James Latham (LTHM) H2 2026 earnings summary

Executive summary

• Revenue rose 7.2% year-over-year to £393.0m, with like-for-like volumes up 7.7%.

• Net profit attributable to shareholders increased 2.5% to £18.6m, and EPS grew to 92.5p.

• Gross profit margin slightly decreased to 16.5% from 16.8% due to competitive pressures and product mix.

• Cash and cash equivalents remain strong at £51.2m, despite a 25.9% decrease due to capital investments.

• The National Distribution Centre project is progressing on schedule, with £45m budgeted and completion expected by end of 2026.

Financial highlights

• Operating profit increased to £22.0m from £20.2m year-over-year.

• Profit before tax rose to £25.1m (2025: £24.3m).

• Total dividend per share increased to 36.70p, covered 2.5 times by earnings.

• Net assets grew to £232.3m, up from £220.5m.

• Return on capital employed was 9.5%.

Outlook and guidance

• Trading momentum from Q4 2026 has continued into the new year, with improved margins and volumes.

• Supplier price increases are expected due to higher energy and freight costs linked to Middle East conflict.

• No current supply issues, but potential risks if geopolitical tensions persist.

• National Distribution Centre expected to be fully operational by end of 2027.