakeholders, and in due course, as the broader
company ESG strategy develops, we will seek
to incorporate performance measures into the
implementation of the policy which support this.
The UK Government is committed to becoming
net-zero carbon by 2050. The legislation intends to
dramatically reduce Greenhouse Gas Emissions and
any remaining emissions are offset, neutralising
environmental impact and slowing climate change.
One of the routes to achieving this, is by reducing
carbon emissions in the build environment.
Principle 3 – Take into account wider stakeholder and social responsibilities and
their implication for long-term success.
Timber is one of the only renewable resources used
in construction unlike steel and concrete which
cannot claim this as only a finite source is available.
Due to construction being responsible for 25% of the
UK’s total carbon footprint, construction companies
need to look at the choice of materials and construction
methods used, as well as the energy efficiency EPC
ratings of the buildings.
Sourcing wood from sustainably managed forests
maximises CO2 absorption and stores more carbon.
In addition, sustainably managed forests increase
biodiversity and increases forestation. Forest stewards
manage the landscape to prevent damage to the
eco-systems, water courses, wildlife and the trees
themselves. This system takes a long term view of
the forest resource to ensure that they will last for
generations to come.
To support this, we ensure our timber is legally
harvested and comes from well managed forests.
We recognise that the independent certification of
forests and supply chains is the best means of
providing assurances of this. As well as providing
assurances on the timber itself, these schemes also
provide checks on the welfare of the forest workers
and indigenous population.
The Timber and Timber Products (Placing on the
Market) Regulations (“UKTR”) places an obligation
on the first placer of timber on the British market
to ensure that the timber has been legally sourced
and traded. Compliance requires operation of a due
diligence system, assessing risks and implanting
mitigation measures to ensure that only negligible
Principle 2 – Seek to understand and meet shareholder needs and expectations.
Nick Latham and David Dunmow are responsible for
maintaining good communications with shareholders.
This includes our published financial statements and
Stock Exchange announcements, which are also posted
on to our Investors website, www.lathamtimber.co.uk.
We allocate at least two days a year for Investor
Roadshows organised by our broker, SP Angel, where
investors have the opportunity to discuss our strategy
and their own expectations. In addition we occasionally
host shareholder visits to our depots with a guided
tour of the facilities to increase their understanding
of our business. Shareholder feedback and significant
movements in our shareholder base are regularly
discussed at board level, and their views are considered
as part of our decision making processes.
Corporate Responsibility
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
8
status product can enter the supply chain. In 2023,
an Office of Product and Safety Standards audit
of our due diligence systems found that we were
fully compliant with the European Union Timber
Regulation No 995/2021. In 2022 we were audited by the
Department of Agriculture, Food and the Marine in the
Republic of Ireland responsible for legal sourcing and
recently passed the audit of our site in Dublin.
For a number of years we have had risk assessment
tools in place to monitor suppliers through the TDUK
Responsible Purchasing Policy and Code of Conduct.
The risk assessment seeks to provide the clearest
practicable information regarding the sources of raw
material used in the manufacture of wood products.
We publish our commitment to the environment
regularly in literature and on our website,
www.lathamtimber.co.uk. We give clear guidance
to our customers about the importance of buying
timber that can be demonstrated to be legal and
from well-managed forests. This is a condition of
contract to supply the UK Government and many
environmentally aware customers.
The Carbon Story
Timber performs fantastically when compared
to Carbon Dioxide (CO2) intensive materials such
as concrete or steel which release CO2 into the
atmosphere during production. Conversely, timber
produces no CO2 during its growth, instead removing
carbon from the air and locking it away for its lifetime.
The UK Government’s Timber in Construction roadmap
illustrates their recognition of this and the policy of
increasing the use of timber in construction.
Our compliance team continue to work with the
Biocomposites Centre at the University of Bangor to
refine our unique calculator that measures not only
the carbon locking potential of our products, but also
the carbon footprint created by their production,
transport and storage at our facilities. Not only is this
data available to our customers, but we also rank (1-4)
the confidence we have in the data and the sources
it was taken from. With a broad portfolio of products
from around the world, this ranking not only provides
peace of mind for our customers, but also encourages
lower ranked suppliers to improve the documentation
available for us to make these calculations.
Accoya cladding at Beacon Square, Chichester by Halcyon Homes.
Corporate Responsibility
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
9
Non-Financial and Sustainability Information Statement
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
10
TCFD Disclosure
The group recognises that disclosure of the actual
and potential impacts of climate-related risks and
opportunities on an organisation is fundamental to
understanding the resiliency of the business in the
context of climate change and adaptation. Climate-
related issues can significantly affect multiple aspects
of an organisation’s financial performance and position,
both now and in the future.
The Task Force on Climate-Related Financial Disclosures
(TCFD) has provided a framework for addressing
these risks and opportunities that ensures high-
quality and decision-useful disclosures, which enable
interested stakeholders to understand the impact
of climate change on diverse organisations. These
recommendations are structured around 4 thematic
areas: Governance, Strategy, Risk Management, and
Metrics & Targets. These disclosures are reported on
pages 11 to 19 as well as in the Principle Risks and
Uncertainties on page 24 to 27.
These four overarching thematic areas are supported
by 11 specific recommended disclosures focused on
assessing and managing climate-related risks and
opportunities. The company has responded to all
11 recommendations, however, we are unable to
provide a full account of our GHG impacts (Metrics
and Targets: Recommendation B and parts (g) and
(h) of the 2022 regulations) as we have yet to quantify
all our downstream emissions, although we expect
this to contribute minimally to our overall footprint.
Currently, we are unable to express our risks in
quantifiable financial terms, however, we are committed
to enhancing our disclosure practices to incorporate
financial metrics in our risk assessments in the future.
THEMATIC AREA
a) Describe the board’s oversight of climate-related risks and opportunities.
b) Describe management’s role in assessing and managing climate-related risks and
opportunities.
Governance
RECOMMENDATION
a) Describe the climate-related risks and opportunities the organisation has identified
over the short, medium, and long term.
b) Describe the impact of climate-related risks and opportunities on the organisation’s
businesses, strategy, and financial planning.
c) Describe the resilience of the organisation’s strategy, taking into consideration
different climate-related scenarios, including a 2°C or lower scenario.
Strategy
a) Describe the organisation’s processes for identifying and assessing climate-related risks.
b) Describe the organisation’s processes for managing climate-related risks.
c) Describe how processes for identifying, assessing, and managing climate-related risks
are integrated into the organisation’s overall risk management.
Risk
Management
a) Disclose the metrics used by the organisation to assess climate-related risks and
opportunities in line with its strategy and risk management process.
b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions,
and the related risks.
c) Describe the targets used by the organisation to manage climate-related risks and
opportunities and performance against targets.
Metrics &
Targets
Non-Financial and Sustainability Information Statement
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
11
Governance
We consider climate change to be a significant Board-
level strategic issue, with the Chairman, Nick Latham,
setting the agenda. Ultimately, responsibility for both
assessing and managing climate-related risks and
opportunities, along with all ESG matters, sits with
the Environmental Director, Piers Latham, and the
environmental compliance team. It is the responsibility
of the Environmental Director and Compliance manager
to report these risks to the executive board.
The Audit Committee also plays an important role in the
management of these issues in reviewing the risks of
the group, including climate change risk. The report of
the Audit Committee can be found on page 37.
The board oversees target setting and monitoring,
including in the area of environmental impacts and
climate change adaptation/mitigation. Risk mitigation
is discussed in every board meeting and any newly
identified risks, or risks that have materially changed,
are communicated throughout the organisation for
monitoring and action. Progress towards climate-
relevant and other sustainability goals is also reported
and discussed in these meetings as and when relevant,
and these updates provide a valuable input into the
concurrent discussions of strategy, major plans of
action, and risk management.
Next Steps
We will continue to engage at both board and
management level on climate-related issues, and further
integrate best practice into our internal governance
structures and processes in the coming years.
Strategy
We recently completed a thorough risk and opportunity
analysis to identify our potentially material risks and
opportunities in the short, medium and long term. For
the purposes of this analysis, short-term was defined to
be less than three years, medium-term between three
and ten years, and long-term ten years and onwards, as
the lengths over which climate change is anticipated to
affect the business.
We considered a wide array of both transition risks and
physical risks, in line with TCFD guidance. Transition
risks include policy and legal risks (e.g. emerging
regulation or litigation), market risks (e.g. shifts in
consumer preferences), reputation risks (e.g. brand
damage), and technological risks (e.g. disruptive
influence of new technologies). Physical risks include
acute events (e.g. storms, floods, or heatwaves) and
chronic risks (e.g. sea level rise or long-term changes in
precipitation). The most material risks and opportunities
identified are detailed in the table on pages 12 to 14.
Valchromat and HI-Macs® installed at Catford Mews.
JAMES LATHAM PLC ANNUAL REPORT 2024
12
Strategic Report
Material Risks and Opportunities
Category
Likelihood
Impact
Timeframe
Description
Mitigating factors / response
Risk
Transition -
Reputation
Possible
Moderate
Medium-
term
Inability to meet public
targets may erode
stakeholder confidence,
while obfuscation or
errors related to climate
disclosures could harm the
organisation’s reputation.
This might discourage
investment or lead to a
decline in demand for
services.
We already have SECR
reporting underway, allowing
for some visibility of carbon
impacts and sustainability
reporting within our annual
report for several years. This
year we have quantified our
GHG impacts across scopes
and will continue to do so
on an annual basis in the
interest of transparency,
expanding our footprint to
include downstream emission
sources over time.
We are firmly committed to
both reducing our climate
impacts and to only targeting
what is actually achievable. As
such, all climate goals will be
subject to thorough analysis
prior to announcement,
minimising the risk of over-
promising in this space.
Reputational
impacts of poor
environmental
performance or
missing climate
targets
Physical -
acute
Possible
Moderate
Acute physical events
around the world could
cause supply chain
disruptions. For instance,
increased precipitation
volumes and intensity,
combined with rising sea
levels, may lead to flooding,
posing a threat to suppliers
worldwide. Additionally, drier
conditions in other regions
may increase the risk of
wildfires, which could have
disastrous consequences
for certain timber suppliers
and result in supply shocks
for certain wood types (with
attendant price increases).
We have built strong
relationships with our
suppliers over time, so we
are well positioned to find
solutions to supply chain
disruptions. We regard our
value chain as resilient to
acute disruptions due to
the availability of alternative
suppliers for all key materials.
We have agreements in
place at multiple ports across
different geographies, so we
will be able to ensure material
flows can continue even if
certain routes and ports
suffer from acute climate-
related events.
Increase in
extreme weather
events impacting
the supply chain
Medium-
term
Physical -
acute
Possible
Major
Acute physical events, such
as storms and floods, may
directly impact James
Latham’s operations and
facilities. The incidence
of such events is likely to
increase over time. Rising
temperatures are expected
to drive increased cyclone
intensity, which also poses a
threat to depots.
Our operations span diverse
geographical areas and
we have disaster recovery
plans in place to ensure
business continuity in case
of emergencies. We carefully
consider environmental risks
before purchasing or leasing
sites to limit our exposure to
such risks.
Increase in
extreme weather
events impacting
facilities/
operations
Medium to
long-term
Non-Financial and Sustainability Information Statement
JAMES LATHAM PLC ANNUAL REPORT 2024
13
Strategic Report
Material Risks and Opportunities (continued)
Category
Likelihood
Impact
Timeframe
Description
Mitigating factors / response
Risk
Physical -
Chronic
Possible
Major
Long-term
Traditional regions for
growing specific wood types
may become less productive
over time (due to chronic
changes in precipitation
and temperature). This
could cause displacement of
producers or impact timber
quality and availability
and require sector-wide
evolutions of supply chains.
If not adequately and
proactively addressed, this
could result in yield declines,
price rises, and supply
disruptions.
We are confident that our
key suppliers are aware
of these coming climatic
changes and taking steps
to limit risk exposure. We
maintain robust channels
of communication with
suppliers and will ensure
that these long-term risks
are adequately considered
and addressed.
Long-term climatic
disruptions to the
forestry sector
Transition -
Reputation
Possible
Moderate
Cultivating a reputation as a
climate leader, consistently
complying with relevant
regulations, and setting
ambitious goals can result
in reputational gains,
significant growth, and the
ability to attract top talent.
As more organisations adopt
sustainability requirements,
exceptional performance
in these areas may lead to
preferential treatment by
customers and our carbon
calculator can set us apart
from peers and enhance our
image as industry leaders.
Sustainability reporting
is included in the Annual
Report, highlighting the
organisation’s commitment
to environmental and social
responsibility. Additionally,
the company engages in
ongoing monitoring of sector
norms, ensuring alignment
with industry best practices.
Reputational
Impacts of
positive climate
performance
Medium to
long-term
Transition -
Policy &
Legal
Possible
Moderate
Medium to
long-term
Rising taxes on fossil
fuels and other emission
sources would lead to direct
expenditure increases,
especially in areas like
transport. Suppliers relying
on fossil fuels will also pass
on costs, and inflationary
pressure is anticipated
throughout the value chain.
Additionally, increased
costs related to phasing
out fossil fuel vehicles,
purchasing electric vehicles
(EVs), and implementing
other emission reduction
measures are expected.
We are continuing to reduce
our exposure to potential
carbon and fuel taxes in the
future by investing in on-site
renewable energy generation
and the electrification of our
fleet, forklifts, and processes.
In regard to increased costs
in the value chain, rising
procurement costs are likely
to affect all organisations in
the sector and can largely be
passed on to end customers.
Carbon taxes
Category
Likelihood
Impact
Timeframe
Description
Mitigating factors / response
Risk
Category
Likelihood
Impact
Timeframe
Description
Mitigating factors / response
Opportunity
Non-Financial and Sustainability Information Statement
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
14
Material Risks and Opportunities (continued)
Category
Likelihood
Impact
Timeframe
Description
Mitigating factors / response
Opportunity
Resilience
Possible
Moderate
Medium to
long-term
Investments in on-site
renewables or the purchase
of Power Purchase
Agreements (PPAs), coupled
with a transition to an
electric vehicle (EV) fleet,
can enhance resilience
against potential carbon
taxes and volatility in fossil
fuel markets. Subsidies
and public programs
may facilitate these
initiatives, contributing
to more sustainable
and economically stable
operations.
We currently procure 100%
renewable energy for all
our sites and have installed
solar panels at two of our
depots (Leicester and Yate).
We will continue to invest in
the expansion of our on-site
power generation capacity,
which will form a key part
of our forthcoming carbon
reduction plan. We have also
adjusted our company car
policy to ensure only electric
or hybrid vehicles are being
utilised.
Resilience from
fossil fuel market
volatility
Transition -
Policy &
Legal
Possible
Moderate
Efficiency and productivity
gains can be achieved by
streamlining compliance
with environmental and
reporting requirements.
For instance, compliance
with TCFD drives proactive
climate risk mitigation
and shapes company
policy. Mandated efficiency
improvements can also
reduce costs in the long run.
The increasing requirement
to disclose will lead to more
accurate reporting and
recording of information,
greater carbon literacy
understanding within
James Latham and
the wider industry, and
enhanced climate resilience
and preparedness.
We actively monitor the
regulatory landscape,
ensuring compliance and
risk mitigation. Additionally,
we maintain a close working
relationship with Energise (a
sustainability consultancy)
for ongoing collaboration,
guidance, and support.
Reduction in cost
due to efficiency
and productivity
gains
Short to
Medium-
term
Markets
Likely
Major
The demand for timber
products as a sustainable
building material is growing,
especially when compared
to alternatives like concrete
and steel. This trend may
be driven by an increased
emphasis on embodied
carbon in buildings and
adherence to BREEAM
standards.
We have involvement and
engagement with TDUK
which influences UK policy
and ensures continued focus
on timber as a key element
of the construction sector’s
decarbonisation journey.
We have pioneered a carbon
calculator tool to allow for
carbon impact transparency,
which ensures we are well
placed to take advantage of
this growing opportunity.
Increased demand
for low-carbon
products
Medium to
long-term
Non-Financial and Sustainability Information Statement
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
15
Influence on Strategy
Given our sector and the nature of our operations,
Transition and Physical risks are both likely to
impact the organisation over time. While none
of the identified risks are considered likely to
be financially material in the short term, an
awareness of this risk and opportunity landscape
has influenced a variety of strategic decisions.
Climate-relevant issues are considered with
growing frequency at the board level and various
initiatives are currently being rolled out, including
increasing the number of electric forklifts,
installing solar panels at depots, a variety of energy
efficiency measures, and growing use of IT to
reduce travelling. An awareness of the need to
reduce our carbon footprint also contributed to
the decision to procure 100% renewable energy
for all our depots and to adjust our company car
policy to ensure mainly electric or hybrid vehicles
are utilised.
An appreciation of the market opportunity
presented by climate mitigation measures has
prompted significant effort to position ourselves as
leading suppliers of climate-relevant information
alongside our products. We are proud to be the first
UK suppliers of timber and panel products to make
data on the carbon impact of our products easily
accessible to all customers via our Carbon Calculator
tool. We have partnered with the sustainability
consultancy Energise to create a net zero strategy
over the coming years to refine our approach
to decarbonisation and allow for the setting of
concrete targets.
Strategy Resilience
To better assess the resiliency of James Latham’s
strategy in the coming decades, we examined the
identified risks and opportunities under different
climate scenarios and across different time horizons.
The selected scenarios (detailed below) represent real-
world possibilities that would subject the organisation
to differing degrees of physical and transition risks
across various timeframes. We are confident that
these three scenarios together enable us to assess
a comprehensive range of potential risks and
opportunities, thereby ensuring the resilience of our
strategy across a variety of future eventualities.
This scenario assumes early, coordinated global action on climate change, limiting
GHG concentrations in line with the RCP 2.6 trajectory. Under this scenario, energy prices
rise significantly, significant investment is made in new technologies, and consumer
preferences change markedly. As a result, warming is limited to under 2° by 2100.
Early/Smooth
Transition
Scenario
Under this scenario, global climate action is delayed, and therefore more severe.
The policy response is more disjointed, allowing emissions to continue to climb in the
near-term before sharp reductions are made, partially via the introduction of a stringent
carbon taxation regime. Late but forceful action still allows for alignment with the
RCP 2.6 pathway and warming limited to under 2° by 2100.
Late/Disruptive
Transition
This scenario assumes that there is no further acceleration of climate action, and GHG
concentrations proceed in line with the RCP 8.5 pathway. This results in warming of over
3° by 2100. Transition risk is limited, but physical risks increase sharply.
High Emissions
Scenario
Description
Oak Veneered MDF shelving installed by Dowels Bespoke
Joinery and Interiors.
Non-Financial and Sustainability Information Statement
This analysis yielded several key insights:
l An early/smooth transition would lower the
magnitude of most risks in comparison to the other
scenarios. In this scenario, James Latham would be
able to engage in forward planning and avail itself
of expanding areas of opportunity in a predictable
manner. Physical risks would also be minimised, so
there would be less chance of direct physical impacts
and second-order consequences such as geopolitical
conflict in response to major climatic changes.
An early/smooth transition would therefore not have
a material impact/change on either the business
model or strategy of the Group.
l A delayed / disorderly transition would likely result
in the greatest risk exposure to James Latham.
In this scenario, Transition risks are especially
material in the medium to long term because new
regulation is forcefully and suddenly imposed,
increasing the likelihood for more severe economic
impacts. A delayed/disorderly transition would
therefore have a greater impact/change on the
business model or strategy of the Group.
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
16
l A high emissions scenario would, predictably, increase
exposure to all physical risks. As these are generally
not the most material to James Latham, this scenario
would likely be less disruptive than others in certain
areas, e.g. the absence of carbon taxation and the
attendant economic impacts. In this scenario, it would
be most difficult for James Latham to achieve its own
decarbonisation goals, however the potential benefits
of doing so would be greater as it would serve to
distinguish the organisation from most competitors.
Risk Management
Identifying and assessing risk and opportunities
Risk registers covering risks of all types are maintained
for all entities and geographies within James Latham.
The Audit Committee is responsible for identifying
emerging risks and incorporating these into existing
risk registers. Site managers are responsible for doing
the same for site-specific emerging risks. Newly
identified risks at the site level are subsequently
considered at the next meeting of the Audit Committee.
Opportunities are presented to the board by the
Environmental Director and are communicated down
to the rest of the group.
5
Almost Certain
Figure 1. Risk Criteria
Impact
Likelihood
5
10
15
20
25
4
Likely
4
8
12
16
20
3
Possible
3
6
9
12
15
2
Unlikely
2
4
6
8
10
1
Rare
1
2
3
4
5
1
Insignificant
2
Minor
3
Moderate
4
Major
5
Critical
Non-Financial and Sustainability Information Statement
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
17
Climate risks are assessed in terms of both impact
and probability. Impact ratings range across five
qualitative levels from Insignificant to Critical, while
probability ranges across five defined levels from Rare
(<5% probability) to Almost Certain (>90% probability).
Impact is understood to be a measurement of potential
harm, including both financial and operational impacts.
Overall risk ratings are a product of impact and
probability, as defined by a 5 x 5 risk matrix (see Figure 1).
As described above, these risks are grouped into
two categories: Physical risks, which relate to the
physical impacts of climate change, and Transition
risks, which relate to the transition to a low-carbon
economy. Physical risks are classified as being acute
(such as floods, heatwaves, or storms) or chronic (such
long-term variations in temperature/precipitation, sea
level rise, etc.). Transition risks include everything
from emerging regulation to changes in consumer
preferences, and are categorised as being either:
Reputation, Technology, Policy & Legal, or Market related.
These risks are evaluated across the short, medium, and
long term, as described in the Strategy section above.
Managing Risk
The risk management processes outlined in the Principal
Risks and Uncertainties section of the Strategic Report
apply equally to climate-related risks and are overseen
by the Audit Committee who reviews the group’s risk
register as part of its regular monitoring process. The
duties of the Audit Committee include, on behalf of
the board, regular reviews of risks of all types, including
climate-related risks. Risks are responded to as necessary
by adopting appropriate strategies and maintaining
strong systems of internal control. These strategies
however do not attempt to eliminate risk but control the
risks to an appropriate level that allows us to confidently
continue to generate acceptable shareholder returns.
Next steps
We have performed a thorough climate-related risk
and opportunity analysis and assessed identified
risks and opportunities by the same criteria as risks
of all other types. We do, however, recognise that
further harmonisation of risk classification systems
and integration of identified risks into existing risk
registers remains to be undertaken. We aim to perform
a thorough review of existing risk registers and ensure
all material climate-related risks are incorporated
where relevant. This will also involve the definition and
implementation of specific monitoring and management
procedures for these risks where necessary.
Moralt FireSmoke Door Blanks.
Non-Financial and Sustainability Information Statement
Metrics & Targets
Ensuring effective monitoring of our exposure to climate-related risks necessitates the maintenance of an up-to-
date dashboard of pertinent indicators. We have begun to collect data in various climate-related areas and intend to
expand our range of metrics over time. In addition to quantifying our operational emissions, pertaining to Scopes 1
and 2 in the UK, we also gather data on the proportion of our electricity contracts backed by renewable sources, and
our total energy usage. We present these figures either as proportions or relative to some operational metric to allow
for the reporting of gains in efficiency irrespective of business growth.
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
18
UK GHG emissions intensity relative
to turnover (Scopes 1 & 2)
(tCO2e / £m)
UK GHG emissions intensity relative
to volume (Scopes 1 & 2)
(tCO2e / per thousand m3)
Variance from
previous year
24.7%
7.1%
2023
14.63
11.18
2022
11.73
10.44
Metric (unit)
2021
12.98
9.69
2020
14.86
8.80
An awareness of these metrics allows us to monitor our progress towards our climate-related goals. This helps us
understand our exposure to risks such as reputational damage and carbon taxation. These metrics additionally yield
insights into our potential to avail ourselves of several opportunities, such as leveraging sustainability credentials to
win customers or attract talent.
A breakdown of our Scope 1, Scope 2 & 3 overall emissions are below:
Scope 1
Scope 2
Scope 3
Total
tCO2e (Location)
4,925.3
2.1
Scope
tCO2e (Market)
185,485.4
190,412.8
4,925.3
316.6
185,485.4
190,727.3
Non-Financial and Sustainability Information Statement
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
19
Detailed Scope 3 Breakdown below:
Category 1: Purchased Goods & Services
169,159.1
Category 9: Downstream Transportation and Distribution
5,712.3
Category 4: Upstream Transportation & Distribution
5,658.3
Category 2: Capital Goods
2,932.6
Category 3: Fuel and Energy-Related Activities
1,169.9
Category 7: Employee Commuting (including Homeworking)
664.8
Category 6: Business Travel
132.1
Category 5: Waste Generated in Operations
56.3
Total
185,485.4
tCo2e
Category
Our Targets
As per governmental requirements to reach carbon net zero by 2050, we are progressing with feasibility analysis and
refining our carbon strategy, with an aim to set a science-based target along with a variety of complementary targets
and key performance indicators that will be drafted this year as part of our net zero strategy formulation process.
Next Steps
Over the coming years, we aim to broaden the scope of our analysed metrics to create a comprehensive dashboard
of indicators that provide insight into our risk exposure. We understand that there remain some minor gaps to fill in
our understanding of our GHG impacts (e.g. the end of life of our sold products). We are dedicated to improving the
coverage and accuracy of our GHG footprint year on year to support the effective management of our emissions and
monitoring of progress. In time, we aim to explore and include more risk and opportunity specific metrics, such as
the proportion of our revenue associated with high-carbon vs. low-carbon sectors.
