James Latham reports strong sales of timber and panels

James Latham reported strong sales for the first four months of its financial year and said it was ready for a period of greater uncertainty.

In the period from April to July, the timber and panels supplier’s sales per working day were 9.1% higher than a year earlier, the company said in a statement before its annual meeting. Cost prices of products have risen, helping revenue but putting some pressure on margins, which were "slightly lower" than the second half of last year.

Volumes increased through the company’s warehouses and direct with most of the increases in panel products. Demand for timber and panels is strong, including for added value timber products, melamines and doors.

The statement appeared to show a slight slowdown during the period. In June James Latham said sales in April and May were up 9.8% and margins were “very slightly lower” than the second half of 2017/18.

The company said: “We know we are entering a period with more uncertainty and greater competitive and market pressure. We remain positive that we can meet the challenges ahead and continue to grow our business."

The AIM-traded company's shares rose 5.2% to 705p at 12:40 BST.