James Latham (LTHM) H2 2026 earnings summary

Executive summary

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

• Profit before tax rose to £25.1m from £24.3m, and profit after tax reached £18.6m, up from £18.1m.

• Earnings per share grew to 92.5p from 90.1p, and net assets increased to £232.3m.

• Improved trading conditions and operational efficiency contributed to performance, despite economic challenges.

Financial highlights

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

• Operating profit was £22.0m, up from £20.2m year-over-year.

• Cash and cash equivalents at year-end were £51.2m, down from £65.5m, reflecting investment and dividend payments.

• Inventory levels rose to £72.9m from £65.7m, and trade receivables increased by £5.8m.

• Bad debts remained low at 0.10% of revenues.

Outlook and guidance

• Trading momentum from Q4 2026 has continued into the new year, with slight margin and volume improvements.

• 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 the Strait of Hormuz remains disrupted.

• Customer demand is mixed, with some sectors strong and others quieter.