Daintree House by Sterlingdale
Situated deep in a woodland glade in
Dorset, the Daintree House by Sterlingdale
represented the largest volume of timber-
based products ever supplied by James
Latham for a single domestic project. Exterior
cladding products were specified with
extra consideration given due to the humid
conditions, whilst the interior fit-out was
completed using some of our most exclusive
decorative and structural materials. Valued at
£2.5m, the property was featured throughout
the national press and was eventually snapped
up by the company Omaze who offered the
property as a prize in a charity lottery.
Non-Financial and Sustainability Information Statement
JAMES LATHAM PLC ANNUAL REPORT 2024
20
Corporate Responsibility
Strategic Report
Energy and our Carbon Footprint
We recognise that alongside our timber environmental
policy, we have a responsibility to minimise our
local environmental footprint. We have developed
an environmental management system which is
accredited under ISO14001. This commits us to
considering energy efficient options for lighting,
heating and ventilation and transport, before making
purchasing decisions.
Total annual energy use of 22,120,618 kWh is further
analysed in the graphs below.
Our GHG emissions have been calculated using the
UK Government (Defra), Circular Ecology Database
(ICE) and Plastic Europe Eco profiles. We use and
publish our location-based emissions for Scope 2 for
greater transparency despite our efforts in purchasing
low-carbon energy. Our detailed data methodology
including materiality and sensitivity analysis is available
on request.
As a distribution company, the majority of our emissions
are from our vehicles. These are increased this year
due to the increase in volumes delivered on our own
vehicles and hence numbers of journeys undertaken.
We have continued to encourage working from home
on a hybrid basis where this is possible for the efficient
running of our operations.
Waste Disposal
We seek to minimise the use of packaging material
and to recycle discarded packaging material and paper
where it is practicable to do so, to avoid these materials
entering landfill. We have seen a good improvement in
reducing the amount of waste reaching landfill, as set
out in the table below.
1.5%
68.0%
1.0%
19%
4.0%
7.0%
2023
Calendar
Year
Electricity - 1,519,132 kWh
Natural Gas - 808,192 kWh
LPG - 4,247,036 kWh
Cars Electric - 9,907 kWh
Cars Diesel - 255,381 kWh
Cars Petrol - 224,403 kWh
HGV’s Diesel - 15,021,476 kWh
Gas and Burning Oil - 35,092 kWh
0.2%
0.1%
2.0%
67.0%
1.0%
19%
4.0%
7.0%
2022
Calendar
Year
Electricity - 1,500,357 kWh
Natural Gas - 781,257 kWh
LPG - 3,950,206 kWh
Cars Electric - 2,587 kWh
Cars Diesel - 368,336 kWh
Cars Petrol - 179,929 kWh
HGV’s Diesel - 14,195,771 kWh
Gas and Burning Oil - 39,840 kWh
0.2%
0.1%
Dust (tonne)
Liquid residue (tonne)
Trade effluent
Landfill
2022
529
2021
465
10
39
2023
585
25
Whilst every effort has been made to ensure data is
consistent across the years, there are some differences in
collection methods across this period.
1
2
3
Waste to landfill and diverted from landfill
Landfill (tonne)
Diverted from
landfill (tonne)
Total waste
Diverted from
landfill
2021
121
2020
87
2019
156
838
707
681
959
794
837
87%
89%
81%
2023
43
953
996
96%
2022
110
820
930
89%
2020
360
30
2
Production Waste (Dresser Mouldings)
JAMES LATHAM PLC ANNUAL REPORT 2024
21
Corporate Responsibility
Strategic Report
Supply chain transparency – Modern Slavery
Act 2015
We are dedicated to promoting ethical values and
integrity in our business behaviour by implementing
controls through ISO management and due diligence
systems. We are committed to taking all reasonable
efforts to prevent human trafficking and slavery within
our trading and operational purchase supply chains.
Our Modern Slavery Statement is updated annually and
is available on our website www.lathamtimber.co.uk.
Support of our communities
Our depots and all our employees are part of their
own local communities and we encourage interaction
with these communities by charitable donations, fund
raising activities and volunteering.
Each year we ask our employees to nominate charities
for the company to support. Our employees vote on
which charity should receive a donation of £20,000, and
this year we supported Alzheimer’s Society. 21 other
charities nominated also received a small donation.
We support environmental charities and this year
donated £20,000 to the Woodland Trust to continue
their work protecting and creating native woodland in
the UK. In addition we continue to support the National
Forest project in Central England, which started with
the planting of 250 trees to celebrate the company’s
250 year anniversary in 2007. We donated £10,000 this
year for them to continue their work in regenerating
industrial land and creating the first forest to be created
in England for over 100 years. In addition, £2m of our
cash deposits are held in a Green Fund, which is invested
in various green, environmentally friendly projects.
We donate our products, working with our customers
and suppliers to support worthy projects. A sample of
these are shown right.
Imaginarium at Leuchie House, North Berwick
The work undertaken by Leuchie House is
invaluable to its users. A centre dedicated to
providing holidays and short breaks for those
living with, and caring for those with neurological
conditions, it provides great respite to its patrons.
However, those working at the centre are also
under immense pressure to provide day-to-
day support for their visitors during their stay.
We worked with the Imaginarium Foundation,
and contractor SD Manufacturing to donate
EGGER decorative materials for a ‘Secret
Garden Room’, designed in conjunction with
specialist environmental psychologists, where
staff could spend some quiet time, regrouping,
re-energising and mentally refreshing, away
from the day-to-day pressures of providing such
a valuable service.
London School of Architecture/London
Festival of Architecture
As part of our developing relationship with the
London School of Architecture, we teamed up
with plywood manufacturer UPM to donate
a large quantity of their WISA Spruce Special
product to a highly worthy project in Dalston.
Designed around the existing church aisles to
resemble a modern day Chantry, the structure
within the Grade 2 listed Holy Trinity Church
provides study space for students from the
architecture school whilst also providing a
community space and kitchen, library, teaching
rooms and co-working spaces for local residents.
Initially commissioned as part of the 2024
London Festival of Architecture, the resulting,
demountable structure has been granted
permission to remain inside the church for a
minimum of five years, such is the perceived
benefit to the local community.
National Autistic Society, Chelsea Flower Show
Winner of a Silver Gilt Medal at this year’s
Chelsea Flower Show, we worked alongside
our supplier Accsys Technologies to provide
a quantity of their Flagship modified timber,
Accoya Color, to the National Autistic Society
garden. Using toxin free, naturally modified
Radiata Pine, and designed to be fully
demountable, with no mechanical fixings
or screws, the entire garden structure was
deconstructed at the end of the show and
relocated at the National Autistic Society
supported living site at Catrine Bank – alongside
the river Ayr in Scotland.
We have pledged to encourage fund raising efforts of
our employees by matching up to £500 of any money
they raise. This year, activities included the Great North
Run, White Collar Boxing, the Edinburgh half marathon,
100 mile run in March challenge, arranging an afternoon
tea and donation of toys to local childrens charities.
We encourage volunteering by allowing all employees
to take a day off for volunteering at full pay.
Corporate Responsibility
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
22
Health and Safety – Providing a safe working
environment
The handling of timber and panel products, both
manually and mechanically, and the stacking and
storage of these products at height, can be dangerous
activities. We are very active in assessing and
minimising the risks in all areas of the business and
educating the workforce to provide as safe a working
environment as possible for all people that come into
contact with the company.
We employ a full-time Health and Safety Manager
who reports to the board regularly, attends board
meetings twice a year and chairs health and safety
meetings at all depots. We have a 3-year action plan
and all sites are subject to audit, with their audit scores
and trends being monitored at quarterly management
meetings. Management and employees are actively
involved in improving our safety record, which is high
on everyone’s agenda. All employees take a personal
responsibility for making sure their actions and
behaviour maintain safety for all and we encourage
reporting of “near misses” to enable us to constantly
improve our safety systems.
In addition, we recognise that safety extends beyond
our warehouses. We regularly monitor vehicle accidents
in our lorries and company cars to assess whether
further training is required. We operate a programme
of lorry driver mentoring and are members of the Road
Haulage Association who carry out yearly audits to
make sure we are operating safely and efficiently. Our
lorries all have tracking devices fitted which provide
alerts and information on speed and the route taken, as
well as cameras and side scanners to not only provide
live footage for training and insurance purposes, but
also to provide improved rear and side visibility to our
drivers, minimising blind spots. We undertake driving
licence verification checks on a regular basis for all
our drivers. The latest technology allows us to monitor
driver behaviour not only from a safety aspect but also
from an environmental aspect, minimising fuel use
by efficient routing. We also are accredited under the
Safety Schemes in Procurement scheme.
Our employees
The group’s ability to achieve its commercial objectives
and to serve the needs of its customers in a profitable
and competitive manner depends on the contribution
of its employees. Employees are encouraged to develop
their contribution to the business wherever they
happen to work. The group regularly keeps employees
up to date with financial and other information, through
the company Intranet and internal newsletters.
We have undertaken employee surveys and have
worked on the key areas arising from the survey
to improve our strategies on issues including staff
retention, communication, succession planning,
training and development for all employees. We plan
to continue to use this tool on an ongoing basis to
continue to improve the working environment for
all staff as well as improve the quality of service that
they offer to our customers. We publish our internal
magazine, 1757, three times a year to help communicate
all the company initiatives to our employees.
All employees have the opportunity at least once
a year to meet with their manager to review their
performance, discuss objectives and build their personal
development plan. We are committed to developing
the people management skills of all leaders to ensure
they develop skills to motivate and support their teams.
Quarterly meetings are held in each location, chaired
by a board member, where employees’ views
concerning the performance of their profit centre
are considered. To encourage the involvement of
employees in the group’s performance, share option
schemes are operated together with bonuses linked
to performance.
Above Pete Miller and Steve-Stalker, White Collar Boxing.
Right: David Landsburgh at the Edinburgh Half Marathon.
Corporate Responsibility
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
23
The group’s employment policies do not discriminate
between employees, or potential employees, on the
grounds of age, gender, disability, sexual orientation,
colour, ethnic origin or religious belief. We would make
every effort to enable employment to continue for any
employees that become disabled. The sole criterion for
selection or promotion is the suitability of any applicant
for the job. The group’s pay policy is to ensure that
every employee, other than apprentices, are at or above
the Real Living Wage.
Our trainees are put through external courses obtaining
qualifications, including MBA’s, NVQs in Sales and
Warehousing, accountancy qualifications and the Wood
Science exams covering the properties and uses of
timber and panel products. We also use the government
apprenticeship levy to help train our employees in skills
relevant to our industry.
We have 14 members of our gifted and talented
employees in the Latham Academy, who receive
extensive training over a two year period, which
will involve visiting suppliers mills and factories and
forests, spending time across the company in different
depots, including head office, and building skills in
communication, assertiveness and IT. Each person has a
mentor to help them make the most of this opportunity.
Details of the number of employees and their related
costs can be found in note 4 to the account, and key
decisions taken which have considered the employee
interests are set out on page 4.
The Reading Room
The Reading Room in Sway, Hampshire was
developed as a safe space for people living with
mental health issues and degenerative conditions
such as dementia. We collaborated with long-
term partner spudWORKS to donate a range
materials for interior and exterior use, including
the plywood which was painstakingly cut into tiles
to produce modern representations of traditional
cedar shingles. Situated on the footprint of a
historic water tower, the circular design lent itself
to smaller, modular external finishes, rather than
long rigid cladding sections. Plywood’s inherent
flexibility and tensile strength meant that it could
be formed to achieve the desired curvature
without compromising on its structural integrity.
Premium Oak staircase by RTH Staircases.
Principle 4 – Embed effective risk management, considering both opportunities
and threats, throughout the organisation.
All business involves taking risks, both general risks
of trading and risks specific to our industry and the
market in which we operate. These risks change and
evolve and our risk management processes take a
balanced approach to help us to deliver our strategic
objectives over the medium term by adopting
appropriate strategies and maintaining strong systems
of internal control. These strategies however do not
attempt to eliminate risk, but control the risks that we
believe are appropriate to take to generate acceptable
shareholder returns, without affecting our ethos on
environmental and health and safety.
The risk reporting framework is designed so that
information is passed in both directions, up and down
the company’s structure. A central risk register is
maintained by the board and reviewed at least once
a year by the Audit Committee. At those times the
Audit Committee considers the emerging risks and
the risk appetite of the group and adjusts the risk
register accordingly.
These risk assessments are fed down to the depots,
who add their own risks specific to their sites. Risk
mitigation is discussed in every board meeting at
depot and group level and reported back to the
board. Any new or increased risks identified through
this process are communicated to all depots for
monitoring and action. Where the risk environment
changes significantly, then these risk control and
communication processes are accelerated so that any
new information is passed up and down the company’s
structure as soon as possible.
Business operations are controlled by the site director
at each location and they are responsible for training
of their staff, local controls including Quality Systems
and service levels, monitoring KPI’s and ensuring group
policies are adhered to. These controls are monitored
at the quarterly board meetings. Central functions
such as health and safety, insurance, IT, credit control,
finance and HR are controlled by the executive boards
of James Latham plc and Lathams Limited, who are
responsible for assessing these risks and setting policies
and procedures and ensuring that adequate training
is given. Internal audit activities, such as Health and
Safety audits, financial internal audits, Environmental
Chain of Custody audits and Quality System audits
provide assurances to the board that policies have been
implemented properly and are being adhered to.
We have considered below the current risk factors that
are considered by the board to be material. However in
a changing world, new risks may appear or immaterial
risks may become more important, and the directors will
develop appropriate strategies as these risks appear.
In the year to 31 March 2024 we paid particular
attention to climate change, the Supply Chain risks
associated with the ongoing conflict in Ukraine and the
unrest in the Middle East, Cyber Security and the high
inflation and its effect on our costs and the general
economic environment.
The principal risks that are considered to potentially
have the most impact on the group’s future operating
results and the risk mitigation measures that we have
introduced, are considered below.
Principal Risks and Uncertainties
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
24
Continued overleaf
Market and Macroeconomic Conditions
Risk Status – Medium
Description
The group’s sales are predominantly based in the
UK and the Republic of Ireland. It is exposed to any
slowdown in the UK or Irish economy. Negative or
uncertain economic conditions could affect our
customers’ business resulting in them reducing
purchases from our group.
Risk Direction – Reduced
Mitigation
The distribution of our customers across the UK and Irish economic
sectors helps reduce the impact of slowdown in any one sector.
Regular financial information helps the board assess current trends.
Our depots keep in close contact with our customers and discuss
with them how market conditions are affecting their business.
Principal Risks and Uncertainties
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
25
Competition from new and existing businesses
Risk Status – Low
Competitive pressures from existing businesses and
new entrants to the market could reduce prices,
margins and profitability.
Changes in customer purchasing habits may lead to
different routes to market.
Risk Direction – Unchanged
An assessment of the market and competitor activity is discussed at
each depot’s quarterly board meeting. This includes an assessment
of our routes to market as challenges to our depot structure and
operations emerge and assessment of our pricing strategies.
We continue to invest in improving on-line trading platforms and
other digital methods to meet customer demand.
Inventory levels move out of line with sales requirements and market prices
Risk Status – Medium
Product shortages can lead to high prices and over
purchasing throughout the trade, resulting in excessive
stock holding. Weaker prices lead to stock reduction
throughout the supply chain, which magnifies the
reduction in demand and then leads to even sharper
falls in price. Erratic shipments can result in stock
excess and shortages in specific special products.
The market for certain product lines changes, resulting
in them becoming overvalued and slow moving or
obsolete.
The Global Supply Chain difficulties may cause demand
for some products to switch to alternative products.
Risk Direction – Unchanged
To mitigate this risk, the group has a strict policy of stock level
targets by product group and depot. These are monitored monthly
by the board which centrally controls the purchase of stocks and
takes a group view on the action to be taken to limit the group’s
exposure to rapidly changing price levels. Live stock level reports
and predictive tools are available for our managers to monitor
current and future levels.
The group’s reduced reliance on commodity items has reduced
this risk of over exposure to low value, high volume and price
sensitive items, although as an important area for us, this risk
cannot be completely removed.
The board has set strict guidelines relating to purchases where the
specification is unique to a particular customer, and has policies
in place to ensure that no individual can commit the group to a
purchase greater than their authorised limit.
Slow moving and obsolete stocks are monitored regularly and
action taken to mitigate the risk.
Reputational Risk
Risk Status – Low
Over many years the group has built up a reputation
for integrity and responsible trading and is
aware that this can be easily damaged with the
consequential cost to the Latham brand.
Risk Direction – Unchanged
Policies are in place which cover standards of behaviour and good
governance.
On the purchasing side the group has a strong responsible
purchasing policy managed by our Environmental Manager to
minimise possible damage to its reputation and legal risk from
dealing in illegal products.
Supply Chain disruption could result in shortages of product
Risk Status – Medium
Although a high percentage of the group’s
imported products now come from Europe and
North America, it has significant dealings with
countries where the political climate is less stable,
resulting in a strategic threat to the supply of
product to the group.
The group is reliant on certain suppliers for certain
product ranges and their inability to meet our
demand due to financial or production difficulties
could result in stock shortages.
Risk Direction – Unchanged
To mitigate the risk from these pressures, the group’s dealings are
spread across a large number of countries of supply. The group
keeps informed of developments in higher risk producer countries.
We maintain close relationships with our suppliers, including
ports and shipping lines, to ensure that we are pre-warned of
difficulties of supply. We maintain relationships with suppliers of
alternative products.
We also maintain close relationships with customers to help them
find alternative sources of supply.
The effect of the Ukrainian conflict on supply chains continues to cause
difficulties with certain products and we have found alternative sources
of supply for many of our customers. The effect of the Middle East
conflict has been to affect lead times on our products arriving from the
Far East and so we have adjusted our inventory levels to compensate.
Principal Risks and Uncertainties
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
26
Environmental Risks and Carbon Reduction
Risk Status – Medium
Climate change could significantly affect our
trading environment as the economy moves to
meeting the UK governments pledge to achieve a
net zero target by 2050.
Environmental matters are increasingly important
to our customers, employees and investors and
we need to respond to the increasing information
expectations.
Risk Direction – Increased
ESG forms an increasing part of board discussions and various
initiatives are being introduced or trialled including increasing the
electric component of our forklift and vehicle fleet, LED lighting and
solar panels, and use of IT to reduce travelling.
In addition, we are the first in the industry to publish data on the
carbon impact of our products, with our Carbon Calculator.
Training has been given to senior management on the wider effects
of climate change.
Inability to trade from a depot
Risk Status – Low
Inability to trade from a depot due to an incident,
internally or externally, or the effects of a pandemic,
could cause loss of revenue and profits.
Risk Direction – Reduced
Disaster recovery plans are in place at group and depot levels.
These are reviewed by the Audit Committee and the board, as well
as discussed at depot level. Insurance policies are in place to cover
increased cost of working.
Our distribution network, as well as our inventories held at various ports,
allow us to manage customers requirements from a different location.
Inability to fill key roles within the organisation
Risk Status – Medium
Our staff are key to the success of our business,
and our inability to fill key roles could affect our
profitability.
Risk Direction – Unchanged
The group, through the Remuneration Committee, is committed
to having remuneration, training and development policies to
make James Latham the employer of choice. Benchmarking takes
place to ensure our senior staff are rewarded appropriately.
Significant time is spent on identifying and training the leaders of
the future, with our Trainee and Talent Pool programmes. The group
also makes sure that continuity planning is considered by each
senior employee with this process overseen by our HR Manager.
Principal Risks and Uncertainties
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
27
Defined Benefit pension scheme funding could increase
Risk Status – Medium
The group is required by law to maintain a minimum
funding level in relation to its obligations to provide
pensions to members of the pension scheme. This level
of funding is dependent on a series of external factors,
such as investment performance, life expectancy
and gilt yields. Significant changes in these areas can
also have a significant effect on the funding levels.
The sensitivity of the funding level to these factors is
disclosed in note 20.2 in the notes to the accounts.
Risk Direction – Reduced
The scheme has been closed to new entrants for many years.
The board regularly reviews the investment strategy and
performance of the pension scheme investments.
The significant surplus within the defined benefit pension
scheme has enabled the trustees to amend the investment
strategy to reduce the risks and closely match investment returns
to the valuation of our liabilities.
Information technology failures impact our ability to trade
Risk Status – Medium
The operations of the group depend to a large extent
on the availability and reliability of our information
technology systems. A failure of systems, either of
hardware, software or communications, for an extended
period of time could impact our ability to trade.
Risk Direction – Unchanged
Our main computer servers are located in a secure site
away from the trading operations, hosted in an external data
centre. The systems are monitored 24 hours a day, 365 days a
year and maintenance work carried out on an ongoing basis.
The infrastructure is regularly reviewed and updated.
Back ups are held offsite in a separate data centre to provide
extra resilience. Should there be any failure in the systems in the
main datacentre, then the back ups held in the secondary data
centre can be made operational. Regular disaster recovery tests
are carried out.
Software maintenance contracts ensure that our business
critical software is up to date, allowing software problems to be
resolved quickly.
This year we completed a major upgrade to our ERP systems
giving us new opportunities to use technology to improve our
operational efficiencies.
Cyber Security and Data Protection
Risk Status – Medium
The risks of Cyber attack, including Ransomware
demands are increasing, and may lead to disruption to
business and loss of data.
Theft of data relating to employees, customers and
suppliers could result in a regulatory breach under
GDPR.
Risk Direction – Increased
Cyber training is carried out on a regular basis and for each
new employee as part of their induction process. We have also
continued to invest in our Cyber security systems, including
improved firewall and penetration testing systems. Our IT
disaster recovery plans include provisions for Cyber Attack.
All new technologies being considered are assessed for security
implications before they are introduced.
Our GDPR policy is regularly reviewed and we ensure that our
marketing activities are appropriately carried out.
The group monitors its performance against the following Key Performance Indicators that we believe best reflect
our performance and progress in achieving the company objectives outlined on page 6.
To maximise shareholder value over the medium term
Return on Capital Employed, defined as
Operating profit of £26.1m divided by Net Assets
of £215.2m plus Non Current Liabilities of £17.2m
less non current pension surplus of £15.9m.
(see Financial Review on pages 31 to 34)
Like for like revenue, adjusted for the effects of
acquisitions and working days, decreased 10.2%.
0
40
0
10
20
60
%
2022
2023
34.0%
2022
10
20
30
2023
51.7%
30
40
50
2024
21.7%
2024
5.0%
Key Performance Indicators
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
28
12.1%
-10
-20
-10.2%
Carbon Emissions
To provide a safe working environment for our staff
To improve service levels by improving warehouse facilities to speed order picking
over an extended product range
Carbon emissions shown as Tonnes of CO2 from
Scope 1 and Scope 2 per 1,000m3 of volumes sold
(see page 20).
Total number of injuries, no matter how minor,
and total number of reportable injuries, reported
per 100,000 hours worked, remain low as a result
of our continued focus on health and safety.
0
20
0
%
2
4
6
8
10
12
14
Accident
Reportable
Times
Volume of product sold per working
day remaining stable.
Stock turn based on volumes is slightly
below our target of 6.50 times.
500
2,500
2022
4
5
6
7
1,500
2021
9.69
2022
2023
1,900
2022
5.8
1,000
2,000
2022
2023
4.18
0.40
1,912
2023
6.3
5
10
Calendar Year
15
10.44
2023
2024
5.96
0.55
2024
1,895
2024
6.2
m3
11.18
4.83
0.26
Results for the year ended 31 March 2024
Revenue for the year ended 31 March 2024 was £366.5m,
£41.9m lower than the previous year.
We have seen strong performances from key areas of
the business during the financial year. Our panel
businesses have managed to increase volumes in a
challenging and competitive marketplace. Our timber
businesses have experienced falling values and generally
weak trading conditions throughout the year.
Supply lines have been reliable throughout the year with
limited disruption, enabling us to manage inventory
levels, balance stocks and plan purchasing strategies.
We experienced container freight rates continuing to
fall for much of the year. The conflict in the Red Sea has
resulted in some disruption and delays, consequently
we are now experiencing increasing freight rates.
Inflationary pressures have continued to dampen the
wider economy, consequently market conditions have
been challenging with some sectors and product
groups experiencing falling demand and weakening
values, resulting in those areas of our business
experiencing greater competition and margin pressure.
As we have seen during the pandemic our business
is agile, operating with a wide portfolio of products
and market sectors, and so the business has turned its
attention to product groups and sectors where it can
continue to trade successfully.
Following on from the last few years of unprecedented
events trading margins have returned to more
normal levels. Overheads in all areas have been well
controlled. Our focus has remained on improving
systems and processes to drive efficiencies and create
opportunities across all areas of the business.
The relatively seamless introduction of a new computer
operating system was a major piece or work and huge
success during the year. This platform has created an
opportunity to enable the business to introduce new
processes, drive efficiencies and increase productivity.
Continued inflationary pressures combined with the
political backdrop hasn’t helped confidence in the UK
economy resulting in our customers continuing to
purchase on demand, project led and on a short term
basis. Adequate supply and short lead-times have resulted
in challenging market conditions throughout the year.
Value engineering has been a key feature for both projects
and customers purchasing decisions. Considering all
these factors, demand for our range of products has
remained consistent and in line with our expectations.
Our focus has remained on maintaining and
improving customer service levels. In a bid to support
this we have continued to extend our operating times
with 9 of our distribution sites now operating 24/5
enabling us to meet our customers’ service expectations.
To help measure our success we have introduced a
customer service charter.
The integration of our business in Northern Ireland is
making good progress, we still have more investment
to make in the warehouse facilities, and this will remain
a focus. We have now successfully completed the
purchase of the site in Dublin, and we are in the process
of refocusing the business on a wider opportunity across
the region. Both businesses have been rebranded and
are now trading under the James Latham banner.
Our investments in further processing timber at
Dresser Mouldings has reduced lead times and
improved service levels opening up new opportunities
for business from our timber trading depots.
JAMES LATHAM PLC ANNUAL REPORT 2024
29
Operating Review
Strategic Report
Machining Timber at Dresser Mouldings.
Discussions during the Egger 24+ product launch roadshow.
Our products are used in both the public and private
sectors. Our top ten customers account for 9% (2023: 8%)
of sales and our top 25 customers represent 14%
(2023: 14%) of sales.
Market place
Market sector
Customer group Lathams
sales value %
2024
2023
Construction/
Merchants
15
15
housing
Joiners
25
26
Builders
4
4
Kitchen manufacturers
6
6
Door manufacturers
4
4
Retail
Shopfitters
3
4
Laminators/Veneerers
4
4
Furniture manufacturers
6
6
Transport
Vehicle builders/Van liners
2
2
Exhibitions
Exhibition fitters
2
2
Cash sales
9
10
Other importers
6
7
Other sectors
14
10
TOTAL
100
100
We have launched our Latham Academy creating
a career development platform along with several
other training and personal development initiatives
across all areas of the business enabling the company
to broaden the depth of experience and develop
stronger teams.
We continue to focus on digital marketing, expanding
our video library, and social media coverage. Linked
to this we have revamped our marketing websites
which have continued to record increased activity.
The Timber Carbon story features heavily in our
marketing effort.
For management purposes, the group is organised
into one trading entity, importing and distribution of
wood based and related materials, carried out in each
of the fifteen locations trading in the United Kingdom
and the Republic of Ireland. Within this one segment
performance in terms of revenue and trading margin
of the main product types are considered below.
The separate segment of timber processing, through
Dresser Mouldings, is considered immaterial and not
separately disclosed.
The group’s strategy continues to be to target
specific market sectors on both added value, core
and premium grade product and to provide product
solutions for our customers.
Operating Review
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
30
Customers visiting our new Hemel Hempstead showroom.
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
31
Financial review
A commentary on the group’s trading results is set
out in the Operating Review on pages 29 to 30, and the
key figures are considered below, with emphasis on
the financial performance.
Revenue Analysis
After three years where the impact of the COVID-19
pandemic and resultant supply chain disruption
had a significant positive effect on our revenues, this
year saw a return to more normal market conditions.
In this financial year, the impact of high interest rates
and inflation has dampened demand, and customers
have moved more to lower value, more cost effective,
products. Revenues are down -10.2% on a like for like
basis against the year to 31 March 2023. Cost prices on
average were 3.4% lower than in the previous financial
year, giving up some of the increases of previous years.
Volumes remained stable despite the more challenging
macroeconomic conditions. The change in product
mix in some areas to lower value products has had the
biggest effect on revenues in this financial year.
David Dunmow
Finance Director and Company Secretary
Operating profit
The board remained focussed on managing margins
to enable us to remain competitive in commodity
products but grow margins in our focus products and
other products where there were market shortages,
whilst still maintaining our service levels. Gross profit
percentage has reduced to 16.9% from 19.6%. The effect
of the change in product mix towards lower cost and
margin products, and the more competitive market
environment has caused margins to drop slightly below
our long term average.
Warehouse costs, which are included in the calculation
of gross profit, have received continued investment in
racking systems and manpower to extend the working
day to meet customer demands and improve service
levels. Nine depots are now operating a 24 hour system
during the working week, meaning we can take orders
later in the day to provide next day deliveries where
our customers require it. It also provides opportunities
to receive goods in during the night from suppliers or
from other depots.
Costs in each location are monitored closely by the board
through the quarterly meetings at each depot, with
detailed variance analyses being provided. We constantly
look for efficiencies in our overheads whilst continuing
to invest for the future. Transport and warehouse costs
per tonne have increased by 0.5% (2023: increased by
11.7%) and 7.1% (2023: increased by 13.1%) respectively.
It is pleasing to see this slowing of the increase in costs
per tonne, especially considering the increases seen
in the national minimum wage, and the high inflation
seen for much of the year.
Operating profit reduced to £26.1m from £43.7m last
year. Group net profit before taxation reduced to £30.3m
from £44.5m last year.
Revenue Growth Analysis
Volume
-0.2%
+5.3%
Price and Product Mix
-10.0%
-0.3%
Like for Like Revenue Growth
-10.2%
+5.0%
Acquisitions
-
+1.4%
Trading Days
-
-0.4%
Total Revenue Growth
-10.2%
+6.0%
2023
2024
Half Yearly Revenue Analysis
Half 1
-10.3%
+9.7%
Half 2
-10.2%
+2.2%
2023 vs 2022
2024 vs 2023
Financial Review
Taxation
Our strategy in managing and controlling our tax
affairs is to ensure compliance with all applicable
rules, legislation and regulations under which we
operate. We maintain an open and co-operative
relationship with the UK and Irish Tax Authorities,
and pay the correct amount of tax as it falls due.
Our tax strategy document is available on the
James Latham plc Investor page under Corporate
Governance.
The taxation charge of £7.6m represents an effective
rate of 25.1%, compared with 19.3% last year. The group’s
profits arise mainly in the UK and the group’s tax
charge will reflect the UK corporation tax rate, currently
25.0% having risen from 19% on 1 April 2023.
Earnings per share
The group reported a total profit after tax of £22.7m
(2023: £35.9m) resulting in a basic earnings per share
of 112.7p (2023: 179.5p) with diluted earnings per share
being 112.6p (2023: 179.2p). To put these results into
context, this is the third highest profit the group has
ever recorded.
Pension scheme
At 31 March 2024 there was a surplus in the defined
benefit scheme under International Financial Reporting
Standards of £15.9m compared with a surplus of
£7.2m last year. Interest rates have remained at the
highest levels seen for many years, and this had a
corresponding effect on discount rates, represented
by yields on corporate bonds which increased to 4.9%
from 4.7%. This helped reduce the valuation of pension
scheme liabilities by £3.4m. Assets under management
have increased by £2.0m to £68.4m due to good
returns from growth assets in the portfolio. The trustees
have reduced the amounts invested in growth assets
in order to reduce the risk in the scheme.
The triennial valuation as at 31 March 2023 has been
concluded during the year, which has shown a surplus
of £10.0m at a funding rate of 118%. The company has
paid in £2.0m of deficit recovery funding during the
year. Due to the surplus in the scheme, the deficit
recovery payments have now ceased and the group
is taking a contribution holiday until the next triennial
valuation. In note 20.2 to the accounts, we have
provided some sensitivity analysis around the various
assumptions used to illustrate this volatility, and details
of the IFRIC 14 liability on a potential tax liability on the
pension scheme surplus.
Cash flow and working capital
At the end of the year cash balances of £75.9m were
held, up from £62.6m last year. The cash is being
held as short term deposits providing funds for short
term working capital fluctuations and allowing us to
make capital investments when opportunities arise.
The free cash flow, defined as per the table below,
remains strong The board recognise that these levels
of cash are significant now and actively review cash
flows against anticipated investment plans over the
medium term.
Free Cash Flow
Operating Profit
26,143
43,698
Depreciation and other
non cash movements
2,266
42
Change in working capital
1,154 (1,256)
Net interest received
3,512 769
Tax paid (5,943) (7,498)
Operating cash flow
27,132
35,755
Fixed Asset additions
less disposals (5,528) (3,232)
Free cash flow
21,604
32,523
2023
’000’s
2024
’000’s
Financial Review
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
32
IAS19 surplus/deficit £000’s
2020
11,812
2021
5,933
2022
1,119
2023
7,221
2024
15,864
Strategic Report
Financial Review
JAMES LATHAM PLC ANNUAL REPORT 2024
33
With interest rates remaining high during the year,
we have received more interest on our cash deposits,
earning £3,560,000 this year compared with £822,000 in
the previous financial year. We have also continued to
use our cash to obtain cash settlement terms with most
of our major suppliers allowing us to earn £2,519,000 of
discounts received compared with £2,795,000 last year.
Cash and Cash Equivalents
2020
16,950
2021
28,618
2022
37,030
2023
62,609
Trade receivables have reduced to £58.7m (2023: £61.4m),
with the provision for impairment up to £308,000 from
£200,000. Control of cash flow from customers is closely
monitored as an indicator of the health of the markets
that we trade in. The key performance indicator of
average debtors days, taking into account our credit
terms, is relatively unchanged at 49.6 days compared
with 49.9 days in the previous financial year. Bad debts
this year were 0.11% against a budget of 0.4%, and 0.06%
last year. In times of increasing pressure on business
with interest rises and high inflation, this demonstrates
the strength of our customer base. We work very closely
with our credit insurers to ensure that as many of our
major accounts as possible are covered. At the year
end we had 93.8% (2023: 96.0%) of accounts owing over
£40,000 covered by credit insurance.
Inventories have further reduced to £61.7m (2023:
£67.5m), although volumes have increased slightly from
75,000m3 to 76,000m3. Stock turnover targets are set
and monitored on a monthly basis. Senior management
and all staff responsible for product areas have access
to real time stock levels and targets. Our Supply Chain
Team work with our suppliers to strengthen our supply
chain and ensure we have inventory available when
required by our customers. At 31 March 2024 stock
turn based on volumes is 6.2 times (2023: 6.3 times)
compared with our target of 6.5 times. There were no
significant overstocked areas giving any concern to us
at the year end, and stocks remained stable and well
controlled throughout the year.
Capital investment
We invested €2.4m in purchasing the long leasehold
of the site in Dublin. This allows us increase the
warehouse and office space at this depot, and continue
to develop our business in the Republic of Ireland. We
also invested £0.2m on adding a canopy extension to
our Leeds depot and £0.1m on refurbishing our Purfleet
depot. We invested £2.8m (2023: £0.8m) on the cyclical
replacement of lorries and Combilift plant.
We undertook a major IT task this year in replacing
our ERP system which enables us to take advantage
of new technologies going forward. The first of these
new technologies we are looking to introduce is a
warehouse management system, which is planned
to be installed in our first depot in early 2025. We
have invested £0.1m in putting wifi into two of our
warehouses to facilitate this project, which will make
picking and identification of product a more efficient
and accurate process. I am extremely grateful to my
IT team who planned and managed a near seamless
transition between systems, and the work involved in
this cannot be underestimated.
Morchella Restaurant, Clerkenwell
They say the Devil is in the Detail, and this
certainly rings true in Parker & Co’s fit-out of the
Morchella restaurant in Clerkenwell, London.
Using diverse selection of our materials, from
solid oak and oak veneers to HI-Macs® solid
surfaces, Tim Parker’s team showcased a series
of intricate joinery skills, from laminating and
thermoforming, to these exquisite cutlery drawers,
hidden within the counters and tabletops.
2024
75,881
Net assets at the year end were £215.2m (2023: £195.6m).
The group’s pre-tax return on capital (defined as
operating profit divided by net shareholders funds
plus non current liabilities less non current pensions
surplus and deferred tax) for the year was 12.1% (2023
21.7%). Whilst this is much reduced from last year, it has
returned to the average return on capital that we were
achieving prior to 2021, and is also affected by the cash
balances which are earning base rate returns.
Financial risk management
In the course of our business, the group is exposed
to currency risk, interest rate risk, liquidity risk and
credit risk. The overall aim of the group’s financial risk
management strategy is to mitigate any potential
negative effects on the group’s assets and profitability.
The group manages these risks in accordance with
group policies.
As the group trades predominantly in the UK and
Ireland, the market price of our products tends to
fluctuate in line with currency spot prices. Speculative
positions on currencies are not entered into. Our
LDT division can have stock tied up in kilns for six
to nine months. We will enter into forward currency
agreements to cover where customers are quoted a
particular exchange rate.
The cash deposits and available bank facilities reduce
our liquidity risk. Cash flow forecasts are monitored
against actual cash flows to ensure that adequate
facilities are maintained to meet the future needs of the
business. The board reviews re-forecasted profits and
cash flows on a quarterly basis.
Insurance products and external credit reference
agencies help reduce our credit risk.
The Audit Committee reviews the group’s risk register
as part of its regular monitoring process.
I am very grateful for all the work that all my Head
Office team has put in this year. They have embraced
the new ERP system and have continued to provide a
first class service to our customers and suppliers and to
our depots.
David Dunmow
Finance Director
Valchromat in Ottolenghi Test Kitchen by Studiomama.
Financial Review
Strategic Report
JAMES LATHAM PLC ANNUAL REPORT 2024
34
Corporate Governance
Corporate Governance Report
JAMES LATHAM PLC ANNUAL REPORT 2024
35
I believe that good corporate governance, involving
risk appraisal and management, prudent decision
making, communication with shareholders and other
stakeholders and business efficiency, is important for the
long term benefit of the stakeholders in our group. Good
corporate governance guides the overall group strategy,
and considers the risks and opportunities we face in
considering the future success of the business.
As a board we have considered the 10 Principles of
Corporate Governance contained within the Quoted
Companies Alliance Corporate Governance Code 2018,
and show below how we have applied these principles.
I am responsible for ensuring that the group conducts
its business paying due regard to each of the 10
principles. These principles have been communicated
to the rest of the board through training and discussion
at board meetings, and each board member is
responsible for ensuring that the message passes down
to all our employees. I also regularly visit our depots to
ensure these principles are understood and maintained.
The 10 Principles are split into three areas, Deliver
Growth, Maintain a Dynamic Management Framework
and Build Trust. I can confirm that we have complied
with all the Principles throughout the year.
The four Principles on Delivering Growth are considered
within the Strategic Report starting on page 4.
MAINTAIN A DYNAMIC MANAGEMENT
FRAMEWORK
Principle 5 – Maintain the board as a well-
functioning, balanced team led by the chair.
The Board of Directors
The company is currently governed by a board of
directors consisting of myself as Chairman, three
executive directors and two non-executive directors.
Each director has a vote and no individual or small group
of individuals dominates the board’s decision making.
There were no changes to the board during the year.
In the year to 31 March 2024, the board met 6 times,
with all directors attending each meeting. The board
meetings were held via a mixture of in person meetings
and video conferencing which are just as effective as
face to face meetings. In addition conference calls
are held where matters which cannot wait for the
next board meeting can be discussed. This included
a strategy meeting where we looked forward for the
next five years to consider investment plans and risks.
In addition the executive directors have a monthly
conference call to discuss the monthly management
accounts and other matters of importance.
The non-executive directors are Fabian French and
Paula Kerrigan. I consider that all non-executives are
independent, as I consider that three terms of three
years is the maximum amount of time that a non-
executive director can serve before their independence
is impaired. Fabian French is approaching the end of
his third term of three years. I am very grateful for the
good advice and counsel given to both me and the
board during his tenure. We are actively looking for a
new non executive director, and Fabian will continue
for a year following this appointment to assist in their
integration to the board. In addition to the scheduled
meetings, the non-executives attend the group annual
operational budget and strategy meeting, as well as
making individual visits to operational sites, and assist
in mentoring some key employees. Each non executive
director is expected to give a time commitment of at
least 12 days a year.
Principle 6 – Ensure that between them
the directors have the necessary up-to-date
experience, skills and capabilities.
The directors’ biographies are shown on page 39. Each
executive director has many years experience within
the James Latham Group at all levels. Each director
has agreed responsibilities on the board, covering all
aspects of the businesses including sales, procurement,
operations, finance, HR and IT. As well as responsibilities
to the plc board, Andrew Wright and Piers Latham are
actively involved in the running of the Lathams Limited
and Abbey Wood Agencies Limited business, the
company’s trading subsidiaries. All directors keep their
skill sets up to date by training, discussions on market
trends with customers and suppliers, involvement with
trade and environmental organisations, and working
closely with our IT, pensions and HR advisors. I believe
the board works well together, challenging each other
to constantly improve and move forward.
Principle 7 – Evaluate board performance
based on clear and relevant objectives,
seeking continuous improvement.
Each director has a detailed job description showing
their responsibilities on the board. I have regular
meetings with each director to discuss the progress
in the areas they are responsible for, and consider
whether any further development or mentoring needs
are necessary. Each director is subject to the formal
appraisal process used throughout the group, and my
appraisal is performed by the non-executive directors.
As a board we periodically review the running of the
board, led by the non executive directors, to consider
the effectiveness of the board and whether there are
any gaps in skills on the board. This is mainly on an
ad-hoc basis where major decisions are being made to
ensure that the board has the skills to make informed
judgements. Succession planning is key so that no
member of the board becomes indispensable.
Principle 8 – Promote a corporate culture that
is based on ethical values and behaviours.
Our core values are Integrity,
Shareholder Value, Empowerment,
Sustainability and Customer Focus.
The company and the Latham
brand is well respected in its
industry and amongst its customers
and suppliers for its principled
trading policies and its integrity.
As such it is important for us to
have a corporate culture based
on these ethical values and behaviours. The annual
report contains reports on corporate responsibility
including environmental, health and safety, audit and
remuneration committee reports and reports
on our attitudes to risk.
The board regularly visit the depots to ensure that our
core values are understood and are an integral part
of depot life. The core values are actively promoted so
that we maintain our culture of ethical, sustainable and
safe working to achieve a fully inclusive, engaged and
healthy workforce, and are an important part of the
annual appraisal process.
Principle 9 – Maintain governance structures
and processes that are fit for purpose and
support good decision-making by the board.
The board has a formal schedule of matters referred to it
for decision, with at least one specific strategy meeting
being held each year. Agendas and board packs are
discussed and circulated in advance of the meetings to
ensure that all directors have adequate time to research
and take part in discussions on the key issues, as well as
giving the non-executive directors time to add matters
of their particular interest to the agenda.
The board is responsible for group strategy, corporate
responsibility including health and safety and
environmental issues, acquisition policy, bribery policy,
approval of major capital expenditure and monitoring
the key operational and financial risks. It also reviews
the strategy and budgets for the trading subsidiaries
and monitors the progress towards their long term
objectives. All directors have access to the company
secretary or to independent professional advice, if
required, at the company’s expense.
New directors receive training from the company
NOMAD on their responsibilities under the AIM rules.
Key financial information is circulated to directors on a
monthly basis outside of the board meetings.
The board has decided that the directors will retire by
rotation and the executive directors will be re-elected
at least every three years.
Corporate Governance Report
Corporate Governance
JAMES LATHAM PLC ANNUAL REPORT 2024
36
Curved fronts in Oak Veneered MDF.
The Audit Committee
The members of the Audit Committee are Fabian
French, as Chair, and Paula Kerrigan. Andrew Wright
and David Dunmow also attend the meetings of the
committee. The committee meets at least three times
a year to review internal controls and the risk register
within the group, and receive reports from the external
auditors and reports of internal audit tests carried out
during the year. The duties of the Audit Committee
include, on behalf of the board, a review of effectiveness
of the group’s financial reporting and internal control
policies, and procedures for the identification,
assessment and reporting of risk.
It also keeps under review the scope and results
of the external audit, its cost effectiveness and the
independence and objectivity of the external auditor,
including recommending their re-appointment to
the board. This includes a review of the non-audit
work performed to ensure that such work would not
impair their independence or objectivity in carrying
out the audit.
Once a year the auditor meets with the non-executive
directors only.
The group has established procedures whereby
employees of the group may, in confidence, raise
concerns relating to matters of potential fraud or
other improprieties. These procedures also cover
other issues affecting employees including health and
safety issues. The Audit Committee is confident that
these ‘whistleblowing’ arrangements are satisfactory
and will enable the proportionate and independent
investigation of such matters and appropriate follow-up
action to be taken.
Remuneration and Nominations Committee
The Remuneration and Nominations Committee,
which meets twice a year, comprises Paula Kerrigan as
Chair and Fabian French. The meetings were attended
by Nick Latham and David Dunmow who provide
information to the Committee when required.
The main function of the Committee is to make
recommendations to the board regarding the
group’s policy on the remuneration and conditions of
employment of the executive directors of the group,
and, where appropriate, senior management, and
includes considering nominations to the board. The
Committee also discussed group pay and employment
policy including reviewing diversity and equality, the
gender pay gap report and succession planning.
The Committee has access to professional remuneration
advice from outside of the company.
The Remuneration and Nominations Committee report
is contained on page 40.
WoodEx engineered timber joinery at Corfe Castle.
Corporate Governance
Corporate Governance Report
JAMES LATHAM PLC ANNUAL REPORT 2024
37
BUILD TRUST
Principle 10 – Communicate how the
company is governed and is performing by
maintaining a dialogue with shareholders
and other relevant stakeholders.
We were pleased to welcome shareholders to the
2023 AGM in the Holiday Inn, Breakspear Way, Hemel
Hempstead, adjacent to our new Head Office. This
years AGM will be held on the 21 August 2024 at the
same location.
The directors have a commitment to best practice
in the group’s external financial reporting in order to
present a balanced and comprehensive assessment
of the group’s financial position and prospects to its
shareholders, employees, customers, suppliers and
other third parties. This commitment encompasses
all published information including but not limited to
the year end and half yearly accounts, regulatory news
announcements and other public information.
The published annual report contain reports of the
Audit and Remuneration and Nomination Committees.
The published information is held on our investor
website at www.lathamtimber.co.uk.
Procedures for identifying, quantifying and managing
the risks, financial or otherwise, faced by the group
have been in place throughout the year under review.
The processes for identifying and managing the key
risks to the business are communicated regularly to
all staff, who are made aware of the areas for which
they are responsible. Such processes include strategic
planning, maintenance and review of a risk register, the
appointment of appropriately qualified staff, regular
reporting and monitoring of performance against
budgets and other performance targets, and effective
control over capital expenditure.
The board has established systems of internal control
as appropriate for the size of the group. The day to day
operation of the system of internal control is under the
control of executive directors and senior management.
The system is designed to manage rather than eliminate
risk. Any system of internal control can however only
provide reasonable, but not absolute, assurance against
material misstatement and loss. No material breaches of
internal controls were reported during the year.
The directors confirm that they have reviewed the
effectiveness of the system of internal control for the
year under review and to the date of approval of the
Annual Report and Accounts through the monitoring
process described above.
Nick Latham, Chairman
8 July 2024
Iroko garden screen by The Garden Trellis Co Ltd.
Corporate Governance Report
Corporate Governance
JAMES LATHAM PLC ANNUAL REPORT 2024
38
Nick Latham BSc Chairman
Nick Latham, age 56 has worked in the
company for 32 years and was appointed to
the board in 2007. He is responsible for Group
Strategy, leading the board and ensuring its
effective working. He provides advice to the
Remuneration Committee. He is a board
director of Timber Development UK (TDUK)
and a former director of the Timber Research
and Development Association.
David Dunmow BSc FCA
Finance Director and Company Secretary
David Dunmow, age 60, has worked in the
company for 30 years and was appointed
to the board as Finance Director in 2000.
He is a Fellow of the Institute of Chartered
Accountants in England and Wales. He is
responsible for Head Office finance functions
and IT and communications strategy. He is
a director of Abbey Wood Agencies Limited,
and provides advice to the Audit and
Remuneration Committees. He is a former
treasurer of the Timber Trade Federation. He
is a Trustee of the James Latham plc Pension
and Assurance Scheme.
Andrew Wright Managing Director
Andrew Wright, age 59, has worked in the
company for 23 years and was appointed to
the board in 2015. He is Managing Director,
chairing the Lathams Limited board, and is
responsible for sales and purchasing strategy
and marketing. He also provides advice to the
Audit Committee.
Piers Latham BSc Executive Director
Piers Latham, age 53 has worked in the
company for 31 years and was appointed to the
board in 2014. He is responsible for Operations,
HR and Environmental, Social and Governance
matters. He is a director of Lathams Limited,
and Chairman of the Trustees of the James
Latham plc Pension and Assurance Scheme.
Fabian French MA Non-Executive Director
Fabian French, age 65, was appointed a non-
executive director in 2015. He chairs the Audit
Committee and sits on the Remuneration
and Nominations committee. He is a qualified
solicitor and worked in corporate finance
for major investment banks. He is a director
of CCRTM Ltd, St. George’s School Windsor,
Royal Yacht Squadron Ltd and Trebartha
Hydro Ltd, and is a previous director of
Mithras Investment Trust plc.
Paula Kerrigan Non-Executive Director
Paula Kerrigan, age 52, was appointed a
non-executive director in 2017. She has a
wide variety of public company experience
across multiple sectors. She sits on the Audit
Committee and chairs the Remuneration and
Nominations Committee. She has previously
held C-suite operations, strategy and
transformation roles at Saga plc, Greene King,
SuperGroup plc and the Co-operative Group.
Prior to that she spent 15 years at Kingfisher
plc where she held a variety of roles including
Finance and Strategy Director for B&Q in
Asia and Delivering Value Director for B&Q in
the UK.
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Breakspear Way
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Directors’ biographies
Paula Kerrigan
David Dunmow
Nick Latham
Piers Latham
Fabian French
Andrew Wright
Corporate Governance
Directors and Advisors
JAMES LATHAM PLC ANNUAL REPORT 2024
39
Directors’ Remuneration Report
Corporate Governance
JAMES LATHAM PLC ANNUAL REPORT 2024
40
As Chairman of the Remuneration and Nominations
Committee I am pleased to present the Directors
Remuneration report.
This year inflation has remained high and cost of living
pressures continued to affect colleagues from all around
the group. We understand that we need to balance
the need to control costs with the need to support our
hard working and loyal workforce. Without their loyalty
and hard work we would not have been able to achieve
the results that we have, in a market that has proved
challenging.
We pay the Real Living Wage which increased from
£10.90 per hour to £12 per hour during the year, an
increase of 10%. In addition to making these increases,
we also considered the impact that this had on the
salaries of those who are paid at slightly higher rates,
to ensure that we maintained the differential for more
senior and responsible jobs.
Pay rises for group employees are considered once
a year, to apply from 1 December. The Remuneration
Committee sets an overall maximum percentage pay
rise, based on cost of living increases plus awards for
promotion where relevant. This year the overall pay
increase was 6.4%. The executive directors have their pay
rises based on the same criteria as all other employees.
We also make other benefits available to all staff,
including cash plans which help with covering medical
expenses such as dental and optical, discounts on
a range of resources to help well being, and make
available an employee assistance programme, with
confidential helplines for stress, financial and other
medical issues.
Remuneration Policy
The remuneration policy aims to ensure that all staff
are fairly rewarded for their individual contributions to
the performance of the group, with due regard for the
interests of shareholders in achieving long term growth
for the company. When setting individual pay, we look
at their role and where it sits in the James Latham
structure, undertake benchmarking exercises to review
the external market, and review internally with others of
equivalent roles to ensure equality across the group.
The directors remuneration package consists of
basic salary, benefits (comprising car, private medical
provision and cash plan benefits), pensions, annual
bonus schemes, share option schemes and life
assurance cover of 4 times gross salary.
Performance related bonuses
All staff have the opportunity to earn a bonus based
on the performance targets of their individual profit
centres, which in the main reflect the performance of
the individual depot that they work in. The challenging
market conditions meant that this year most depots did
not achieve sufficient profits to earn a bonus.
The performance related bonuses earned by executive
directors are measured on the achievement of the
sum of the individual profit centre’s targets. These
performance targets are set by the group’s board of
directors and agreed by the remuneration committee.
The criterion on which the executive directors’
bonuses were based in 2024 was the achievement of
£29,388,000 operating profit, as measured in the depots
management accounts. Maximum bonuses of 39.5%
of basic salary are paid on achieving 130% of the target
operating profit. The minimum bonus level is 1.3% paid
on achieving 90% of target operating profit, below which
nothing is earned. This year 92.0% of the target operating
profit was achieved earning 1.3% of basic salary.
In addition to the performance related targets, a
Group Bonus scheme pays out a bonus to all eligible
members of staff, subject to achieving a minimum level
of group profits. Whilst most depots did not achieve
their targets, we have still achieved our third best year
of profitability ever, and the Group Bonus is a way of
rewarding the work of all staff who contributed towards
this profit. This year the scheme is paying 9.62% of basic
salary to 562 eligible employees.
None of the bonus schemes applicable to directors are
affected by share price appreciation or depreciation.
The directors participate in the company share option
schemes, and details of any gains made on options
exercised during the year are shown on pages 41 to 42.
Corporate Governance
Directors’ Remuneration Report
JAMES LATHAM PLC ANNUAL REPORT 2024
41
Review of past performance
The graph below shows the company’s total shareholder return performance against the total shareholder return
performance of the AIM All Share Index for the five years ended 31 March 2024.
James Latham Plc
FTSE AIM All
Share Index
-20
0
60
80
20
40
2019
2021
2022
2024
2020
2023
James Latham plc total shareholder return
The Remuneration
Committee consider this
to be the most appropriate
graph against which to
compare the company’s
performance.
Pension Scheme
The James Latham plc Pension and Assurance Scheme,
which is a final salary scheme, was closed to new
entrants in 2003 and there remain 23 employees still
accruing benefits in 2024. All other staff are eligible to
join the defined contribution scheme which matches
employee contributions up to 7.5%.
The executive directors are all members of the James
Latham plc Pension and Assurance Scheme final salary
scheme. The directors are required to contribute 8% of
pensionable salary.
Service Contracts
Following a review by the board of directors in 1996,
the service contracts of executive directors were
amended to incorporate a rolling 2 year notice period.
This was considered by the board of directors to be a
significant but reasonable reduction in their original 5
year contracts. In 2004, the directors agreed that any
service contracts issued to new directors would be
subject to a minimum 6 month notice period.
Executive director’s contracts have no provisions for
pre-determined compensation on termination that
exceeds two years salary and benefits in kind.
Remuneration of the non-executive directors
The remuneration of the non-executive directors is
determined by the board. The non-executive directors do
not receive a pension or other benefits from the group.
Accoya Cladding at Dublin City Council operations depot.
Directors’ shareholdings
There were no contracts with the company or its subsidiaries during the year in which any of the directors had a
material interest, other than their service contracts. The directors’ holdings of the share capital at the end of the
financial year were as follows:
648,400
-
646,082
-
145,471
-
143,670
-
645,135
567
642,956
567
33,064
-
31,866
-
370,052
5,088
370,052
5,088
-
-
-
-
N.C. Latham
Beneficial owner
D.A. Dunmow
Beneficial owner
P.F. Latham
Beneficial owner
A.G. Wright
Beneficial owner
P.L.F. French
Beneficial owner
P. Kerrigan
Beneficial owner
Ordinary shares
31 March 2023
Preference shares
Ordinary shares
31 March 2024
Preference shares
Directors
Directors’ Remuneration Report
Corporate Governance
JAMES LATHAM PLC ANNUAL REPORT 2024
42
Directors’ emoluments
Details of the individual directors’ emoluments for the year were as follows:
Salary
and fees
250
236
219
207
212
200
216
203
41
39
41
39
979
924
1
1
7
7
1
1
3
2
-
-
-
-
12
11
28
113
25
102
23
95
25
102
-
-
-
-
101
412
279
350
251
316
236
296
244
307
41
39
41
39
1,092
1,347
Benefits
Bonus
Total
emoluments
excluding
pensions
Executive
N.C. Latham
2024
2023
D.A. Dunmow
2024
2023
P.F. Latham
2024
2023
A.G. Wright
2024
2023
Non-executive
P.L.F. French
2024
2023
P. Kerrigan
2024
2023
Total
2023
£000
Pension
contributions
56
56
74
76
47
46
52
52
-
-
-
-
229
230
£000
TOTAL
336
409
326
395
284
345
328
385
41
39
41
39
1,356
1,612
£000
£000
£000
£000
1
3
1
3
1
3
32
26
-
-
-
-
35
35
Share
based
payments
£000
Company Share Option Scheme
Participation by the directors in the James Latham plc Approved Company Share Option Scheme 2008 is as follows:
Outstanding
1 April 2023
718
466
486
357
360
-
718
466
486
357
360
-
718
466
486
357
360
-
718
466
486
357
360
-
-
-
-
-
-
500
-
-
-
-
-
500
-
-
-
-
-
500
-
-
-
-
-
500
-
466
486
357
360
500
-
466
486
357
360
500
-
466
486
357
360
500
-
466
486
357
360
500
£6.26
£9.65
£9.25
£12.60
£12.50
£12.01
£6.26
£9.65
£9.25
£12.60
£12.50
£12.01
£6.26
£9.65
£9.25
£12.60
£12.50
£12.01
£6.26
£9.65
£9.25
£12.60
£12.50
£12.01
Granted during
the year
Outstanding
31 March 2024
Exercise
price
N.C. Latham
D.A. Dunmow
P.F. Latham
A.G. Wright
Exercise period
03.01.24 to 02.01.29
23.12.24 to 22.12.29
16.12.25 to 15.12.30
11.12.26 to 10.12.31
20.12.27 to 19.12.32
22.12.28 to 21.12.33
03.01.24 to 02.01.29
23.12.24 to 22.12.29
16.12.25 to 15.12.30
11.12.26 to 10.12.31
20.12.27 to 19.12.32
22.12.28 to 21.12.33
03.01.24 to 02.01.29
23.12.24 to 22.12.29
16.12.25 to 15.12.30
11.12.26 to 10.12.31
20.12.27 to 19.12.32
22.12.28 to 21.12.33
03.01.24 to 02.01.29
23.12.24 to 22.12.29
16.12.25 to 15.12.30
11.12.26 to 10.12.31
20.12.27 to 19.12.32
22.12.28 to 21.12.33
(718)
-
-
-
-
-
(718)
-
-
-
-
-
(718)
-
-
-
-
-
(718)
-
-
-
-
-
Exercised
These options will only be exercised if the share price during the exercise period is in excess of the exercise price.
Mr N.C. Latham, Mr D.A. Dunmow and Mr P.F. Latham made a gain of £3,942 and Mr A.G. Wright made a gain of £4,121
on options exercised during the year.
Corporate Governance
Directors’ Remuneration Report
JAMES LATHAM PLC ANNUAL REPORT 2024
43
Deferred Share Bonus Plan
Participation by the directors in the James Latham plc Deferred Share Bonus Plan is as follows:
Outstanding
1 April 2023
3,363
111
3,474
nil
Awarded
during the year
Outstanding
31 March 2024
Exercise
price
A.G. Wright
Vesting
date
01.04.2024
-
Exercised
£9.15
Award
price
Paula Kerrigan,
Chairman of the Remuneration Committee
8 July 2024
No performance conditions or voting rights apply to these shares, but dividends will be reinvested into additional
shares in the plan.
2,573
85
2,658
nil
01.04.2025
-
£12.15
-
2,763
2,763
nil
01.04.2026
-
£12.10
The directors have pleasure in presenting their
annual report and the audited accounts for the year
ended 31 March 2024. In accordance with section
414c(11) of the Companies Act 2006, included in
the Strategic Review is the review of financial risk
management, future developments, carbon emission
disclosures, employee policies and engagement policies
with suppliers, customers and other stakeholders.
This information would have been required by section
7 of the Large and Medium sized Companies and
Groups (Accounts and Reports) Regulations 2008 to
be contained in the Directors Report.
Results and dividends
Group results for the year ended 31 March 2024 are
set out on page 53. The directors recommend the
following dividends:-
Ordinary dividends
£000
Interim dividend paid, 7.75 pence
(2023: 7.25 pence) per ordinary share
1,559
Final dividend proposed, 71.0 pence
(2023: 28.8 pence) per ordinary share
14,314
Total ordinary dividends, 78.75 pence
(2023: 36.05 pence) per ordinary share
15,873
The directors recommend payment of the final dividend
on 23 August 2024 to shareholders on the register of
members at the close of business on 2 August 2024.
Balance sheet and post balance sheet events
The balance sheet on page 54 shows the group’s
financial position. No significant events have occurred
since the balance sheet date.
Directors
All directors of the company were directors throughout
the year. Each director’s biographical details are shown
on page 39.
In compliance with the Articles of Association,
Fabian French, Paula Kerrigan, David Dunmow and
Andrew Wright will retire by rotation and, being
eligible, offer themselves for re-election.
Other than their service contracts, no director
has a material interest in any contract with the
company. Fabian French and Paula Kerrigan, as non-
executive directors, do not have a service contract
with the company, but each has received a letter of
appointment for a three year period. Details of directors’
emoluments, pension rights, service contracts and
the directors’ interests in the ordinary shares of the
company are included in the Directors’ Remuneration
Report on pages 40 to 43.
Article 168 of the company’s Articles of Association gives
the directors and officers of the company a right to be
indemnified out of the assets of the company in respect
of any liability incurred in relation to the affairs of the
group to the extent the law allows.
The company has undertaken to comply with best
practice on approval of directors’ conflicts of interest.
Under the Companies Act 2006 a director must avoid
a situation where there is, or can be, an interest that
may conflict with the company’s interests. None of the
directors had an interest in any contract to which the
group was a party during the year.
The company maintained directors’ and officers’ liability
insurance cover throughout the year.
Share capital
Details of the share capital is shown in Note 21.
Resolutions concerning the ability of the board to
purchase the company’s own shares and to allot shares
and to dis-apply pre-emption rights are again being
proposed at the Annual General Meeting.
The investment in own shares is detailed in Note 23
on page 85. During the year, the company purchased
5,000 £1 preference shares at £1.15 a share and now
holds 5,208 preference shares in treasury. In addition
the Trustees of the James Latham Employee Benefits
Trust holds 35,084 shares with a view to being used for
employee share schemes.
Directors’ Report
Corporate Governance
JAMES LATHAM PLC ANNUAL REPORT 2024
44
Share option schemes
On 21 August 2008, the shareholders approved by
special resolution the establishment of the Company
Share Option Scheme. During the year 20,250 options
were issued at an option price of £12.01. In addition
12,699 options were exercised after being held for five
years, 560 at an option price of £8.025 and 12,139 at an
option price of £6.26.
In addition 2,763 shares were awarded under the
Deferred Bonus Scheme 2010 at nil price to be
exercised after 3 years.
Employees
The strategic report on page 4 and 14 sets out the
group’s communication policies with our employees
and our policy towards disability. This report shows
how the directors engage with the group’s employees,
have regard to their interests and encourage them to
contribute to the development of the group’s trading
and other policies.
Substantial shareholdings
At 26 June 2024, the company had received notification
under the Disclosure Transparency Rules that
the holdings and voting rights exceeding the 3%
notification threshold were as follows:
Number
%
Peter Latham
1,216,289
6.03
Close Asset Management Ltd
1,015,112
5.04
Robert Latham
684,121
3.39
Nick Latham
648,400
3.22
Piers Latham
645,135
3.20
Suppliers
The group recognises the important part our suppliers
play in our trading success, including the development
of new products, new markets and meeting our
environmental targets. Regular meetings are held at the
highest level with our key suppliers to ensure our trading
and environmental requirements are understood and
forming strategic partnerships to develop the markets.
Operating businesses are responsible for agreeing
the terms and conditions under which business
transactions with their suppliers are conducted. The
group’s policy is to pay suppliers in accordance with
these terms. The group’s creditor days at 31 March 2024
were 33 days (2023: 33 days). Payment practices and
performance data for Lathams Limited is published
at https://check-payment-practices.service.gov.uk/
company/00967247/reports.
Corporate Governance
Directors’ Report
JAMES LATHAM PLC ANNUAL REPORT 2024
45
Selection of panel products at our Dudley depot.
Going concern
After making appropriate enquiries, the directors
have a reasonable expectation that the company and
the group have adequate resources to continue in
operational existence for the foreseeable future. The
directors confirm that the business is a going concern
and that their assessment of the going concern position
has been prepared in accordance with the Guidance on
the Going Concern Basis of Accounting and Reporting
On Solvency and Liquidity Risks published by the
Financial Reporting Council in April 2016.
In arriving at their opinion, the directors considered:-
l The group’s cash flow forecasts and revenue
projections for the period to 31 July 2025
l Sensitivity of these projections to reasonable changes
in trading conditions
l Cash and borrowing facilities available to the group
l Consideration of the principal risks and uncertainties
outlined on pages 24 to 27.
Political and charitable donations
During the year the group made no political
contributions but made direct donations to various
charitable organisations amounting to £63,079 (2023:
£44,126). The group also made small donations of
our products to a number of good causes and was
involved in fund raising activities for the Timber Trades
Benevolent Society.
Financial instruments
A summary of the group financial instruments and
related disclosures are set out in Note 27 to the group
accounts and in the Financial Review on page 34.
Provision of information to the auditor
In the case of each of the directors who are directors
of the company at the date when this report was
approved:
l So far as each of the directors is aware, there is no
relevant audit information of which the company’s
auditor is unaware; and
l Each of the directors has taken all the steps that they
ought to have taken as a director to make themselves
aware of any relevant audit information and to
establish that the company’s auditor is aware of that
information.
Auditor
A resolution to reappoint RSM UK Audit LLP as the
company’s auditor and to authorise the directors to
fix their remuneration will be proposed at the Annual
General Meeting. RSM UK Audit LLP has indicated its
willingness to continue in office.
Annual General Meeting
Shareholders receive more than 20 working days notice
of the Annual General Meeting, where directors will be
available for questions and a trading update provided.
The Annual General Meeting will be held at the
Leverstock Suite, Holiday Inn, Breakspear Way, Hemel
Hempstead, Herts, HP2 4UA on 21 August 2024 at
12.30pm. Last year all resolutions were passed with over
90% of the votes in favour.
This year the following items are to be proposed as
special business, and the board recommends that the
shareholders vote in favour of all resolutions put before
the meeting.
Resolution 8. Directors authority to allot shares. This
gives the board the power to allot ordinary shares or
other securities, up to an aggregate nominal amount of
£1,680,000 (or one third of the current ordinary shares).
Resolution 9. Dis-application of pre-emption rights.
The Companies Act 2006 provides that when ordinary
shares are being issued for cash, these shares must first
be offered to existing shareholders on a pro rata basis.
This resolution empowers the board to allot shares
not exceeding 5% of the issued share capital, without
offering to existing shareholders. The board only
anticipates using this power in conjunction with the
employee share schemes.
Resolution 10. Authority for the company to purchase
its own shares. This gives the board the power to
purchase up to 10% of the company’s shares at a price
not more than 105% of the average of the mid market
price for the ten business days preceding the date of
the purchase.
On behalf of the Board of Directors
Nick Latham
Chairman
8 July 2024
JAMES LATHAM PLC ANNUAL REPORT 2024
46
Directors’ Report
Corporate Governance
The directors are responsible for preparing the Strategic
Report, Directors Report and the financial statements in
accordance with applicable law and regulations.
Company law requires the directors to prepare group
and parent company financial statements for each
financial year. The directors have elected under
company law and are required by the AIM rules of
the London Stock Exchange to prepare the group
financial statements in accordance with UK adopted
International Accounting Standards and have elected
under company law to prepare the parent company
financial statements in accordance with UK adopted
International Accounting Standards and applicable law.
The group and parent company financial statements
are required by law and UK adopted International
Accounting Standards to present fairly the financial
position and performance of the group and the
company. The Companies Act 2006 provides in relation
to such financial statements that references in the
relevant part of that Act to financial statements giving
a true and fair view are references to their achieving a
fair presentation.
Under company law the directors must not approve
the financial statements unless they are satisfied that
they give a true and fair view of the state of affairs of the
group and the parent company and of the profit or loss
of the group for that period.
In preparing each of the group and parent company
financial statements, the directors are required to:
a. select suitable accounting policies and then apply
them consistently;
b. make judgements and accounting estimates that
are reasonable and prudent;
c. state whether they have been prepared in
accordance with UK-adopted International
Accounting Standards;
d. prepare the financial statements on the going
concern basis unless it is inappropriate to presume
that the group and the company will continue in
business.
The directors are responsible for keeping adequate
accounting records that are sufficient to show and
explain the group’s and parent company’s transactions
and disclose with reasonable accuracy at any time
the financial position of the group and the parent
company and to enable them to ensure that the
financial statements comply with the requirements
of the Companies Act 2006. They are also responsible
for safeguarding the assets of the group and the
parent company and hence for taking reasonable
steps for the prevention and detection of fraud and
other irregularities.
The directors are responsible for the maintenance and
integrity of the corporate and financial information
included on the James Latham plc Investors website,
www.lathamtimber.co.uk/Investors.
Legislation in the United Kingdom governing the
preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
On behalf of the Board of Directors
Nick Latham
Chairman
8 July 2024
JAMES LATHAM PLC ANNUAL REPORT 2024
47
Corporate Governance
Statement of Directors’ Responsibilities
Opinion
We have audited the financial statements of James
Latham plc (the ‘parent company’) and its subsidiaries
(the ‘group’) for the year ended 31 March 2024 which
comprise the Consolidated Income Statement,
Consolidated Statement of Comprehensive Income,
Consolidated and Company Balance Sheets,
Consolidated Statement of Changes in Equity, Company
Statement of Changes in Equity, Consolidated and
Company Cash Flow Statements and notes to the
financial statements, including significant accounting
policies. The financial reporting framework that has
been applied in their preparation is applicable law and
UK-adopted International Accounting Standards and,
as regards the parent company financial statements,
as applied in accordance with the provisions of the
Companies Act 2006.
In our opinion:
l the financial statements give a true and fair view of
the state of the group’s and of the parent company’s
affairs as at 31 March 2024 and of the group’s profit for
the year then ended;
l the group financial statements have been
properly prepared in accordance with UK-adopted
International Accounting Standards;
l the parent company financial statements have been
properly prepared in accordance with UK-adopted
International Accounting Standards and as applied in
accordance with the Companies Act 2006; and
l the financial statements have been prepared in
accordance with the requirements of the Companies
Act 2006.
Basis for opinion
We conducted our audit in accordance with
International Standards on Auditing (UK) (ISAs (UK))
and applicable law. Our responsibilities under those
standards are further described in the Auditor’s
responsibilities for the audit of the financial statements
section of our report. We are independent of the
group and parent company in accordance with the
ethical requirements that are relevant to our audit
of the financial statements in the UK, including the
FRC’s Ethical Standard as applied to listed entities and
we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that
the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our
professional judgment, were of most significance in
our audit of the group and parent company financial
statements of the current period and include the most
significant assessed risks of material misstatement
(whether or not due to fraud) we identified, including
those which had the greatest effect on the overall audit
strategy, the allocation of resources in the audit and
directing the efforts of the engagement team. These
matters were addressed in the context of our audit of
the group and parent company financial statements as
a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters.
Summary of our audit approach
Key audit
Group
matters
l Inventory provision: valuation
Parent company
l No key audit matters
Materiality
Group
l Overall materiality:
£1,580,000 (2023: £1,960,000)
l Performance materiality:
£1,180,000 (2023: £1,470,000)
Parent company
l Overall materiality:
£78,000 (2023: £77,700)
l Performance materiality:
£58,500 (2023: £58,200)
Scope
Our audit procedures covered
97% of revenue, 96% of total assets
and 98% of profit before tax.
To the members of James Latham plc
Independent Auditor’s Report
JAMES LATHAM PLC ANNUAL REPORT 2024
48
Inventory provision: valuation
Key audit
As set out in note 16 to the financial statements, the group carried inventory amounting to
matter
£61.7m at 31 March 2024 (2023: £67.5m) and details of the accounting policies applicable
description
during the year are set out in notes 1.10 and 1.21. Provisioning is the element of the inventory
balance which involves the highest degree of management judgement, and therefore risk of
fraud, in arriving at the year-end inventory valuation. It is this aspect of the year-end inventory
valuation that we have designated as a key audit matter as it absorbed a significant amount
of audit resource.
How the
matter was
addressed in
the audit
To audit the appropriateness of the provision against inventory, we:
l considered management’s inventory provisioning policy in the light of:
- the requirements of IAS 2 Inventories
- the market for the group’s products at the balance sheet date
- slower-moving inventory lines
l performed reliability testing on underlying inventory ageing data by testing a sample of sales
orders and inventory receipts to supporting documentation to ensure that the transactions
have been recorded accurately
l utilised data analytics to analyse the year end inventory value against post year end sales data,
taking into account the impact of purchase rebates, in order to assess the extent of inventory
lines sold at lower than cost.
Our application of materiality
When establishing our overall audit strategy, we set certain thresholds which help us to determine the nature,
timing and extent of our audit procedures. When evaluating whether the effects of misstatements, both individually
and on the financial statements as a whole, could reasonably influence the economic decisions of the users we take
into account the qualitative nature and the size of the misstatements. Based on our professional judgement, we
determined materiality as follows:
Overall materiality
£1,580,000 (2023: £1,960,000)
£78,000 (2023: £77,700)
Basis for determining
5.2% (2023: 4.4%) of profit before tax
0.3% (2023: 0.5%) of net assets
overall materiality
Rationale for
Profit measure used for the trading
Asset-based measure used for the
benchmark applied
activities of the group
parent company as it holds the
investment in subsidiaries and has no
trading activity of its own.
Performance materiality
£1,180,000 (2023: £1,470,000)
£58,500 (2023: £58,200)
Basis for determining
75% of overall materiality
75% of overall materiality
performance materiality
Reporting of
Misstatements in excess of £79,000
Misstatements in excess of £3,900
misstatements to the
and misstatements below that threshold
and misstatements below that
Audit Committee
that, in our view, warranted reporting on
threshold that, in our view, warranted
qualitative grounds.
reporting on qualitative grounds.
Group
Parent company
Independent Auditor’s Report
To the members of James Latham plc
JAMES LATHAM PLC ANNUAL REPORT 2024
49
An overview of the scope of our audit
The group consists of 17 components, based in the United Kingdom and Republic of Ireland.
Conclusions relating to going concern
In auditing the financial statements, we have
concluded that the directors’ use of the going
concern basis of accounting in the preparation of the
financial statements is appropriate. Our evaluation of
the directors’ assessment of the group’s and parent
company’s ability to continue to adopt the going
concern basis of accounting included reviewing and
evaluating managements cash flow forecast for the
twelve months from anticipated approval of the
financial statements and the results of sensitivity
analysis as well as considering post year end results
and cash positions.
Based on the work we have performed, we have not
identified any material uncertainties relating to events
or conditions that, individually or collectively, may
cast significant doubt on the group’s or the parent
company’s ability to continue as a going concern for
a period of at least twelve months from when the
financial statements are authorised for issue.
Our responsibilities and the responsibilities of the
directors with respect to going concern are described
in the relevant sections of this report.
Other information
The other information comprises the information
included in the annual report, other than the financial
statements and our auditor’s report thereon. The
directors are responsible for the other information
contained within the annual report. Our opinion on
the financial statements does not cover the other
information and, except to the extent otherwise
explicitly stated in our report, we do not express any
form of assurance conclusion thereon.
Our responsibility is to read the other information
and, in doing so, consider whether the other
information is materially inconsistent with the financial
statements or our knowledge obtained in the course
of the audit or otherwise appears to be materially
misstated. If we identify such material inconsistencies
or apparent material misstatements, we are required
to determine whether this gives rise to a material
misstatement in the financial statements themselves.
If, based on the work we have performed, we conclude
that there is a material misstatement of this other
information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the
Companies Act 2006
In our opinion, based on the work undertaken in the
course of the audit:
l the information given in the Strategic Report and
the Directors’ Report for the financial year for which
the financial statements are prepared is consistent
with the financial statements; and
l the Strategic Report and the Directors’ Report have
been prepared in accordance with applicable legal
requirements.
Matters on which we are required to report
by exception
In the light of the knowledge and understanding of
the group and the parent company and their
environment obtained in the course of the audit, we
have not identified material misstatements in the
Strategic Report or the Directors’ Report.
We have nothing to report in respect of the following
matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
l adequate accounting records have not been kept
by the parent company, or returns adequate for our
audit have not been received from branches not
visited by us; or
l the parent company financial statements are not in
agreement with the accounting records and returns; or
l certain disclosures of directors’ remuneration
specified by law are not made; or
l we have not received all the information and
explanations we require for our audit.
Full scope audit
2
97%
96%
98%
Number of components
Revenue
Total assets
Profit before tax
Other group companies are dormant and have no trade.
To the members of James Latham plc
Independent Auditor’s Report
JAMES LATHAM PLC ANNUAL REPORT 2024
50
Responsibilities of directors
As explained more fully in the directors’
responsibilities statement , the directors are
responsible for the preparation of the financial
statements and for being satisfied that they give
a true and fair view, and for such internal control
as the directors determine is necessary to enable
the preparation of financial statements that are
free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the directors
are responsible for assessing the group’s and the
parent company’s ability to continue as a going
concern, disclosing, as applicable, matters related to
going concern and using the going concern basis
of accounting unless the directors either intend to
liquidate the group or the parent company or to
cease operations, or have no realistic alternative but
to do so.
Auditor’s responsibilities for the audit of the
financial statements
Our objectives are to obtain reasonable assurance
about whether the financial statements as a whole
are free from material misstatement, whether due
to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (UK)
will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the
aggregate, they could reasonably be expected to
influence the economic decisions of users taken on
the basis of these financial statements.
The extent to which the audit was considered
capable of detecting irregularities, including fraud
Irregularities are instances of non-compliance with
laws and regulations. The objectives of our audit are to
obtain sufficient appropriate audit evidence regarding
compliance with laws and regulations that have a
direct effect on the determination of material amounts
and disclosures in the financial statements, to perform
audit procedures to help identify instances of non-
compliance with other laws and regulations that may
have a material effect on the financial statements, and
to respond appropriately to identified or suspected non-
compliance with laws and regulations identified during
the audit.
In relation to fraud, the objectives of our audit are to
identify and assess the risk of material misstatement
of the financial statements due to fraud, to obtain
sufficient appropriate audit evidence regarding the
assessed risks of material misstatement due to fraud
through designing and implementing appropriate
responses and to respond appropriately to fraud or
suspected fraud identified during the audit.
However, it is the primary responsibility of management,
with the oversight of those charged with governance,
to ensure that the entity's operations are conducted in
accordance with the provisions of laws and regulations
and for the prevention and detection of fraud.
In identifying and assessing risks of material
misstatement in respect of irregularities, including
fraud, the group audit engagement team:
l obtained an understanding of the nature of
the industry and sector, including the legal and
regulatory framework that the group and parent
company operate in and how the group and
parent company are complying with the legal and
regulatory framework;
l inquired of management, and those charged with
governance, about their own identification and
assessment of the risks of irregularities, including
any known actual, suspected or alleged instances
of fraud;
l discussed matters about non-compliance with
laws and regulations and how fraud might occur
including assessment of how and where the financial
statements may be susceptible to fraud.
Independent Auditor’s Report
To the members of James Latham plc
JAMES LATHAM PLC ANNUAL REPORT 2024
51
Legislation/Regulation
l Review of financial statement disclosures and testing to supporting
documentation
l Completion of disclosure checklists to identify areas of non-compliance.
UK-adopted IAS and
Companies Act 2006
Additional audit procedures performed by the Group audit
engagement team included:
l Inspection of any advice received from external tax advisers
l Inspection of any correspondence with local tax authorities
l Consideration of whether any matter identified during the audit
required reporting to an appropriate authority outside the entity.
Tax compliance
regulations
l Inquiry of management
l Inspection of board minutes and any legal and regulatory correspondence.
UK timber regulations
The most significant laws and regulations were determined as follows:
The areas that we identified as being susceptible to material misstatement due to fraud were:
A further description of our responsibilities for the audit
of the financial statements is located on the Financial
Reporting Council’s website at: www.frc.org.uk/
auditorsresponsibilities. This description forms part of
our auditor’s report.
Use of our report
This report is made solely to the company’s members,
as a body, in accordance with Chapter 3 of Part 16 of
the Companies Act 2006. Our audit work has been
undertaken so that we might state to the company’s
members those matters we are required to state to
them in an auditor’s report and for no other purpose.
Risk
l Tested a sample of goods dispatched records either side of 31 March 2024,
inspected supporting documentation and determined the appropriate
accounting period in which each transaction in the sample should be recorded
l Tested a sample of credit notes raised in the month following the year end
and determining whether they are indicative of an error or potential
misstatement relating to revenue recorded in the year to 31 March 2024
l Investigated any discrepancies where revenue does not appear to have been
recognised in the correct period according to the supporting documentation.
Revenue recognition:
cut-off
Audit procedures performed by the audit engagement team:
l Tested the appropriateness of journal entries and other adjustments
l Assessed whether the judgements made in making accounting estimates
are indicative of a potential bias
l Evaluated the business rationale of any significant transactions that are
unusual or outside the normal course of business.
Management override
of controls
l This is a key audit matter. Therefore, the procedures performed are
described in the relevant section above.
Inventory provision:
valuation
To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the
company and the company’s members as a body, for
our audit work, for this report, or for the opinions we
have formed.
William Farren FCA (Senior Statutory Auditor)
For and on behalf of
RSM UK Audit LLP
Statutory Auditor, Chartered Accountants
25 Farringdon Street, London, EC4A 4AB
8 July 2024
To the members of James Latham plc
Independent Auditor’s Report
JAMES LATHAM PLC ANNUAL REPORT 2024
52
Consolidated Statement of Comprehensive Income
£’000s
Notes
2024
2023
Continuing Operations
Revenue
2
366,514
408,370
Cost of sales (including warehouse costs)
3 (304,415) (328,361)
Gross profit
62,099
80,009
Selling and distribution costs
3 (24,225) (24,214)
Administrative expenses
3 (11,731) (12,097)
Operating profit
26,143
43,698
Finance income
5
4,313
1,071
Financing costs
6 (194) (258)
Profit before tax
3
30,262
44,511
Tax expense
7 (7,601) (8,593)
Profit after tax attributable to owners
of the parent company
22,661
35,918
Earnings per ordinary share (basic)
9
112.7p
179.5p
Earnings per ordinary share (diluted)
9
112.6p
179.2p
For the year ended 31 March 2024
Profit after tax
22,661
35,918
Other comprehensive income that will not be
reclassified subsequently to profit and loss:
Actuarial gain on defined benefit
pension scheme
20.2
5,770
1,407
Deferred tax relating to components of
other comprehensive income
(1,442)
(632)
Other comprehensive income that may
be reclassified subsequently to profit and loss:
Foreign translation charge
(252)
233
Other comprehensive income for the year,
net of tax
4,076
1,008
Total comprehensive income attributable to
the owners of the parent company
26,737
36,926
£’000s
Notes
2024
2023
For the year ended 31 March 2024
Financial Statements
Consolidated Income Statement
JAMES LATHAM PLC ANNUAL REPORT 2024
53
The comparative Company financial information has been restated (see note 28).
The Company’s profit for the year was £17,309,000 (2023: £7,653,000). The entity has taken exemption from presenting its
unconsolidated income statement under section 408 of the Companies Act 2006.
These accounts were approved and authorised for issue by the Board of Directors on 8 July 2024 and signed on its behalf by:
N.C. Latham and D.A. Dunmow
The consolidated and company notes on pages 58 to 95 form part of these accounts.
£’000s
Notes
2024
2023
2024
2023
Assets
Non-current assets
Investments
10
-
-
9,613
9,613
Goodwill
11
1,193
1,193
-
-
Other intangible assets
12
1,152
1,319
-
-
Property, plant and equipment
13
39,989
37,440
204 221
Right-of-use-assets
14
8,363
5,817
1,409
1,445
Trade and other receivables
17
789
-
-
-
Retirement benefit surplus
20
15,864
7,221
15,864
7,221
Total non-current assets
67,350
52,990
27,090
18,500
Current assets
Inventories
16
61,709
67,489
-
-
Trade and other receivables
17
64,757
66,782
5,277
157
Cash and cash equivalents
75,881
62,609
3,137
203
Tax receivable
-
490
935
1,014
Total current assets
202,347
197,370
9,349
1,374
Total assets
269,697
250,360
36,439
19,874
Current liabilities
Lease liabilities
14
1,373
879
75
84
Trade and other payables
18
35,456
41,066
1,805
1,772
Interest bearing loans and borrowings
19
-
-
-
99
Tax payable
408
-
-
-
Total current liabilities
37,237
41,945
1,880
1,955
Non-current liabilities
Interest bearing loans and borrowings
19
592
592
592
592
Lease liabilities
14
7,298
5,130
1,268
1,343
Deferred tax liabilities
15
9,340
7,118
3,947 1,787
Total non-current liabilities
17,230
12,840
5,807
3,722
Total liabilities
54,467
54,785
7,687
5,677
Net assets
215,230
195,575
28,752
14,197
Capital and reserves
Issued capital
21
5,040
5,040
5,040
5,040
Share-based payment reserve
22
152
124
152 124
Capital reserve
398
398
395
395
Retained earnings
209,640
190,013
23,165
8,638
Total equity attributable to
shareholders of the parent company
215,230
195,575
28,752
14,197
As at 31 March 2024
Group
Company
Company Registration Number 65619
Restated
JAMES LATHAM PLC ANNUAL REPORT 2024
54
Consolidated and Company Balance Sheet
Financial Statements
£’000
£’000
£’000
£’000
£’000
£’000
Balance at 1 April 2022
5,040
387 (873)
398
159,019
163,971
Profit for the year
-
-
-
-
35,918
35,918
Other comprehensive income:
Actuarial gain on defined benefit
pension scheme
-
-
- -
1,407
1,407
Deferred tax relating to components
of other comprehensive income
-
-
-
- (632) (632)
Foreign translation charge
-
-
-
- 233 233
Total comprehensive income for
the year
-
-
-
-
36,926
36,926
Transactions with owners:
Dividends
-
-
-
- (6,825) (6,825)
Exercise of options
- (386) 1,397
-
369
1,380
Deferred tax on share options
- (59)
-
-
- (59)
Transfer to retained earnings
-
- (524)
- 524 -
Share-based payment expense
-
182
-
-
-
182
Total transactions with owners
- (263)
873
- (5,932) (5,322)
Balance at 31 March 2023
5,040
124
-
398
190,013
195,575
Profit for the year
-
-
-
-
22,661
22,661
Other comprehensive income:
Actuarial gain on defined benefit
pension scheme
-
-
-
-
5,770
5,770
Deferred tax relating to components
of other comprehensive income
-
-
-
- (1,442) (1,442)
Foreign translation charge
-
-
-
- (252) (252)
Total comprehensive income for
the year
-
-
-
-
26,737
26,737
Transactions with owners:
Dividends
-
-
-
- (7,348) (7,348)
Exercise of options
- (32)
-
-
32
-
Deferred tax on share options
- (20)
-
- - (20)
Own shares movement
-
-
-
-
206
206
Share-based payment expense
-
80
-
-
-
80
Total transactions with owners
- 28
-
- (7,110) (7,082)
Balance at 31 March 2024
5,040
152
-
398
209,640
215,230
Share-based
payment
reserve
Issued
capital
Own
shares
Retained
earnings
Capital
reserve
Total
equity
Attributable to owners of the parent company
JAMES LATHAM PLC ANNUAL REPORT 2024
55
Financial Statements
Consolidated Statement of Changes in Equity
£’000
£’000
£’000
£’000
£’000
£’000
Balance at 1 April 2022
5,040
387 (873)
395
6,142
11,091
Profit for the year
-
-
-
- 7,653 7,653
Other comprehensive income:
Actuarial gain on defined benefit
pension scheme
-
-
-
-
1,407
1,407
Deferred tax relating to components
of other comprehensive income
-
-
-
- (632) (632)
Total comprehensive income
for the year
-
-
-
-
8,428
8,428
Transactions with owners:
Dividends
-
-
-
- (6,825) (6,825)
Exercise of options
- (386) 1,397
-
369 1,380
Deferred tax on share options
- (59)
-
-
- (59)
Transfer to retained earnings
-
- (524)
- 524
-
Share-based payment expense
-
182
-
-
-
182
Total transactions with owners
- (263) 873
- (5,932) (5,322)
Balance at 31 March 2023
5,040
124
-
395
8,638
14,197
Profit for the year
-
-
-
-
17,309
17,309
Other comprehensive income:
Actuarial gain on defined benefit
pension scheme
-
-
-
-
5,770
5,770
Deferred tax relating to components
of other comprehensive income
-
-
-
- (1,442) (1,442)
Total comprehensive income for the year
-
-
-
-
21,637
21,637
Transactions with owners:
Dividends
-
-
-
- (7,348) (7,348)
Exercise of options
- (32)
-
-
32
-
Deferred tax on share options
- (20)
-
-
- (20)
Own shares movement
-
-
-
-
206 206
Share-based payment expense
-
80
-
-
-
80
Total transactions with owners
- 28
-
- (7,110) (7,082)
Balance at 31 March 2024
5,040
152
-
395
23,165
28,752
Issued
capital
Share-based
payment
reserve
Retained
earnings
Own
shares
Total
equity
Attributable to owners of the parent company
Capital
reserve
The share-based payment reserve represents the movements associated with current employee share option schemes.
The capital reserve represents the cancellation of the preference shares.
JAMES LATHAM PLC ANNUAL REPORT 2024
56
Company Statement of Changes in Equity
Financial Statements
£’000s
Notes
2024
2023
2024
2023
For the year ended 31 March 2024
Group
Company
JAMES LATHAM PLC ANNUAL REPORT 2024
57
Financial Statements
Consolidated and Company Cash Flow Statement
Restated
Restated
The comparative figures have been restated and full details are shown in note 28.
Net cash flow from operating activities
Cash generated from/(used in) operations
24
29,563
42,484 (6,861) (3,603)
Interest paid
(48) (53) (47) (48)
Income tax paid
(5,943) (7,498)
514
1,717
Net cash inflow/(outflow) from operating activities
23,572
34,933 (6,394) (1,934)
Cash flows from investing activities
Interest received and similar income
3,560
822
204
46
Dividend received
-
-
16,500
8,500
Purchase of property, plant and equipment
(5,595) (3,304) (8) (200)
Proceeds from sale of property, plant
and equipment
67
72
-
-
Net cash (outflow)/inflow from investing activities
(1,968) (2,410)
16,696
8,346
Cash flows from financing activities
Purchase of treasury shares (6)
- (6)
-
Exercise of share options
212
1,380
212 1,380
Lease liability payments (1,190) (1,499) (127) (131)
Equity dividends paid (7,348) (6,825) (7,348) (6,825)
Net cash outflow from financing activities
(8,332) (6,944) (7,269) (5,576)
Increase in cash and cash equivalents
for the year
13,272
25,579 3,033
836
Cash and cash equivalents at
beginning of year
62,609
37,030
104 (732)
Cash and cash equivalents at end of year
75,881
62,609 3,137 104
Balance sheet cash and cash equivalents
75,881
62,609
3,137
203
Bank overdraft in current liabilities (note 19)
-
-
- (99)
Cash and cash equivalents at end of year
75,881
62,609
3,137 104
General information
James Latham plc is a public limited company
incorporated and domiciled in the United Kingdom
under the Companies Act 2006 and is listed on the AIM
market. The nature of the group’s operations and its
principal activities are set out in the Strategic Review.
The address of the registered office is Unit C2 Breakspear
Park, Breakspear Way, Hemel Hempstead, Herts, HP2 4TZ
1. Summary of significant accounting policies
The principal accounting policies applied in the
preparation of these consolidated and company
accounts are set out below. These policies have been
consistently applied to all the years presented, unless
otherwise stated.
(a) Basis of preparation
These consolidated and company accounts have been
prepared in accordance with UK-adopted International
Accounting Standards and Companies Act 2006.
The accounts have been prepared under the historical
cost convention except for forward contract financial
instruments measured at fair value. The directors have
prepared the financial statements on the going concern
basis for the reasons set out on page 46. A summary of
the more important group accounting policies, which
have been applied consistently across the group, is set
out below.
New and amended standards that are effective
for the current year
A number of new or amended standards became
applicable for the current reporting period and as
a result the group and company has applied the
following standards:
- IFRS17 Insurance Contracts (effective 1 January 2023)
- Amendments to IFRS 9 ‘Financial instruments’ with
IFRS 4 ‘Insurance Contracts’ (Amendments to IFRS 4)
(effective 1 January 2023)
- Amendments to IAS 1 ‘Classification of Liabilities as
Current or Non-Current’ (effective 1 January 2023)
- Amendments to IAS 1 and IFRS Practice Statement 2
‘Disclosure of Accounting Policies’ (effective 1 January
2023)
- Amendments to IAS 12 ‘Deferred Tax related to Assets
and Liabilities arising from a Single Transaction’
(effective 1 January 2023)
- Amendments to IAS 8 ‘Definition of Accounting
Estimates’ (effective 1 January 2023)
The above amendments did not have a material impact
on the financial statements of the group or company.
New standards, interpretations and amendments
not yet effective
At the date of authorisation of these financial
statements, the following standards and interpretations
which are issued but not yet effective or endorsed
(unless otherwise stated), have not been applied:
- Amendment to IAS 1 – Non-current liabilities with
covenants (effective 1 January 2024)
- Amendment to IFRS 16 – Leases on sale and leaseback
(effective 1 January 2024)
- Amendment to IAS 7 and IFRS 7 – Supplier finance
(effective 1 January 2024)
- Amendments to IAS 21 – Lack of Exchangeability
(effective 1 January 2025)
- IFRS S1, General requirements for disclosure of
sustainability-related financial information (effective
1 January 2024, subject to UK endorsement)
- IFRS S2 ‘Climate-related disclosures’ (effective
1 January 2024, subject to UK endorsement)
The Directors do not expect the adoption of these
standards and amendments to have a material impact
on the Financial Statements.
(b) Basis of consolidation
The consolidated accounts include the company and all
its subsidiary undertakings (from the date of acquisition
or to the date of disposal where applicable). Intra group
sales and profits are eliminated on consolidation. The
accounts of all subsidiary undertakings are made up to
31 March.
A subsidiary is an entity controlled, either directly or
indirectly, by the company, where control is the power
to govern the financial and operating policies of the
entity so as to obtain benefit from its activities. The
acquisition method of accounting is used to account for
the acquisition of subsidiaries by the group. The cost of
an acquisition is measured as the fair value of the assets
given, equity instruments issued and liabilities incurred
or assumed at the date of exchange. Acquisition costs
are expensed in the period in which they are incurred.
JAMES LATHAM PLC ANNUAL REPORT 2024
58
Notes forming part of the Group Accounts
Financial Statements
1.1 Revenue recognition
Revenue comprises net sales to external customers
exclusive of Value Added Tax. Revenue is recognised
upon delivery to, or collection by, the customer as this
is when the performance obligation in the contract is
fulfilled and when control of the goods transfers to the
customer. Revenue is shown net of customer rebates
and after eliminating sales within the group.
For our credit customers, the payment falling will be due
under our standard payment terms and any outstanding
balance shown in trade receivables.
Where the Group has rebate agreements with its
customers, revenues are calculated in accordance with
the agreements in place and with the expectation that
these amounts are not likely to reverse, only when there
is a firm expectation that amounts have been fully
earned under those agreements.
1.2 Segmental reporting
IFRS 8 “Operating Segments” requires operating
segments to be identified on the basis of internal
reporting of components of the group that are regularly
reviewed by the chief operating decision maker,
which the group considers to be the Chairman, to
allocate resources to the segments and to assess their
performance. Further information is available in note 2.
1.3 Operating profit
Operating profit consists of revenues and other
operating income less operating expenses. Operating
profit excludes net finance costs.
1.4 Functional and presentational currency
The presentation currency of the Group is sterling.
All Group companies have a functional currency of
Sterling (other than Abbey Wood Agencies Limited
which has a functional currency of the Euro) consistent
with the presentation of the Group’s consolidated
financial statements.
Amounts presented in the financial statements have
been rounded to the nearest £’000.
1.5 Foreign currency translation
Transactions denominated in foreign currencies
are recorded at the rates ruling on the date of the
transaction. At each balance sheet date, monetary
assets and liabilities denominated in foreign currencies
are translated at the rate of exchange ruling at the
balance sheet date. Any gains or losses arising from the
transactions are taken to the income statement.
In order to help manage its exposure to certain foreign
exchange risks, the group enters into forward contracts.
Gains and losses on forward contracts are recognised at
fair value through the income statement.
1.6 Property, plant and equipment
Property, plant and equipment is stated at cost less
depreciation. Depreciation on property, plant and
equipment is provided at rates calculated to write off
the cost less estimated residual value of each asset over
its expected life.
It is calculated at the following rates:
Freehold buildings
- over 50 years
Long leasehold buildings
- over 50 years
Leasehold improvements
- over 5 to 15 years
Fixtures and fittings
- over 4 to 10 years
Plant, equipment and vehicles
- over 5 to 20 years
Freehold land is not depreciated.
Estimated residual values and useful lives are reviewed
annually and adjusted where necessary.
1.7 Impairment of non-current assets
Goodwill is reviewed annually for impairment. The
carrying amounts of the group’s other intangible assets
and property, plant and equipment are reviewed at each
balance sheet date to determine whether there is any
indication of impairment. If such an indication exists, the
asset’s recoverable amount is estimated and compared
to its carrying value. Where the asset does not generate
cash flows that are independent from other assets, the
group estimates the recoverable amount of the cash-
generating unit to which the asset belongs. Where
the carrying value exceeds the recoverable amount, a
provision for the impairment loss is established with a
charge being made to the income statement.
1.8 Goodwill
Goodwill on consolidation, being the excess of the
purchase price over the fair value of the net assets of
subsidiary undertakings at the date of acquisition is
capitalised in accordance with IFRS 3 (revised) “Business
combinations”. Goodwill is tested annually for impairment,
or more frequently when there is an indication that
goodwill may be impaired. Goodwill is carried at cost
less accumulated impairment losses. Impairment losses
on goodwill are not reversed in a subsequent period.
1.9.1 Intangible assets – Trademark
Acquired trademarks are shown at historical cost.
Trademarks are considered to have a finite life and
are carried at cost less accumulated amortisation.
Amortisation is calculated using the straight-line
method over the estimated useful life of 20 years.
1.9.2 Intangible assets – Customer lists
Acquired customer lists are shown at historical cost.
Customer lists are considered to have a finite life and
are carried at cost less accumulated amortisation.
Amortisation is calculated using the straight-line
method over the estimated useful life of 10 years.
JAMES LATHAM PLC ANNUAL REPORT 2024
59
Financial Statements
Notes forming part of the Group Accounts
1.10 Inventories
Inventories are stated at the lower of cost (including an
appropriate proportion of attributable supplier rebates
and discounts) and net realisable value.
Net realisable value is the estimated selling price in
the ordinary course of business, less applicable variable
selling expenses. Provision is made for obsolete or slow
moving inventories where appropriate.
The cost of inventories is based on the weighted average
principle.
1.11 Financial instruments
Financial assets and financial liabilities are recognised
on the group’s balance sheet when the group has
become party to the contractual provisions of the
instrument. Subsequent measurement of all recognised
financial assets within the scope of IFRS 9 are required
to be measured at amortised cost or fair value on the
basis of the group’s business model for managing
financial assets and their contractual cash flows. Where
assets are measured at fair value, gains and losses are
recognised through profit or loss (fair value through
profit or loss, “FVTPL”).
1.11.1 Trade and other receivables
Trade receivables are classified as financial assets at
amortised cost and are initially recognised at fair value.
They are subsequently measured at their amortised cost
using the effective interest method less any provision for
impairment. For trade receivables, the group uses the
simplified approach permitted by IFRS 9 which requires
expected lifetime losses to be recognised from initial
recognition of receivables.
The Company’s group receivables represent trading
balances and interest free amounts advanced to other
group companies with no fixed repayment terms. The
measurement of impairment losses depends on whether
the financial asset is ‘performing’, ‘underperforming’, or
‘non-performing’ based on the company’s assessment
of increases in the credit risk of the financial asset since
its initial recognition and any events that have occurred
before the year end which have a detrimental impact on
cash flows. In assessing whether credit risk has increased
significantly, the company compares the risk of default
at the year-end with the risk of default when the
receivable was originally recognised using reasonable
and supportable past and forward-looking information
that is available. No impairment has been recognised
against amounts due from fellow subsidiaries at 31 March
2024 or 31 March 2023, as any expected credit losses are
not material.
1.11.2 Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and
at bank and other short-term, highly liquid investments
that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of
changes in value. The carrying amount of these assets
approximates their fair value.
1.11.3 Financial liabilities and equity
Financial liabilities and equity instruments are
classified according to the substance of the contractual
arrangements entered into. An equity instrument is any
contract that evidences a residual interest in the assets
of the group after deducting all of its liabilities.
1.11.4 Bank borrowings
Interest-bearing bank loans are recorded initially at
their fair value, net of direct transaction costs. Such
instruments are subsequently carried at their amortised
cost and finance charges, including premiums payable
on settlement or redemption, are recognised in the
income statement over the term of the instrument
using an effective rate of interest.
1.11.5 Trade payables
Trade payables are initially recognised at fair value and
subsequently at amortised cost using the effective
interest method.
1.11.6 Equity instruments
Equity instruments issued by the group are recorded at
the proceeds received, net of direct issue costs.
1.11.7 Derivative financial instruments
The group’s activities expose the entity primarily to
foreign currency and interest rate risk. The group uses
foreign exchange forward contracts and fixed rate
bank loans to help manage these exposures. The group
does not use derivative financial instruments for
speculative purposes.
Derivative financial instruments are initially recognised
at fair value on the date a derivative contract is entered
into and are subsequently remeasured at their fair value.
Foreign currency forward contracts and fixed rate
bank loans are not designated effective hedges and
so are marked to market at the balance sheet date,
with any gains or losses being taken through the
income statement.
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
60
1.12 Current and deferred income tax
Current tax is the expected tax payable on taxable
income for the year, using tax rates enacted or
substantively enacted at the balance sheet date, and any
adjustments to tax payable in respect of previous years.
Deferred tax expected to be payable or recoverable
on differences at the balance sheet date between the
tax bases and liabilities and their carrying amounts for
financial reporting purposes is accounted for using the
liability method. Deferred tax liabilities are generally
recognised for all taxable temporary differences, and
deferred tax assets are recognised to the extent that it
is probable that taxable profits will be available against
which deductible differences can be utilised.
Deferred tax is calculated at the rates of taxation
which are expected to apply when the deferred tax
asset or liability is realised or settled, based on the
rates of taxation enacted or substantively enacted
at the balance sheet date.
1.13 Leased assets
The Group as a Lessee
For any new contracts entered into, the Group considers
whether a contracts is, or contains a lease. A lease is
defined as ‘a contract, or part of a contract, that conveys
the right to use an asset for a period of time in exchange
for consideration’
Measurement and recognition of leases as a lessee
At lease commencement date, the Group recognises a
right-of-use asset and lease liability on the balance sheet.
A right-of-use asset is recognised at commencement
of the lease and initially measured at the amount of the
lease liability, plus any incremental costs of obtaining
the lease and any lease payments made at or before
the leased asset is available for use by the Group. The
right-of-use asset is subsequently measured at cost
less accumulated depreciation and any accumulated
impairment losses. The Group depreciates the right-
of-use asset on a straight-line basis from the lease
commencement date to the earlier of the end of the
useful life of the right-of-use asset or the end of the lease
term. The Group also assesses the right-of-use asset for
impairment when such indicators exist.
At the commencement date, the Group measures the
lease liability at the present value of the lease payments
unpaid at that date, discounted using the interest rate
implicit in the lease if that rate is readily available or the
Group’s incremental borrowing rate.
Subsequent to initial measurement, the liability will be
reduced for payments made and increased for interest.
Where leases are twelve months or less or of low value,
payments made are expensed evenly over the period of
the lease.
1.14 Dividend distribution
Dividend distribution to the company’s shareholders
is recognised as a liability in the group’s financial
statements in the period in which the dividends are
approved by the company’s shareholders.
1.15 Retirement benefit costs
Retirement benefit costs are accounted for in
accordance with IAS 19 (revised) “Employee benefits”.
Full details of the basis of calculation of the net pension
asset disclosed in the balance sheet at 31 March 2024,
and of the amounts charged/credited to the income
statement and equity, are set out in note 20 to the
accounts.
The cost of the defined benefit scheme is determined
using the projected unit credit method with actuarial
valuations being carried out at the end of each reporting
period. The current service cost represents the increase
in the present value of the plan liabilities expected to
arise from employee service in the current period. Past
service costs resulting from enhanced benefits are
recognised at the earlier of the date when a plan
amendment or curtailment occurs and the date when
an entity recognises any termination benefits, or related
restructuring costs under IAS 37 Provisions, Contingent
Liabilities and Contingent Assets. Interest cost represents
a net interest cost on the net defined benefit liability.
Gains and losses on curtailments or settlements are
recognised in the income statement in the period in
which the curtailment or settlement occurs.
Actuarial gains and losses, which represent differences
between the expected and actuarial returns on the plan
assets and the effect of changes in actuarial assumptions,
are recognised in the statement of comprehensive
income in the period in which they occur.
The retirement benefit obligation recognised in the
balance sheet represents the present value of the
defined benefit obligation, as reduced by the fair value of
scheme assets. Any asset resulting from the calculation
is limited to the present value of available refunds and
reductions in future contributions to the plan. Where the
Group is considered to have a contractual obligation to
fund the pension scheme above the accounting value of
the liabilities, an onerous obligation is recognised.
Pension payments to the group’s defined
contributions schemes are charged to the income
statement as they arise.
Financial Statements
Notes forming part of the Group Accounts
JAMES LATHAM PLC ANNUAL REPORT 2024
61
1.16 Share-based payment
The group has applied the requirements of IFRS 2
“Share-based payment” which requires the fair value of
share-based payments to be recognised as an expense.
Certain employees receive remuneration in the form of
share options. The fair value of the equity instruments
granted is measured on the date at which they are
granted by using the Black-Scholes model, and is based
on the group’s estimate of the number of options that
will eventually vest. The fair value is expensed in the
income statement over the vesting period.
1.17 Treasury shares
Treasury shares are shown at historical cost, and
deducted from retained earnings directly in equity.
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
62
1.18 Employee Share Ownership Plan (ESOP)
Own shares represent the company’s own shares
that are held by the group sponsored ESOP trust in
relation to the group’s employees share schemes. Own
shares are deducted at cost in arriving at shareholders’
equity and gains and losses on their sale or transfer are
recognised directly in equity. ESOP is treated separately
and consolidated in the group and company accounts.
1.19 Government grants
Grants received from the government are recognised
at their fair value where there is a reasonable assurance
that the grant will be received and the group will
comply with all attached conditions.
1.20 Investments in subsidiaries
Investments in subsidiaries are stated at cost less
accumulated impairment losses in the Company’s
balance sheet.
1.21 Accounting estimates and judgements
The directors have considered the accounting estimates and judgements used in the financial statements to assess
whether suitable accounting policies have been adopted. The significant accounting estimates with a significant risk
of a material change to the carrying value of assets and liabilities within the next year in terms of IAS1 ‘Presentation
of Financial Statements’ are considered to be the actuarial valuations of the Defined Benefit Pension scheme as shown
in the table below:-
At 31 March 2024 the Group’s balance
sheet included a net asset position of
£15.9m in respect of its defined benefit
pension scheme.
Due to the inherent uncertainty involved
in making assumptions and estimates,
including in respect of the estimation of
the impact of IFRIC 14 on the recognised
asset/liability, actual outcomes could differ
from those assumptions and estimates.
Defined Benefit
pension scheme
The directors engage an actuary to
produce the calculations under IAS19, and
agree a set of assumptions to be used in
the calculation.
These calculations are discussed and
explanations given on the reasons for
using the assumptions, of which the key
assumptions are discount rate, inflation
and life expectancy. Sensitivity analysis
is also undertaken on changes to these
assumptions.
The maximum surplus available has been
calculated on the basis that the surplus
recoverable by the company is in the form
of both refunds and reductions in future
contributions
Having considered these factors, the
directors concluded that the calculations
were prepared on a reasonable and
consistent basis and made acceptable
estimates. Further information is disclosed
in Note 20 to the accounts.
Financial Statements
Notes forming part of the Group Accounts
JAMES LATHAM PLC ANNUAL REPORT 2024
63
The consolidated financial statements include other areas of judgement and accounting estimates, which do not meet
the definition of significant accounting estimates under IAS1. These are set out in the table below:
Inventory should be included on the
Group’s balance sheet at the lower of
cost and net realisable value. At 31 March
2024 the Group’s inventory was valued
at £61.7m.
The determination of net realisable
value involves making judgements on
obsolete and slow moving inventories.
The inventories impairment charge for
the year is £1.5m.
Judgement
and accounting
estimate
The directors reviewed the calculations on
the provision for obsolete and slow moving
inventories, which takes into account the age
and activity of each individual product line.
Having reviewed the provisions, the directors
concluded that the calculations were
prepared on a consistent basis and are a
reasonable judgement on obsolete and slow
moving inventories. Further information is
included in note 16 to the accounts.
Issue and nature of judgement
or accounting estimate
Factors considered and conclusions
reached
Inventory
valuation
Right of use assets should be included
on the Group’s balance sheet according
to the principles set out in IFRS16. Right
of use assets at 31 March 2024 are £8.4m.
IFRS16 requires the Group to make
judgements as to the length of a lease.
A change to the judgement on the
length of the lease would affect the
valuation of the right of use asset and
associated lease liability.
The inclusion of a lease extension or lease
break period in the lease term requires a
judgement to be made on the lease term to be
used in the IFRS16 calculations. The directors
considered each lease, the lease extension or
lease break clauses, the profitability of the site
and the current expectation regarding the
future use of that site.
The directors have reviewed these
judgements and concluded that a reasonable
judgement has been made on the length of
the lease term.
Right of Use
assets
Lease liabilities are measured at the
present value of lease payments to be
made using a suitable discount rate at
the lease commencement date. Lease
liabilities on the Group’s balance sheet at
31 March 2024 are £8.7m.
IFRS16 requires the Group to make an
estimate of the appropriate discount rate
to use.
The directors have considered each lease
and the discount rate used to calculate the
present value, and have concluded that these
calculations have been prepared using an
appropriate discount rate.
Further information is available in note 14 to
the accounts.
Lease liabilities
2. Business and geographical segments
For management purposes, the group is organised into one trading division, that of timber importing and
distribution, carried out in each of the twelve locations trading predominantly in the United Kingdom and the
Republic of Ireland.
In each location, turnover and gross margin is reviewed separately for Panel Products (including ATP) and Timber
(including Flooring and LDT). Most locations sell both products groups, except in the London region where for
operational efficiency Panel Products and Timber are sold from separate locations. Resources are allocated and
employees incentivised on the basis of the results of their individual location and not on the basis of a product group.
Whilst there are regional differences in the relative importance of product groups and classes of customer,
each location is considered to have similar economic characteristics and so can be aggregated into one segment.
We therefore consider there is one business segment and one geographic segment.
All revenue is recognised at a point in time for both financial years.
2024
2023
The geographical turnover is as follows:
£’000
£’000
Republic of Ireland
14,237
17,079
Rest of Europe
2
68
United Kingdom
352,275
391,223
366,514
408,370
3. Profit before tax
Employee remuneration (note 4)
28,128
27,835
Net foreign exchange (gains)/losses
(386)
324
Cost of inventories recognised as an expense and included
in ‘cost of sales’ in the consolidated income statement
286,393
306,779
Depreciation of property, plant and equipment (note 13)
3,014
2,773
Depreciation of right-of-use assets (note 14)
1,090
1,232
Loss/(profit) on disposal of property, plant and equipment
35
(46)
Amortisation of intangible assets (note 12)
167
168
Fees payable to the company’s auditors for the audit
of the consolidated and parent company accounts
20
17
Fees payable to the company’s auditors and its
associates for other services:
The audit of the company’s subsidiary pursuant to legislation
178
151
Fees in relation to the audit of the James Latham plc
Pension and Assurance Scheme
16
15
Other expenses
21,716
25,424
Total cost of sales, Distribution costs and
Administrative expenses
340,371
364,672
2024
£’000
2023
£’000
Profit for the year has been arrived at after taking into account the following charges/(credits):
JAMES LATHAM PLC ANNUAL REPORT 2024
64
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
65
Financial Statements
Notes forming part of the Group Accounts
5. Finance income
2024
2023
£’000
£’000
On pension surplus
753
249
Bank deposit interest
3,560
822
Interest receivable
4,313
1,071
The interest received is on bank deposits.
Of the above payroll costs, £8,061,000 (2023: £7,698,000) is included in cost of sales, £13,648,000 (2023: £13,119,000)
is included in selling and distribution costs, and £6,419,000 (2023: £7,018,000) is included in administrative
expenses in the income statement.
4. Information regarding employees
The monthly average number of persons, including directors, employed by the group during the year was as follows:
2024
2023
2024
2023
Number
Number
Number
Number
Management and administration
77
77
30
30
Warehousing
219
210
-
-
Selling
165
158
-
-
Distribution
104
98
-
-
565
543
30
30
The aggregate payroll costs of these
employees were as follows:
£’000
£’000
£’000
£’000
Wages and salaries
23,037
22,494
1,998
2,274
Social security costs
2,458
2,477
235
281
Apprenticeship levy
101
95
10
10
Pension costs
2,452
2,587
2,180
4,842
Share-based payment
80
182
182
182
28,128
27,835
4,605
7,589
Group
Company
The interest payable on bank loans and overdrafts is payable on balances with a maturity analysis of less than
6 months at the balance sheet date and interest on all other interest payments are based on balances with a
maturity analysis of over five years at the balance sheet date.
6. Financing costs
2024
2023
£’000
£’000
On bank loans and overdrafts
1
5
Interest on lease liabilities
146
205
On 8% Cumulative Preference shares
47
48
194
258
7. Tax expense
2024
2023
£’000
£’000
The charge for taxation on profit comprises:
Current year:
UK corporation tax at 25% (2023: 19%)
6,841
7,359
Prior year
- (769)
Deferred taxation - post employment benefits
701
1,208
- prior year
-
769
- other
59
26
7,601
8,593
Profit before taxation
30,262
44,511
Tax at 25% (2023: 19%)
7,566
8,457
Tax effect of expenses/credits that are not deductible/
taxable in determining taxable profit
56
86
IBAs derecognised in current year (23) (21)
Prior year – corporation tax
- (769)
Prior year – deferred tax
-
769
Other
2
71
Total tax charge
7,601
8,593
The Directors propose a final dividend for 2024 of 71.0p per share, that, subject to approval by the shareholders,
will be paid on 23 August 2024 to shareholders on the register on 2 August 2024.
Based on the number of shares currently in issue, the final dividend for 2024 is expected to absorb £14,314,000.
As reported in note 20.3 in the financial statements for the year ended 31 March 2023, a restatement of the
Company balance sheet to include the defined benefit pension scheme resulted in James Latham plc paying
dividends between the years ended 31 March 2016 and 31 March 2023 which management have determined
subsequently were not in full compliance with the Companies Act 2006. The directors have taken legal advice
on this matter which has concluded that no further steps are required to be taken to disclose, remedy or rectify
the events which have happened and the directors have put in place additional checks to ensure that there are
sufficient distributable reserves in the parent company before future dividends are paid.
8. Dividends
£’000
£’000 £’000 £’000
Ordinary dividends:
Final 28.8p per share paid 25 August 2023 (2022: 27.0p)
5,789
5,380
Interim 7.75p per share paid 26 January 2024 (2023: 7.25p)
1,559
1,445
7,348
6,825
2024 2023
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
66
Financial Statements
Notes forming part of the Group Accounts
JAMES LATHAM PLC ANNUAL REPORT 2024
67
9. Earnings per ordinary share
Earnings per ordinary share is calculated by dividing the net profit for the year attributable to ordinary
shareholders by the weighted average number of ordinary shares outstanding during the year.
2024
2023
’000
’000
Profit attributable to ordinary equity holders
22,661
35,918
Issued ordinary share capital
20,160
20,160
Less: weighted average number of own shares held in treasury – (105)
Less: weighted average number of own shares held in ESOP Trust (48) (46)
Weighted average share capital
20,112
20,009
Add: dilutive effects of share options issued
14
31
Weighted average share capital for diluted earnings per ordinary
share calculation
20,126
20,040
Earnings per ordinary share (basic)
112.7p
179.5p
Earnings per ordinary share (diluted)
112.6p
179.2p
Name
Country of
Class of shares
Percentage
Principal activity
incorporation
of ownership
Lathams Limited
England and Wales
£1 Ordinary
100%
Importing and distribution
of timber and panel products
Abbey Wood Agencies Limited *
Repubic of Ireland
€1.27 Ordinary
100%
Importing and distribution
of timber and panel products
James Latham Trustee Limited
England and Wales
£1 Ordinary
100%
Corporate Trustee Company
LDT Westerham Limited
England and Wales
£1 Ordinary
100%
Dormant
Baüsen Limited
England and Wales
£1 Ordinary
100%
Dormant
James Latham (Midland & Western) Limited*
England and Wales
£1 Ordinary
100%
Dormant
Advanced Technical Panels Limited*
England and Wales
£1 Ordinary
100%
Dormant
Latham Timber Centres (Bridgwater) Limited
England and Wales
£1 Ordinary
100%
Dormant
James Latham (Warehousing) Limited
England and Wales
£1 Ordinary
100%
Dormant
Sarcon (No. 155) Limited
Northern Ireland
£1 Ordinary
100%
Dormant
I.J.K. Timber Group Limited
England and Wales
£1 Ordinary
100%
Importing and distribution
of timber and panel products
Irvin and Sellers Limited*
Northern Ireland
£1 Ordinary
100%
Dormant
Keizer Venesta Limited*
Northern Ireland
£1 Ordinary
100%
Dormant
Northern Hardwoods Limited*
Northern Ireland
£1 Ordinary
100%
Dormant
William Davidson (Timber) Limited*
Northern Ireland
£1 Ordinary
100%
Dormant
* Indirectly held.
All companies operate within the United Kingdom and the Republic of Ireland and their registered office is at Unit C2
Breakspear Park, Breakspear Way, Hemel Hempstead, Herts, HP2 4TZ except for Sarcon (No. 155) Limited, Irvin and Sellers Limited,
Keizer Venesta Limited, Northern Hardwoods Limited and William Davidson (Timber) Limited whose registered office is
24-28 Duncrue Street, Belfast, Co Antrim, Northern Ireland, BT3 9AR.
Subsidiary undertakings
£’000
Shares:
At 1 April 2022, 2023 and 31 March 2024
9,613
10. Fixed asset investments – Company
Details of subsidiary companies are given below:
Cost:
At 1 April 2022
1,497
Additions
-
At 1 April 2023
1,497
Additions
-
At 31 March 2024
1,497
Impairment
At 1 April 2022
125
Charge for impairment during the year
179
At 1 April 2023
304
Charge for impairment during the year
-
At 31 March 2024
304
Net book value
At 31 March 2024
1,193
At 31 March 2023
1,193
At 31 March 2023
1,372
Goodwill
£’000
11. Goodwill – Group
In accordance with the group’s accounting policy the carrying value of goodwill is reviewed annually for
impairment. The review entails an assessment of the present value of projected return from an asset over a
period of 5 years. The pre-tax discount rate used is the group’s estimated weighted average cost of capital which
is currently 6% (2023: 6%). The key assumptions in the impairment review used an annual growth rate in gross
margins of 5.5% (2023: 5.5%) with a perpetuity rate of 2% (2023: 2%).
The year end review did not result in the impairment of goodwill as the estimated recoverable amount exceeded
the carrying value. No reasonable change in the assumed growth rates would cause an impairment to the assets.
The recoverable amount of the cash generating unit to which the goodwill has been allocated is determined
based on value-in-use calculations.
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
68
Financial Statements
Notes forming part of the Group Accounts
JAMES LATHAM PLC ANNUAL REPORT 2024
69
The amortisation charge is included in the income statement under administrative expenses.
The registered trademarks of the company are Woodex®, Buffalo® Board and Baüsen® Flooring.
The Customer lists relates to the purchase of Abbey Wood Agencies Limited. The cost of the customer lists
represents the fair value of the assets at the time of the purchase.
The company does not have any intangible assets at 31 March 2024 or 31 March 2023.
Cost:
At 1 April 2022 and 2023
1
2,016
2,017
Additions on acquisition
-
-
-
At 31 March 2024
1
2,016
2,017
Amortisation
At 1 April 2022
-
530
530
Charge for the year
-
168
168
At 1 April 2023
-
698
698
Charge for the year
-
167
167
At 31 March 2024
-
865
865
Net book value
At 31 March 2024
1
1,151
1,152
At 31 March 2023
1
1,318
1,319
At 31 March 2022
1
1,486
1,487
Total
£’000
12. Other intangible assets – Group
Trademark
£’000
Customer
Lists
£’000
Short
Plant,
leasehold
equipment
Freehold
Long
property
and
property
leasehold
improvements
vehicles
Total
£’000
£’000
£’000
£’000
£’000
13. Property, plant and equipment
13.1 Group
At 1 April 2022
30,288
-
617
23,944
54,849
Additions
1,500
-
7
1,797
3,304
Disposals
-
-
- (1,041) (1,041)
At 1 April 2023
31,788
-
624
24,700
57,112
Additions
341
2,065
-
3,189
5,595
Disposals (15) -
- (690) (705)
At 31 March 2024
32,114
2,065
624
27,199
62,002
Depreciation:
At 1 April 2022
4,729
-
512
12,673
17,914
Disposals
-
-
- (1,015) (1,015)
Charge for the year
448
-
37
2,288
2,773
At 1 April 2023
5,177
-
549
13,946
19,672
Disposals (6) -
- (667) (673)
Charge for the year
470
21
32 2,491
3,014
At 31 March 2024
5,641
21
581
15,770
22,013
Net book value
At 31 March 2024
26,473
2,044
43
11,429
39,989
At 31 March 2023
26,611
-
75
10,754
37,440
At 31 March 2022
25,559
-
105
11,271
36,935
Cost:
Group
Included in freehold property is land with a book value of £8,519,000 (2023: £8,519,000) which is not depreciated.
The depreciation charge is included in the income statement as follows:
2024
2023
£’000
£’000
Cost of sales
1,871
1,711
Selling and distribution costs
939
852
Administrative expenses
204
210
3,014
2,773
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
70
Financial Statements
Notes forming part of the Group Accounts
JAMES LATHAM PLC ANNUAL REPORT 2024
71
13.2 Company
At 1 April 2022
407
Additions
200
Disposals
(338)
At 1 April 2023
269
Additions
8
Disposals
-
At 31 March 2024
277
Depreciation:
At 1 April 2022
359
Disposals
(329)
Charge for the year
18
At 1 April 2023
48
Disposals
-
Charge for the year
25
At 31 March 2024
73
Net book value
At 31 March 2024
204
At 31 March 2023
221
At 31 March 2022
48
Cost:
Plant, equipment and vehicles
£’000
14. Right of use assets and lease liabilities – Group
The Group has leases for some of its building which are made up of some of our depot locations and showrooms.
The vehicles are all car leases.
a) Right of use assets
The table below describes the nature of the Group’s leasing activities by type of right-of-use asset recognised in
the balance sheet.
Building
8
1-52 years
12 years
8 years
Vehicles
103
1-4 years
2 years
2 years
Range of
remaining
lease
Right-of-use assets
No of right-of
use assets leased
The review performed at the year end did not result in the impairment of the right-of-use assets.
Average
remaining
lease
Average
remaining
lease
2024
2023
14. Right of use assets and lease liabilities – Group (continued)
Additional information on right-of-use asset by class of assets is as follows:
Cost:
At 1 April 2022
6,447
1,421
7,868
1,499
64
1,563
Additions
2,570
325
2,895
-
-
-
Disposals (1,064) (302) (1,366)
-
-
-
At 1 April 2023
7,953
1,444
9,397
1,499
64
1,563
Additions
3,014
942
3,956
-
-
-
Disposals (2,277) (208) (2,485)
- (14) (14)
At 31 March 2024
8,690
2,178
10,868
1,499
50
1,549
Depreciation:
At 1 April 2022
2,635
1,079
3,714
49
29
78
Charge for the year
952
280
1,232
21
19
40
Disposals (1,064) (302) (1,366)
-
-
-
At 1 April 2023
2,523
1,057
3,580
70
48
118
Charge for the year
588
502
1,090
20
16
36
Disposals (1,957) (208) (2,165)
- (14) (14)
At 31 March 2024
1,154
1,351
2,505
90
50
140
Balance sheet value
At 31 March 2024
7,536
827
8,363
1,409
-
1,409
At 31 March 2023
5,430
387
5,817
1,429
16
1,445
At 31 March 2022
3,812
342
4,154
1,450
35
1,485
Total
£’000
Property
£’000
Vehicles
£’000
Group
Company
Total
£’000
Property
£’000
Vehicles
£’000
The depreciation charge is included in the income statement as follows:
Cost of sales
588
952
-
-
Selling and distribution costs
420
247
-
-
Administrative expenses
82
33
36
40
1,090
1,232
36
40
Group
2024
2023
2024
2023
£’000
£’000
£’000
£’000
Company
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
72
Financial Statements
Notes forming part of the Group Accounts
JAMES LATHAM PLC ANNUAL REPORT 2024
73
14. Right of use assets and lease liabilities – Group (continued)
The lease liabilities are secured by the related underlying assets. The undiscounted maturity analysis of lease
liabilities at 31 March 2024 is as follows:
Lease payments
1,719
1,240
2,812
3,628
1,211
10,610
7,467
Finance costs (346) (219) (493) (369) (512) (1,939) (1,458)
Net present values
1,373
1,021
2,319
3,259
699
8,671
6,009
Within
over
1 year
1-2 years
2-5 years 5-10 years
10 years
Total
Total
£’000
£’000
£’000
£’000
£’000
£’000
£’000
2024
2023
b) Lease liabilities
Lease liabilities are presented in the balance sheet as follows:
Current
1,373
879
75
84
Non-current
7,298
5,130
1,268
1,343
8,671
6,009
1,343
1,427
Group
2024
2023
2024
2023
£’000
£’000
£’000
£’000
Company
At 31 March 2024 the Group had committed to leases which had not yet commenced. The total future cash
outflows for leases that had not yet commenced were as follows:
A total of £1,190,000 (2023: £1,499,000) was paid during the year in respect of lease principal for the Group. A total
of £127,000 (2023: £131,000) was paid during the year in respect of lease principal for the Company. These figures
are reflected in the statement of cash flows within financing activities.
Vehicles
228
1,001
2024
2023
£’000
£’000
Lease payments
116
111
333
387
1,246
2,193
2,311
Finance costs (41) (38) (102) (123) (546) (850) (884)
Net present values
75
73
231
264
700
1,343
1,427
Within
over
1 year
1-2 years
2-5 years 5-10 years
10 years
Total
Total
£’000
£’000
£’000
£’000
£’000
£’000
£’000
2024
2023
Group
Company
Expense relating to short-term leases
129
138
2024
2023
£’000
£’000
Amounts recognised in the statement of profit and loss
The statement of profit and loss shows the following amounts relating to leases:
The net deferred tax asset/(liability) is made up of the following elements:
15. Deferred tax
15.1 Group
£’000
£’000
£’000
£’000
£’000
As at 1 April 2022 asset
154
-
-
-
154
As at 1 April 2022 liability
- (2,318) (1,876) (372) (4,566)
(Charge)/credit to the income statement (1,208)
- (837)
42 (2,003)
Charge to other comprehensive
income and equity (691)
- (12)
- (703)
At 31 March 2023 asset
-
-
-
-
0
At 31 March 2023 liability (1,745) (2,318) (2,725) (330) (7,118)
(Charge)/credit to the income statement (701)
- (101) 42 (760)
Charge to other comprehensive
income and equity (1,462)
-
-
- (1,462)
At 31 March 2024 asset
-
-
-
-
0
At 31 March 2024 liability (3,908) (2,318) (2,826) (288) (9,340)
Post-
employment
benefits
Roll over
gains on
assets
Other (*)
Total
* Includes accelerated capital allowances and industrial building allowances.
15.2 Company
£’000
£’000
£’000
At 1 April 2022
151 (22)
129
Charge to the income statement
(1,208) (17) (1,225)
Charge to other comprehensive income and equity
(691)
- (691)
At 31 March 2023
(1,748) (39) (1,787)
Charge to the income statement
(701)
3 (698)
Charge to other comprehensive income and equity
(1,462)
- (1,462)
At 31 March 2024
(3,911) (36) (3,947)
Post-
employment
benefits
Accelerated
capital
allowances
Total
Deferred tax has been calculated using rates that are expected to apply when the asset or liability is
expected to be realised or settled, based on rates that were substantively enacted at the balance sheet date.
The deferred tax asset/(liability) is made up as follows:
Intangible
assets
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
74
Financial Statements
Notes forming part of the Group Accounts
JAMES LATHAM PLC ANNUAL REPORT 2024
75
The inventories impairment charge for the year ended 31 March 2024 was £1,216,000 (2023: £856,000).
Impairment charges reversed during the year were £803,000 (2023: £725,000). The reversal of inventories arises
from sales in the year of the slow moving and obsolete stock previously provided for.
Inventories are pledged as securities against bank overdrafts (see note 19).
The company did not have any inventories at either 31 March 2024 or 31 March 2023.
2024
2023
£’000
£’000
Finished goods and goods for resale
63,255
68,627
Less: provisions for slow moving and obsolete inventories (1,546) (1,138)
61,709
67,489
16. Inventories – Group
17. Trade and other receivables
Trade receivables
58,729
61,439
17
6
Other receivables:
Other receivables
2,547
2,760
-
37
Amounts owed by subsidiaries
-
-
5,157
22
Prepayments
3,481
2,583
103
92
6,028
5,343
5,260
151
64,757
66,782
5,277
157
Prepayments
789
-
-
-
Group
2024
2023
2024
2023
£’000
£’000
£’000
£’000
Company
The directors consider that the carrying amount of trade and other receivables approximates their fair value.
There are no contract assets or contract liabilities other than trade receivables.
Trade receivables amounted to £58,729,000 (2023: £61,439,000), net of a provision of £308,000 (2023: £200,000)
for impairment. Movements on the group provisions for impairment were as follows:
At 1 April 2023
200
305
Provisions for receivables impairment
673
518
Receivables written off during the year as uncollectible
(565) (623)
At 31 March 2024
308
200
2024
2023
£’000
£’000
Group
Current
Non-current
The group has recognised an impairment against specifically identified expected credit losses (“ECLs”) at
year end of £308,000 (2023: £200,000). In line with the Group’s historical experience, and after consideration
of current credit exposures, the Group does not expect to incur any material ECL’s above those specifically
identified and so has not recognised any non-specific ECL’s in the current year (2023: £nil).
At 31 March 2024, £58,012,000 (2023: £60,552,000) of trade and other receivables were denominated in sterling,
£3,069,000 (2023: £3,485,000) were denominated in Euros and £195,000 (2023: £128,000) were denominated in
US dollars. The Company balances are all denominated in sterling.
Based on the balance sheet value of trade and other receivables, as shown above, a 10% change in the currency
exchange rate would lead to an increase or decrease in income and equity of £326,000 (2023: £361,000).
Amounts owed by subsidiaries are interest free and repayable on demand.
17. Trade and other receivables (continued)
The following table provides information about the exposure to credit risk and expected credit losses for
trade receivables as at 31 March 2024.
Current (not past due)
31,115
0.1%
40
34,538
0.1%
-
Days overdue:
1 - 30
21,773
0.2%
44
21,638
0.1%
-
31 - 60
5,034
0.8%
41
4,815
0.6%
-
61 - 90
461
9.4%
43
372
7.6%
-
More than 90
346
40.2%
140
276
32.7%
200
58,729
0.5%
308
61,639
0.3%
200
2024
£’000
2023
£’000
Trade
receivables
Loss rate
percentage
Expected
credit loss
Trade
receivables
Loss rate
percentage
Expected
credit loss
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
76
Financial Statements
Notes forming part of the Group Accounts
JAMES LATHAM PLC ANNUAL REPORT 2024
77
The loans and borrowings were all denominated in sterling.
The group would normally expect that sufficient cash is generated in the operating cycle to meet the
contractual cash flows.
The cumulative preference shares are held on an ongoing basis and pay dividends at 8% per annum.
Current liabilities
Bank overdraft
-
-
-
99
-
-
-
99
Non-current liabilities
Cumulative preference shares
of £1 each (note 21)
592
592
592
592
Total
592
592
592
592
Group
2024
2023
2024
2023
£’000
£’000
£’000
£’000
Company
19. Interest bearing loans and borrowings
Trade and other payables principally comprise amounts outstanding for trade purchases and ongoing costs.
The average credit period taken for trade purchases is 33 days (2023: 33 days). The directors consider that the
carrying amount of trade payables approximates to their fair value.
At 31 March 2024, £20,751,000 (2023: £28,613,000) of trade and other payables were denominated in sterling,
£1,492,000 (2023: £1,237,000) in US dollars, £1,145,000 (2023: £1,142,000) in Euros and £211,000 (2023: £nil) in
Canadian dollars. The company balances are all denominated in sterling.
Based on the balance sheet value of trade and other payables, as shown above, a 10% change in the currency
exchange rate would lead to an increase or decrease in income and equity of £285,000 (2023: £238,000).
Trade payables
21,219
25,745
4
80
Other taxation and social security
6,839
7,694
1,250
763
Amounts owed to subsidiaries
-
-
-
9
Other payables
2,380
5,247
237
771
Accruals and deferred income
5,018
2,380
314
149
35,456
41,066
1,805
1,772
Group
2024
2023
2024
2023
£’000
£’000
£’000
£’000
Company
18. Trade and other payables
2024
2023
£’000
£’000
Retirement surplus (note 20.2) (20,377) (14,960)
IFRIC 14 adjustment
4,513
7,739
Net defined benefit surplus after IFRIC 14 adjustment (15,864) (7,221)
20. Retirement and other benefit obligation
Group
The company has the legal right to benefit from any surplus on the winding up of the scheme. The IAS19
valuation at 31 March 2024 showed the scheme had an accounting surplus of £20,377,000. Under IFRIC 14, we
are required to consider how much of this surplus plus future committed deficit recovery contributions at the
reporting date will be recovered through a reduction of future contributions, or by refund of the surplus.
A restriction of 25% (2023: 35%) has been applied in respect of the authorised surplus payments charge that
would be withheld by the scheme on a repayment of a surplus. The surplus as shown above will benefit the
Company as both reduction of future contributions and a return of surplus, less taxation.
20.1. Pension schemes – Group and Company
James Latham plc operates a group contributory defined benefit pension scheme. The scheme is a funded
scheme. Benefits are provided based on earnings in the last twelve months before retirement, plus average
bonuses received over the last three years. The assets of the scheme are held separately from those of the
company. 25% (2023: 22%) of the assets are invested in equities, with 14% (2023: 12%) under passive management
by Blackrock and 11% (2023: 10%) in a Multi-Asset Credit fund managed by Wellington. 74% (2023: 78%) are
held in bonds and gilts, with 19% (2023: 19%) in a Buy and Maintain Fund managed by Mercers, 9% (2023: 9%) in
an Absolute Return Fund managed by Wellington and 38% (2023: 42%) in an Index Linked fund managed by
Blackrock, with the remaining 7% (2023: 8%) in a HLV Property Fund managed by Aviva. In 2023, there was also
1% (2023: nil) in cash.
The group contributory defined benefit pension scheme is closed to new entrants, and a defined contribution
group scheme has been established for the pension provision of all other employees, including those
contributing through auto enrolment.
The pension charge for the year for all schemes was £2,452,000 (2023: £2,587,000). Of the charge, £836,000
(2023: £487,000) is included in cost of sales, £1,186,000 (2023: £1,152,000) is included in selling and distribution
costs, and £430,000 (2023: £948,000) is included in administrative expenses in the income statement.
Contributions are determined by a qualified actuary on a basis of triennial valuations using the projected
unit funding method. The most recent available valuation was at 31 March 2023. The assumptions which have
the most significant effect on the results of the valuation are those relating to the discount rate and rate of
CPI inflation.
It was assumed in the 31 March 2023 valuation that the investment return would be 4.8% per annum for both
pre-retirement post-retirement, that the salary increases would average 4.4% per annum and that the present
and future pensions would increase at the rate of 4.4% per annum in respect of service to 1 January 1991.
Pensions accruing between 1 January 1991 and 28 February 1999 are required to increase at the greater of:
(a) 4%, and (b) 3% on the GMP and 5% on the excess over the GMP. Pensions accruing after 1 March 1999 increase
at Limited Price Indexation which has been assumed to average 2.4% in the future. Limited Price Indexation was
replaced by the Consumer Price Index (CPI) for payrises occurring after 1 January 2014.
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
78
Financial Statements
Notes forming part of the Group Accounts
JAMES LATHAM PLC ANNUAL REPORT 2024
79
20.2. Defined benefit scheme – Group and Company
The group operates a defined benefit pension scheme. The current practice of increasing pensions in line with
inflation is included in the measurement of the defined benefit obligation.
The defined benefit obligation of £48,043,000 (2023: £51,442,000) includes £13,150,000 (2023: £12,539,000) in
relation to active members, £9,701,000 (2023: £10,046,000) in relation to deferred members and £25,192,000
(2023: £28,857,000) in relation to members in retirement.
‘The retirement benefit asset recognised in the balance sheet is the present value of the defined benefit
obligations, less the fair value of the scheme assets, adjusted for the impact of IFRIC 14. Actuarial gains and
losses are immediately recognised in the statement of other comprehensive income.
2024
2023
£’000
£’000
Change in benefit obligation
Benefit obligation at beginning of year
51,442
68,534
Service cost
387
602
Interest cost
2,373
1,826
Actuarial gain arising from changes in financial assumptions (1,598) (18,196)
Actuarial gain arising from changes in demographic assumptions (1,924)
-
Actuarial (gains) losses arising from experience adjustments (336)
1,070
Benefits paid (2,289) (2,381)
Premiums paid (12) (13)
Benefit obligation at end of year
48,043
51,442
Analysis of defined benefit obligation
Schemes that are wholly or partly funded
48,043
51,442
Change in scheme assets
Fair value of scheme assets at beginning of year
66,402
75,527
Interest income
3,126
2,075
Return on plan assets (excluding interest income) (1,314) (13,854)
Employer contributions (incl. employer direct benefit payments)
2,507
5,048
Benefits paid from plan (2,289) (2,381)
Expenses paid (12) (13)
Fair value of scheme assets at end of year
68,420
66,402
Amounts recognised in the balance sheet
Present value of funded obligations
48,043
51,442
Fair value of scheme assets
68,420
66,402
Net defined surplus before IFRIC 14 adjustment (20,377) (14,960)
IFRIC 14 adjustment
4,513 7,739
Net defined benefit surplus after IFRIC 14 adjustment (15,864) (7,221)
2024
2023
£’000
£’000
Components of pension expense
Current service cost
387
602
Interest cost
2,373
1,826
Income on plan assets (3,126) (2,075)
Total pension expense recognised in the income statement (366)
353
Actuarial gain immediately recognised (284) (3,272)
IFRIC 14 adjustment (3,226)
1,865
Total recognised in the statement of other Comprehensive income (3,510) (1,407)
Cumulative amount of actuarial loss immediately recognised
4,480
7,990
2024
2023
£’000
£’000
Amounts included in the fair value of assets for
Equity instruments
9,760
7,723
Bond instruments
39,103
40,164
Property occupied
4,949
5,278
Diversified Credit Fund
14,013
13,030
Other assets used
595
207
68,420
66,402
2024
2023
Plan assets
The asset allocations at the year end were as follows:
Equities
14.3%
11.6%
Bonds
57.2%
60.5%
Property
7.2%
7.9%
Diversified Credit Fund
20.5%
19.7%
Other
0.8%
0.3%
100.0%
100.0%
20.2. Defined benefit scheme – Group and Company (continued)
2024
2023
£’000
£’000
Summary of Plan assets
Quoted assets
62,876
60,917
Unquoted assets
5,544
5,485
68,420
66,402
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
80
Financial Statements
Notes forming part of the Group Accounts
JAMES LATHAM PLC ANNUAL REPORT 2024
81
Maturity profile of obligations
The weighted average duration of the obligations of the defined benefit pension scheme is 13 years. At the
time of the most recent triennial valuation, 50% of the liabilities were in respect of members who were yet to
retire. At 31 March 2024, the youngest member of the scheme was 48 years old. It is therefore expected that
all members of the scheme will have retired in 17 years’ time.
Sensitivity analysis of the key assumptions
The main exposure of the defined benefit obligations relate to the volatility in the carrying value of the
assets and liabilities. The valuation of the scheme’s assets is dependant on the volatility of market conditions.
The valuation of the scheme’s liabilities is dependant on the assumptions used. The sensitivity of the valuation
of the liability to changes in the assumptions is shown in the table below:
20.2. Defined benefit scheme – Group and Company (continued)
2024
2023
Weighted average assumptions used to determine benefit obligations:
Discount rate
4.90%
4.70%
Rate of compensation increase
3.80%
3.90%
Inflation (RPI)
3.30%
3.30%
Inflation (CPI)
2.80%
2.90%
Rate of pension increases (CPI capped at 5%)
2.80%
2.90%
Weighted average life expectancy for mortality tables used to
determine benefit obligations:
Male member age 65 (current life expectancy)
21.2
22.4
Female member age 65 (current life expectancy)
23.7
24.5
Male member age 45 (life expectancy at age 65)
22.5
23.7
Female member age 45 (life expectancy at age 65)
25.2
25.8
Weighted average assumptions used to determine pension expense:
Discount rate
4.90%
4.70%
Rate of compensation increase
3.80%
3.90%
Impact on deficit
(Decrease)/increase
£’000
Discount rate increases by 0.25%
(1,369)
Inflation rate increases by 0.25%
793
Life expectancy increases by one year
1,585
History of plan assets and defined benefit obligation
2024
2023
2022
2021
2020
£’000
£’000
£’000
£’000
£’000
Present value of defined benefit obligation
48,043
51,442
68,534
71,364
69,995
Fair value of plan assets
68,420
66,402
75,527
68,803
58,183
Net (asset)/ liability before impact
of IFRIC 14
(20,377) (14,960) (6,993)
2,561
11,812
Contributions
The group expects to contribute £123,000 to the pension scheme for the year ending 31 March 2025.
2024
2023
£’000
£’000
Level 1:
Cash
595
207
Level 2:
Equities
9,760
7,723
Index-linked gilts
26,048
27,684
Total return fund
6,427
6,183
Multi-sector credit fund
7,586
6,847
Buy and maintain fund
13,055
12,480
Property funds
4,949
5,278
68,420
66,402
The major categories and fair values of scheme assets at the end of the reporting period for each category
are as follows:
20.2. Defined benefit scheme – Group and Company (continued)
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
82
20.3. Defined contribution pension payments
The group operates a defined contribution scheme managed by Aegon. The group has agreed to match
contributions by eligible employees up to a maximum of 7.5%.
Pension contributions paid to the defined contribution scheme for the year totalled £2,113,000 (2023: £1,787,000).
Financial Statements
Notes forming part of the Group Accounts
JAMES LATHAM PLC ANNUAL REPORT 2024
83
21. Share capital – Group and Company
Ordinary shares
Number
£’000
Number
£’000
Ordinary shares of 25 pence each
28,000,000
7,000
20,160,000
5,040
Authorised
2024, 2023 and 2023
Preference shares
8% Cumulative Preference Shares of £1 each
Number
£’000
Number
£’000
At 1 April 2022, 31 March 2023 and 2024
1,500,000
1,500
592,000
592
2024
2023
£’000
£’000
Share Capital
Ordinary share capital
5,040
5,040
5,040
5,040
The Preference shares are included in non-current liabilities (as interest bearing loans and borrowings).
See note 19.
The Cumulative Preference shares carry the right to receive an 8% dividend in priority to all other shares and
the right of a return on assets in priority to all other shares. They do not carry the right to further participate in
profits or assets, nor to vote at a General Meeting unless the resolution directly or adversely varies any of their
rights or privileges.
There were no movements in the Ordinary share capital of the company in either the year ended 31 March 2024
or 2023.
Issued
Authorised
Issued
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
84
Outstanding at beginning of year
92,633
8.95
246,071
7.68
Granted during the year
23,150
10.51
18,416
10.64
Forfeited during the year
(5,802) 8.69 (990)
7.27
Exercised during the year
(16,286)
6.54 (170,864)
7.32
Outstanding at the end of the year
93,695
9.77
92,633
8.95
Number
of share
options
Number
of share
options
Weighted
average
exercise
price (£)
Weighted
average
exercise
price (£)
2024
2023
Equity-settled share option schemes
Details of the share options outstanding
during the year are as follows:
22. Share-based payment – Group and Company
The weighted average share price for options exercised during the year was £11.74 (2023: £13.22).
Range of exercise prices
£6.26-£12.60
-
£12.10
£3.96-£12.60
£7.27
£12.15
Number of shares
84,859
-
8,836
80,959
5,738
5,936
Weighted average expected
remaining life (years)
3.0
-
1.0
3.0
-
1.5
SAYE
CSOP
2024
Details of the options outstanding at 31 March 2024 are shown below. 8,370 (2023: 10,439) of these options were
exercisable at the year end. No options expired during the periods covered by the above table.
The Black-Scholes option model is used to calculate the fair value of the options and the amount to be expensed.
No performance conditions apply to any of the share option schemes.
Details of the outstanding options at 31 March are as follows:
2023
DBP
SAYE
CSOP
DBP
CSOP
1,170
18.12.15
18.12.25
CSOP
1,857
06.12.16
06.12.26
CSOP
710
14.12.17
14.12.22
CSOP
4,633
03.01.19
03.01.29
CSOP
12,529
23.12.19
23.12.29
CSOP
16,146
16.12.20
16.12.30
CSOP
12,604
10.12.21
10.12.31
CSOP
14,960
20.12.22
20.12.32
CSOP
20,250
22.12.23
22.12.28
DBP
3,451
01.04.21
31.03.24
DBP
2,640
01.04.22
31.03.25
DBP
2,745
01.04.23
31.03.26
93,695
Number of
shares
Grant
date
Expiry
date
Financial Statements
Notes forming part of the Group Accounts
JAMES LATHAM PLC ANNUAL REPORT 2024
85
The investment in own shares represents 35,084 25p Ordinary shares (2023: 60,362 25p Ordinary shares) held on
behalf of the James Latham plc Employee Benefits Trust, a discretionary trust. This represents 0.15% (2023: 0.30%)
of the issued share capital. The maximum number of shares held during the year was 60,362 (0.15%). Dividends
have been waived and all income and expenditure of the trust has been dealt with through the group’s income
statement. None of these shares have been allocated to employees.
The own shares reserve was transferred to retained earnings at 31 March 2023.
At 1 April 2022
Cost
873
Transfer to employees
(1,397)
Transfer to retained earnings
524
At 31 March 2023
-
Transfer to employees
-
Transfer to retained earnings
-
At 31 March 2024
-
23. Own shares – Group and Company
Ordinary shares
£’000
Expected volatility was determined by calculating the historical volatility of the group’s share price over the
previous 3 years. The option life is based on options being exercised in accordance with usual patterns. Options
are forfeited if the employee leaves the group before options vest. For the CSOP scheme, the options can be
exercised up to 5 years after the vesting date, and with the SAYE scheme, this period is 6 months. The risk free
interest rate is based on 10 year UK Government Bonds.
The group recognised total expenses of £80,000 (2023: £182,000) related to equity settled share-based payment
transactions in the year.
Share Incentive Plan
The Company also runs an approved Share Incentive Plan in which eligible employees can buy Partnership
Shares at mid-market price on the date of the grant. The shares are held in the employee benefits trust for a
5-year period. The number of shares held in trust of this plan at 31 March 2024 was 168,583 (2023: 165,539).
Share price at grant date
£12.01
-
£12.10
£12.50
-
£12.15
Option exercise price
£12.01
-
-
£12.50
-
-
Expected volatility
37.0%
-
37.8%
37.0%
-
41.7%
Option life
5 years
-
3 years
5 years
-
3 years
Risk free interest rate
3.54%
-
3.14%
3.60%
-
1.61%
Fair value
£4.59
-
-
£4.79
-
-
SAYE
2024
2023
The inputs into the Black-Scholes model, expressed as weighted averages for options granted during the year
are as follows:
CSOP
DBP
SAYE
CSOP
DBP
22. Share-based payment – Group and Company (continued)
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
86
2024
2023
2024
2023
£’000
£’000
£’000
£’000
Profit before tax
30,262
44,511
16,860
7,862
Finance income and expense (4,119) (813) (157) (251)
Dividend received
-
- (16,500) (8,500)
Depreciation and amortisation
4,271
4,173
61
58
Impairment
-
179
-
-
(Profit)/loss on disposal of property,
plant and equipment 35 (46)
-
9
Decrease in inventories
5,780 6,741
-
-
Decrease/(increase) in receivables
1,236
1,550 (5,118)
1,454
(Decrease)/Increase in payables (5,862) (9,547)
33
29
Retirement benefits (2,120) (4,446) (2,120) (4,446)
Share-based payments non cash amounts
80
182
80
182
Cash generated from/(used in) operations
29,563
42,484 (6,861) (3,603)
Group
Company
24. Cash generated from/(used in) operations
Movement in net funds/(debt)
£’000
£’000
£’000
£’000
At 1 April 2022
37,030 (4,408) (592)
32,030
Additions in the year
- (2,895)
- (2,895)
Cash flow
25,579
1,499
-
27,078
Discount unwind on lease liabilities
- (205)
- (205)
At 31 March 2023
62,609 (6,009) (592) 56,008
Additions in the year
- (3,956)
- (3,956)
Cash flow
13,272
1,190
-
14,462
Discount unwind on lease liabilities
- 104
-
104
At 31 March 2024
75,881 (8,671) (592)
66,618
Cash and cash
equivalents
Leases
Total
Preference
shares
Restated
Restated
The additions in the year are £942,000 in new vehicle leases and £3,014,000 in respect of a new property lease.
Financial Statements
Notes forming part of the Group Accounts
JAMES LATHAM PLC ANNUAL REPORT 2024
87
26. Capital commitments
At 31 March 2024, there were capital commitments contracted for but not provided in the accounts of £2,164,000
(2023: £4,758,000).
25. Related party transactions
25.1 Group
The group has a related party relationship with its subsidiaries and with its directors. Transactions between group
companies, which are related parties, have been eliminated on consolidation and are not disclosed in this note.
The remuneration of the key management of the group, who are the Company’s directors, is set out below.
There are 4 (2023: 4) directors to whom retirement benefits are accruing under defined benefit schemes, and 4
(2023: 4) directors that exercised share options during the year.
Emoluments for the highest paid director totalled £279,000 (2023: £350,000). The highest paid director
exercised 718 CSOP share options during the year at a gain of £3,942. The highest paid director had an accrued
defined benefit pension of £93,000 (2023: £81,000) at the balance sheet date.
The remuneration of the key management of the group, who are the company’s directors is set out above and
shown in the Directors’ Remuneration Report on pages 40 to 43. The gain made by directors who exercised share
options during the year was £16,000 (2023: £55,000).
25.2 Company
The company undertakes the following transactions with the active subsidiary companies:
• Receiving an annual management charge to cover services provided of £3,627,000 (2023: £3,288,000).
• Corporation tax for the Parent and Subsidiary is paid through the parent company and recharged to the
subsidiary. The timing of the repayment will affect the balances outstanding.
Details of balances outstanding with subsidiary companies are shown in Notes 17 and 18.
Other than the payment of remuneration and dividends, there have been no related party transactions with
the directors.
2024
2023
£’000
£’000
Salaries and other short-term employee benefits
1,092
1,347
Social security costs
184
186
Pension costs
229
230
Share-based payment
35
35
1,540
1,798
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
88
COMPANY
Between
Between
Less than
6 months
1 and
More than
6 months
and 1 year
5 years
5 years
Total
£’000
£’000
£’000
£’000
£’000
2024
Trade payables
4
-
-
-
4
Accruals
314
-
-
-
314
Other payables
237
-
-
-
237
Lease liabilities
116
-
444
1,633
2,193
Total
671
-
444
1,633
2,748
2023
Trade payables
80
-
-
-
80
Accruals
149
-
-
-
149
Amounts owed to subsidiaries
9
-
-
-
9
Other payables
771
-
-
-
771
Lease liabilities
64
63
466
1,718
2,311
Total
1,073
63
466
1,718
3,320
The group and company’s activities expose the group to a number of risks including market risk (foreign
currency risk and interest rate risk), credit risk and liquidity risk. These risks are managed through an effective risk
management programme. Further details are set out in the Financial Review on pages 31 to 34.
Maturity analysis
The table below analyses the financial liabilities on a contractual gross undiscounted cash flow basis into maturity
groupings based on period outstanding at the balance sheet date up to the contractual maturity date.
27. Financial instruments
GROUP
Between
Between
Less than
6 months
1 and
More than
6 months
and 1 year
5 years
5 years
Total
£’000
£’000
£’000
£’000
£’000
2024
Trade payables
21,219
-
-
-
21,219
Accruals
5,018
-
-
-
5,018
Other payables
2,380
-
-
-
2,380
Lease liabilities
1,171
548
4,052
4,839
10,610
Total
29,788
548
4,052
4,839
39,227
2023
Trade payables
25,745
-
-
-
25,745
Accruals
2,380
-
-
-
2,380
Other payables
5,247
-
-
-
5,247
Lease liabilities
523
523
2,423
3,998
7,467
Total
33,895
523
2,423
3,998
40,839
Preference shares are excluded from the table above as they are irredeemable. Contractual payments due
within one year for these liabilities for both the Group and Company are £48,000, with £48,000 due between
1-2 years and £144,000 due between 2-5 years. The amounts due after 5 years cannot be quantified as the
liabilities are irredeemable.
Financial Statements
Notes forming part of the Group Accounts
JAMES LATHAM PLC ANNUAL REPORT 2024
89
27. Financial instruments (continued)
Foreign currency risk
Approximately 39% of the group’s purchases are denominated in foreign currencies, principally the US dollar and
the Euro. Forward contracts are used where we have agreed exchange rates with our customers and we also use
other currency derivatives to help manage our short term exposure on a weakening sterling from time to time.
However, no more than 30% of the currency requirements will be covered by forward contracts or other currency
derivatives. At the year ended 31 March 2024 and 2023, no fair value adjustments have been made in connection
with the outstanding foreign currency contracts as the adjustment required is immaterial.
Whilst purchases in foreign currencies are a significant figure, fluctuations in currency exchange rates do not
have a major impact on the results. As the group trades mainly in the UK, the market price of our products tends
to fluctuate in line with spot prices.
Included in group cash and cash equivalents at 31 March 2024 was £27,000 in US Dollars (2023: £455,000),
£620,000 in Euros (2023: £896,000) and £49,000 in Canadian dollars (2023: £29,000) at variable interest rates.
Based on the balance sheet value of cash and cash equivalents, as shown above, a 10% change in the currency
exchange rate would lead to an increase or decrease in income and equity of £70,000 (2023: £138,000).
There is no foreign currency held in the company accounts.
Interest rate risk
The interest rate exposure arises mainly from its interest bearing deposits. Deposits held at floating rates expose
the entity to cash flow risk whilst deposits held at fixed rate expose the entity to fair value risk.
At the reporting date, the interest rate profile of the group’s interest-bearing financial instruments was:
Interest rate risk is limited to the cash and cash equivalents, bank overdraft and bank loans.
Based on the balance sheet value of cash and cash equivalents, bank overdraft and bank loans, as shown
above, a 1% change in interest base rates would lead to an increase or decrease in income and equity of
£759,000 (2023: £626,000) in the group and an increase or decrease in income and equity of £31,000
(2023: £1,000) in the company.
2024
2023
2024
2023
£’000
£’000
£’000
£’000
Fixed rate instruments
Cumulative preference shares of £1 each 592
592
592
592
Variable rate instruments
Cash and cash equivalents
75,881
62,609
3,137
203
Bank overdraft
-
-
-
99
Group Company
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
90
27. Financial instruments (continued)
Liquidity risk
The group closely monitors its cash position to ensure that it has sufficient funds to meet the obligations of the
group as they fall due. Short term bank deposits are executed only with organisations with a long term rating of
at least A- from the major rating agencies.
The following table shows the financial liabilities measured at amortised cost:
Credit risk exposure
Credit risk arises on our trade receivables and cash and cash equivalents. Credit exposure is managed on a group
basis taking into account economic conditions and availability of credit insurance, and appropriate credit limits
are set for each customer taking into account credit reports received from outside agencies, and previous credit
history. Credit insurance is taken out to cover approved individual debtors with balances over £40,000. Where
limits are required above £40,000 that cannot be backed by insurance, a sub-committee of the board will review
reports on the customer, and agree additional limits if appropriate. Bad debts are a minimal figure of sales
this year and prior year, compared with our target of 0.4%. Under IFRS 9 the Group has applied the Simplified
Approach applying a provision matrix based on number of days past due to measure lifetime expected credit
losses and after taking into account customer sectors with different credit risk profiles and current and forecast
trading conditions. Bad debts are provided for debts overdue by more than 120 days, or if we have received
official paperwork. Debtors are written off when we have either received official paperwork that the customer is
no longer trading or have exhausted all avenues of recovery. The carrying amount of financial assets recorded in
the accounts, which is net of impairment losses, represents the maximum exposure to credit risk. The maximum
exposure to credit risk at the reporting date was:
2024
2023
2024
2023
£’000
£’000
£’000
£’000
Trade receivables
58,729
61,439
17
6
Other receivables
2,547
2,760
-
37
Amounts owed by subsidiaries
-
-
5,157
22
Cash and cash equivalents
75,881
62,609
3,137
203
Total
137,157
126,808
8,311
268
Group Company
Financial assets measured
at amortised cost
2024
2023
2024
2023
£’000
£’000
£’000
£’000
Trade payables
21,219
25,745
4
80
Other payables
2,380
5,247
237
771
Amounts owed to subsidiaries
-
-
-
9
Accruals
5,018
2,380
314
149
Bank overdraft
-
-
-
99
Total
28,617
33,372
555
1,108
Capital management
The group manages its capital risk by ensuring that its capital, which represents share capital, retained
earnings, investments in own shares and cash, is sufficient to support the ongoing needs of the business, and
is organised to try and minimise the cost of capital over the medium term. The group’s current strategy is to
maintain sufficient cash balances to satisfy ongoing needs.
Group Company
Financial Statements
Notes forming part of the Group Accounts
JAMES LATHAM PLC ANNUAL REPORT 2024
91
28. Prior year adjustment
In March 2024, the Financial Reporting Council (“FRC”) submitted a request for further information on the
Group’s Annual Report and Accounts for the year ended 31 March 2023. The review conducted by the FRC was
based solely on the Group’s published Annual Report and Accounts and does not provide assurance that the
Annual Report and Accounts are correct in all material respects; the FRC’s role is not to verify the information
provided but to consider compliance with reporting requirements.
Following completion of this review, the directors have concluded that the cash receipt on exercise of share
options in the year ended 31 March 2023 would be better categorised as a cash flow from financing activities
rather than, as previously treated, as an operating cash flow. Accordingly, in order to reflect these transactions in
full compliance with IAS 7 Statement of cash flows, the consolidated and company cash flow statement for the
year ended 31 March 2023 and its supporting note 24 has been restated to reflect this.
As part of the FRC review, under IFRS 7 ‘Financial instruments: disclosures’ the set off arrangement of the bank
accounts was highlighted. On further investigation, the directors have concluded that the overdraft in the
company accounts should be shown separately under current liabilites rather than set off against the other bank
balances. The parent company balance sheet has been adjusted accordingly.
These restatements have no impact on revenue, operating profit, profit before tax, basic and diluted earnings per
share or net assets.
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
92
2023
2023
(originally presented)
Adjustment (restated)
£’000
£’000
£’000
ASSETS
Non-current assets
Investments
9,613
-
9,613
Property, plant and equipment
221
-
221
Right-of-use-assets
1,445
-
1,445
Retirement benefit surplus
7,221
-
7,221
Total non-current assets
18,500
-
18,500
Current assets
Trade and other receivables
157
-
157
Cash and cash equivalents
104
99
203
Tax receivable
1,014
-
1,014
Total current assets
1,275
99
1,374
Total assets
19,775
99
19,874
Current liabilities
Lease liabilities
84
-
84
Trade and other payables
1,772
-
1,772
Interest bearing loans and borrowings
-
99
99
Total current liabilities
1,856
99
1,955
Non-current liabilities
Interest bearing loans and borrowings
592
-
592
Lease liabilities
1,343
-
1,343
Deferred tax liabilities
1,787
-
1,787
Total non-current liabilities
3,722
-
3,722
Total liabilities
5,578
99
5,677
Net assets
14,197
-
14,197
Capital and reserves
Issued capital
5,040
- 5,040
Share-based payment reserve
124
-
124
Capital reserve
395
-
395
Retained earnings
8,638
-
8,638
Total equity attributable to equity
shareholders of the parent company
14,197
-
14,197
28. Prior year adjustment (continued)
As a result, the company balance sheet as at 31 March 2023 has been restated as follows:
Financial Statements
Notes forming part of the Group Accounts
JAMES LATHAM PLC ANNUAL REPORT 2024
93
2023
2023
(originally presented)
Adjustment (restated)
£’000
£’000
£’000
Net cash flow from operating activities
Cash generated from operations
43,864 (1,380) 42,484
Interest paid (53)
- (53)
Income tax paid (7,498)
- (7,498)
Net cash inflow from operating activities
36,313 (1,380)
34,933
Cash flows from investing activities
Interest received and similar income
822
-
822
Purchase of property, plant and equipment (3,304)
- (3,304)
Proceeds from sale of property, plant and equipment
72
-
72
Net cash outflow from investing activities (2,410)
- (2,410)
Cash flows from financing activities
Exercise of share options
-
1,380
1,380
Lease liability payments (1,499)
- (1,499)
Equity dividends paid (6,825)
- (6,825)
Net cash outflow from financing activities (8,324)
1,380 (6,944)
Increase in cash and cash equivalents for the year
25,579
-
25,579
Cash and cash equivalents at beginning of year
37,030
-
37,030
Cash and cash equivalents at end of year
62,609
-
62,609
Balance sheet cash and cash equivalents
62,609
- 62,609
Bank overdraft in current liabilities (note 19)
-
-
-
Cash and cash equivalents at end of year
62,609
-
62,609
28. Prior year adjustment (continued)
The consolidated and company cash flow statement for the year ended 31 March 2023 has been restated as follows:
GROUP
Notes forming part of the Group Accounts
Financial Statements
JAMES LATHAM PLC ANNUAL REPORT 2024
94
2023
2023
(originally presented)
Adjustment (restated)
£’000
£’000
£’000
Net cash flow from operating activities
Cash generated used in operations
(2,223) (1,380) (3,603)
Interest paid (48)
- (48)
Income tax paid 1,717
- 1,717
Net cash outflow from operating activities (554) (1,380) (1,934)
Cash flows from investing activities
Interest received and similar income
46
-
46
Dividend received
8,500
- 8,500
Purchase of property, plant and equipment (200)
- (200)
Net cash inflow from investing activities 8,346
- 8,346
Cash flows from financing activities
Exercise of share options
-
1,380
1,380
Lease liability payments (131)
- (131)
Equity dividends paid (6,825)
- (6,825)
Net cash outflow from financing activities (6,956)
1,380 (5,576)
Increase in cash and cash equivalents for the year
836
-
836
Cash and cash equivalents at beginning of year (732)
- (732)
Cash and cash equivalents at end of year
104
-
104
Balance sheet cash and cash equivalents
104
99
203
Bank overdraft in current liabilities (note 19)
- (99) (99)
Cash and cash equivalents at end of year
104
-
104
28. Prior year adjustment (continued)
COMPANY
The cash flow note to the accounts has also been restated. The restated figures can be seen in note 24.
JAMES LATHAM PLC ANNUAL REPORT 2024
95
2023
2023
(originally presented)
Adjustment (restated)
£’000
£’000
£’000
Profit before tax
44,511
-
44,511
Finance income and expense (813)
- (813)
Depreciation and amortisation
4,173
- 4,173
Impairment
179
-
179
Profit on disposal of property, plant and equipment (46)
- (46)
Decrease in inventories
6,741
- 6,741
Decrease in receivables
1,550
- 1,550
Increase in payables (8,167) (1,380) (9,547)
Retirement benefits (4,446)
- (4,446)
Share-based payments non cash amounts
182
-
182
Cash generated from operations
43,864 (1,380)
42,484
28. Prior year adjustment (continued)
GROUP
Financial Statements
Notes forming part of the Group Accounts
2023
2023
(originally presented)
Adjustment (restated)
£’000
£’000
£’000
Profit before tax
7,862
-
7,862
Finance income and expense (2) (249) (251)
Dividend received (8,500)
- (8,500)
Depreciation and amortisation 58
-
58
Loss on disposal of property, plant and equipment
9
-
9
Decrease in receivables
1,454
- 1,454
Increase in payables 1,160 (1,131)
29
Retirement benefits (4,446)
- (4,446)
Share-based payments non cash amounts
182
-
182
Cash generated used in operations
(2,223) (1,380) (3,603)
COMPANY
JAMES LATHAM PLC ANNUAL REPORT 2024
96
Notice is hereby given that the one hundred and
twenty fifth Annual General Meeting of the Company
will be held at the Leverstock Suite, Holiday Inn,
Breakspear Way, Hemel Hempstead, Hertfordshire,
HP2 4UA on Wednesday 21st August 2024 at 12.30pm.
Resolutions 1 to 8 inclusive will be proposed as ordinary
resolutions, and resolutions 9 and 10 will be proposed
as special resolutions.
Ordinary business
1. To receive and adopt the Directors’ Report and
Accounts for the year ended 31 March 2024 together
with the Independent Auditor’s report thereon.
2. To declare the final dividend recommended by the
directors on the ordinary shares of the Company.
3. To re-elect Fabian French as a director, who retires
by rotation.
4. To re-elect Paula Kerrigan as a director, who retires
by rotation.
5. To re-elect David Dunmow as a director, who retires
by rotation.
6. To re-elect Andrew Wright as a director, who retires
by rotation.
7. To re-appoint RSM UK Audit LLP, Chartered
Accountants, as auditors to hold office from the
conclusion of the meeting to the conclusion of the
next meeting at which accounts are laid before the
Company, at a remuneration to be determined by
the directors.
Other business
8. Directors authority to allot shares: To consider, and
if thought fit, pass the following resolution: “THAT in
substitution for all existing authorities, to the extent
unused, the directors be and they are generally and
unconditionally authorised for the purposes of section
551 of the Companies Act 2006 to exercise all the
powers of the Company to allot equity securities up
to an aggregate nominal amount of £1,680,000
provided that this authority shall expire at the earlier
of the conclusion of the Company’s next Annual
General Meeting or 15 months from the date of the
passing of this resolution and that the Company
may before such expiry make offers or agreements
which would or might require relevant securities
to be allotted after such expiry and the Directors
may allot relevant securities in pursuance of such
offers or agreements notwithstanding that the
authority conferred has expired. The expression
‘equity securities’ and ‘allotment’ shall bear the same
meanings respectively given to the same in section
560 Companies Act 2006.”
9. Disapplication of pre-emption rights: To consider,
and if thought fit, pass the following resolution:
“THAT subject to the passing of the previous
Resolution 8, pursuant to section 571 of the
Companies Act 2006, section 561 of the Companies
Act 2006 shall not apply to any allotment or
agreement to allot equity securities pursuant to the
authority conferred by Resolution 9:
(a) this power shall be limited to:
(i) the allotment of equity securities in connection
with or subject to an offer or invitation, open for
acceptance for a period fixed by the Directors,
to the holders of Ordinary Shares on the register
on a fixed record date in proportion (as nearly
as maybe) to their respective holdings or in
accordance with the rights attached thereto
(including equity securities which, in connection
with such offer or invitation, are the subject of
such exclusions or other arrangements as the
Directors may deem necessary or expedient
to deal with the fractional entitlements which
would otherwise arise or with legal or practical
problems under the laws of, or the requirements
of any recognised regulatory body or any stock
exchange in any territory or otherwise how so
ever); and
(ii) other than pursuant to paragraph (a)(i) of this
Resolution, the allotments of equity securities
for cash up to an aggregate nominal amount of
£252,000; and
(b) this power shall expire at the earlier of the
conclusion of the next Annual General Meeting
of the Company or 15 months from the date after
passing of this Resolution except that the
Directors may allot equity securities under
this power after that date to satisfy an offer or
agreement made before this power expired.”
Notice of Annual General Meeting
JAMES LATHAM PLC ANNUAL REPORT 2024
97
Notice of Annual General Meeting
10. Authority of the Company to purchase its own
shares: To consider and, if thought fit, pass the
following resolution: “THAT the Company be and is
generally and unconditionally authorised to make
one or more market purchases (within the meaning
of section 693 (4) of the Companies Act 2006) of its
Ordinary Shares of 25p each provided that:
(a) the maximum aggregate number of Ordinary
Shares which may be purchased is 2,016,000
(representing 10% of the issued share capital of
the Company);
(b) the price at which Ordinary Shares may be
purchased shall not be more than 105% of the
average of the closing middle market price for
the Ordinary Shares as derived from the AIM
section of the London Stock Exchange Daily
Official List for the five business days preceding
the date of purchase and shall not be less than
25p per Ordinary Share (in both cases exclusive of
expenses); and
(c) this power shall expire at the earlier of the
conclusion of the next Annual General Meeting of
the Company or 15 months from the date of the
passing of this resolution.”
By order of the Board
D.A. Dunmow
Company Secretary
Registered Office:
Unit C2, Breakspear Park, Breakspear Way,
Hemel Hempstead, Hertfordshire, HP2 4TZ
8 July 2024
Notes:
The Report and Accounts are sent to all members of the
Company who elect to receive a paper copy, or is available
on the Investor page at www.lathamtimber.co.uk.
Holders of preference shares are not entitled to be
present, either personally or by proxy, or to vote at
any general meeting so long as the dividends on
such preference shares are regularly paid or unless
a resolution is to be proposed for winding up the
Company, reducing its capital or selling its undertaking
or adversely affecting the rights of the holders of
preference shares.
A member entitled to attend and vote at the above
Meeting is entitled to appoint one or more proxies
to attend, speak and vote on his/her behalf. A proxy
need not be a member of the Company. A Form of
Proxy, which may be used to make such appointment
and to give proxy instructions, accompanies this Notice.
To appoint more than one proxy, (an) additional
Form(s) of Proxy may be obtained by contacting the
Shareholder Helpline on 0370 707 1093 or you may
photocopy the Form of Proxy. Calls to the Shareholder
Helpline number are charged at the standard rate per
minute plus network extras. Overseas holders should
contact +44 (0)370 707 1093. Lines are open from
8.00am to 5.30pm (GMT) Monday to Friday, excluding
UK public holidays.
Any corporation which is a member can appoint one or
more corporate representatives who may exercise on its
behalf all of its powers as a member provided that they
do not do so in relation to the same shares.
To be valid, the enclosed Form of Proxy and any power
of attorney or other authority (if any) under which it is
signed or a notarially certified copy thereof, must be
completed and returned so as to be received by the
Company’s registrars, Computershare Investor Services
plc, The Pavilions, Bridgwater Road, Bristol BS99 6ZY
not less than 48 hours (excluding non-working days)
before the time fixed for the holding of the meeting
or, in the event that the meeting is adjourned, any
adjourned meeting.
Shareholders may appoint a proxy electronically by
visiting www.investorcentre.co.uk/eproxy. You will
be asked to enter the Control Number, Shareholder
Reference Number (SRN), and PIN shown on your
Form of Proxy and agree to certain terms and
conditions. To be valid, your proxy appointment and
instructions should reach Computershare no later than
12.30pm. on Monday 19 August 2024.
CREST members who wish to appoint a proxy or proxies
through the CREST electronic proxy appointment service
may do so for this meeting and any adjournment(s)
thereof by using the procedures described in the
CREST Manual (available via www.euroclear.com).
CREST personal members or other CREST sponsored
members, and those CREST members who have
appointed a voting service provider(s), should refer to
their CREST sponsor or voting service provider(s), who
will be able to take the appropriate action on their behalf.
In order for a proxy appointment or instruction
made by means of the CREST service to be valid,
the appropriate CREST message (a “CREST Proxy
Instruction”) must be properly authenticated in
accordance with Euroclear UK & International
Limited’s (‘Euroclear’) specifications and must contain
the information required for such instructions,
as described in the CREST Manual. The message,
regardless of whether it constitutes the appointment
of a proxy or is an amendment to the instruction
given to a previously appointed proxy must, in order
to be valid, be transmitted so as to be received by the
Company’s agent (ID 3RA50) by the latest time for proxy
appointments set out in previous notes above. For this
purpose, the time of receipt will be taken to be the
time (as determined by the timestamp applied to the
message by the CREST Applications Host) from which
the Company’s agent is able to retrieve the message by
enquiry to CREST in the manner prescribed by CREST.
After this time any change of instructions to proxies
appointed through CREST should be communicated
to the appointee through other means.
CREST members and, where applicable, their CREST
sponsors or voting service providers should note that
Euroclear does not make available special procedures
in CREST for any particular messages. Normal system
timings and limitations will therefore apply in relation
to the input of CREST Proxy Instructions. It is the
responsibility of the CREST member concerned to take
(or, if the CREST member is a CREST personal member
or sponsored member or has appointed a voting
service provider(s), to procure that his CREST sponsor
or voting service provider(s) take(s)) such action as shall
be necessary to ensure that a message is transmitted
by means of the CREST system by any particular time.
In this connection, CREST members and, where
applicable, their CREST sponsors or voting service
providers are referred, in particular, to those sections
of the CREST Manual concerning practical limitations
of the CREST system and timings. The Company
may treat as invalid a CREST Proxy Instruction in the
circumstances set out in Regulation 35(5)(a) of the
Uncertificated Securities Regulations 2001.
Copies of directors’ contracts of service, the register of
interests of directors, the Company’s memorandum
of association and the articles of association will be
available for inspection at the Registered Office during
normal business hours from the date of the above notice
until the close of the meeting.
In accordance with Regulation 41 of the Uncertified
Securities Regulations 2001, only those members
eligible to vote and entered on the Company’s register
of members as at 6.00pm on Monday 19th August 2024
are entitled to attend and vote at the meeting; or, if
the meeting is adjourned, shareholders entered on the
Company’s register of members not later than 48 hours
(excluding non-working days) before the time fixed for
the adjourned meeting shall be entitled to attend and
vote at the adjourned meeting.
At 26 June 2024, the Company’s issued share capital
consisted of 20,160,000 shares. The total number of
voting rights are therefore 20,160,000.
In the case of joint holders, the vote of the senior who
tenders a vote will be accepted to the exclusion of
the votes of the other joint holders. For this purpose,
seniority is determined by the order in which the names
are stated in the register of members of the Company in
respect of the joint holding.
Share dealing service for shareholders
We operate a share dealing services with our registrar,
Computershare Investor Services PLC, please view all
dealing options at www.computershare.com/dealing/uk
which provides shareholders with a simple way to sell or
purchase shares (subject to availability) on the London
Stock Exchange. Real time trading is available during
market hours (08.00 to 16.30 Monday to Friday excluding
bank holidays). In addition, you can place a sale
instruction outside of market hours. The commission is
1.4% subject to a minimum of £40. Before you can sell
your shares online, you will need to become a member
of Computershare’s Investor Centre.
Where this has been received in a country where the
provision of such a service would be contrary to local laws
or regulations, this should be treated as information only.
JAMES LATHAM PLC ANNUAL REPORT 2024
98
Notice of Annual General Meeting
JAMES LATHAM PLC ANNUAL REPORT 2024
99
Notice of Annual General Meeting
Under section 319A of the Companies Act, any
Shareholder attending the AGM has the right to ask
questions at the AGM relating to the business of the
AGM. The Company must cause to be answered any
such question relating to the business being dealt with
at the AGM but no such answer need be given if: (a)
to do so would interfere unduly with the preparation
for the AGM or involve the disclosure of confidential
information; (b) the answer has already been given on a
website in the form of an answer to a question; or (c) it is
undesirable in the interests of the Company or the good
order of the AGM that the question be answered.
Please keep your questions and statements short and
relevant to the business of the AGM to allow everyone
who wishes to speak the chance to do so. It would be
helpful if you could state your name before you ask your
question. The Chair may nominate a representative to
answer a specific question after the AGM or refer the
question to the Company’s website.
Your personal data includes all data provided by you,
or on your behalf, which relates to you as a shareholder,
including your name and contact details, the votes you
cast and your reference number (as attributed to you by
the Company or its registrars). The Company determines
the purposes for which, and the manner in which, your
personal data is to be processed. The Company and
any third party to which it discloses the data (including
the Company’s registrars) may process your personal
data for the purposes of compiling and updating the
Company’s records, fulfilling its legal obligations and
processing the shareholder rights you exercise.
You may not use any electronic address (within the
meaning of section 333(4) of the Companies Act 2006)
provided in this Notice or in any related documents
(including the Form of Proxy and the Annual Report and
Financial Statements) to communicate with the Company
for any purposes other than those expressly stated.
JAMES LATHAM PLC ANNUAL REPORT 2024
100
Notes
JAMES LATHAM PLC
Unit C2, Breakspear Park, Breakspear Way, Hemel Hempstead, Hertfordshire, HP2 4TZ
Telephone 01442 849100 Email: plc@lathams.co.uk
www.lathamtimber.co.uk