 profits likely to be down this year, market said to be competitive, competitor IDS and others went bust and its stock flooded the market, most probably no special dividend, African Sapele being dumped in the UK, birchwood supplies from Russia for plywood cut off, construction market and housebuilding showing no pick-up, illiquid stock, virtually no broker coverage, keeps a low profile,limited institutional interest, as a distributor unlikely ever to command a high multiple.
BUT family owned, massive cash balance at over 30% of market cap, extremely conservatively valued assets and conservatively run,nationwide coverage extending to Southern Ireland, except northern Scotland and maybe the Hebrides, many freehold assets at historical valuations in the accounts, efficient warehousing and distribution, family ownership of over 50%, been in business for over 265 years, strong competitor and highly respected in the industry with numerous awards, Board pay restraint, no LTIP/ very limited share options, staff benevolently looked after.
Very unlikely ever to face financial distress even in the deepest downturn.
Therefore over a 10 year term likely to be a good return would be my guess. |
I'm new to this stock but watching - can anyone summarise why the fall from 1500p please? |
Looks as though they are minded to 'invest in the business' ie build a new centrally located National Distribution Centre, ? Milton Keynes, east or west Midlands though there seems to be a gap in their coverage round Manchester/North West and London/ Home Counties/South East area might be underserved, rather than hand out a special dividend. |
Cheapest this company has been since 2011 on a PtB ratio. Great opportunity IMO. |
Davidosh
forecast is for t/o 360m, earnings 94.8p, total year's div 35p, cash 74m, cash flow 25m a decline on last year but relief in the market that it's not worse one surmises. |
Surprisingly large share price rise for an in-line update. |
When it says in line.....what are the forecasts? |
Didn’t expect that so I did not
Nice all the same |
Decent in line trading update. |
Bought a few
These should be a bargain at this price |
wonder how the installation of the warehouse management system is progressing..said to be more complicated than the previous year's software project.
could do with some development in UK timber construction eg adoption of CLT in some new builds with a UK manufacturer.
wonder also, now that the pension scheme is in surplus, whether they would be tempted to offload liability to a third party to reduce risk. |
september 2024: Lthm wins timber trader of the year award in Timber Trades journal awards ceremony so it's won this award at least 12 times.
also won the hardwood trader award, sponsor Hubtex the marketing award,sponsor combilift and the age 25+career development award sponsor Glennon bros, categories all at the same time, the last could be most significant in bringing on staff and retaining managers..
see timber trades journal for a beaming photo of Nick Latham collecting the main award. |
Thanks jct4. Yes, that was a much larger firm and administration just recently announced. I feel for the 400 staff that will likely lose their jobs.
I guess if you're a company like Lathams that's been in business for 250 years, you learn to keep plenty of cash available for the tough times! It does make me think they're in a great position to increase market share going forward. Plenty of capital to finance expansion of capacity too. Let's see how things work out. |
International Decorative Surfaces (IDS) is the competitor in administration on the panel and laminates side of the business. IDS was bought out by the Mmt from Saint Gobain in 2022. |
A quick search suggests it might be Silva Timber Products UK. They went into administration about a year ago. Interesting that Lathams talk about the company now taking market share. Certainly not in any danger of administration with their cash pile! |
would have thought there may still be room for an increased or special dividend, given the amount of cash in the balance sheet and cash generative nature of the business even when the market conditions are tougher but they may prefer to retain the cash to fund the national distribution centre to which they allude. Overall results as expected, outlook also and looks as though PE funds that moved into timber distribution are now running their businesses for cash,?do some of them wish to exit would be interested to learn who their competitor that's gone into administration is? |
This is a cyclical business and in the circumstances the half results are in my view very creditable. Happy to wait for better times to return. Always dyor. |
Well forget the special dividend idea; not much good in those HY numbers or outlook. Shame, all this years share price gains are disappearing as I type. |
shares becalmed since the special divi,
results Thursday, think they expect normalisation of trade at a subdued level,
commentator elsewhere extolling the virtues of KGF balance sheet with about 2.7bn of freeholds prompted a quick look at Latham's.
Not an accountant but this seems to show about 32m of freeholds which appear never to have been revalued and must be worth a lot more, as well as a mountain of cash even after the special divi was paid out,
possibility of another special divi this year especially as some family members might wish to take more out of the company after the horrid budget IHT change? |
agm statement:
"Revenue for the first four months of the current financial year, namely 1 April to 31 July 2024 is £127m compared with £128m for the same period last year. Volumes are up 3.1% on the same period last year. Margins remain consistent with the second half of the previous year. Overheads and resulting profit are in line with market expectations.
Our cash balances remain strong, and debtors days and bad debts remain consistent with the same period last year.
Most of our customers remain busy and are more confident than at the same time last year."
Happy to hold |
hTTps://www.ii.co.uk/analysis-commentary/shares-future-why-firm-just-became-my-second-favourite-ii532607?utm_source= |
davidosh
have been holding a modest amount initially also for about 20 yr....haven't had cause to regret what is a very conservatively and well run company, has been put down (Beddard) as 'dull but worthy' but if all the shares had done as well I would be much more prosperous. |
c3479z,
I couldn’t find mention of the 50% family ownership on the site for some reason, but I don’t doubt your word. I guess if you’ve been in business for 267 years, you end up with a lot of family shareholders! There must be a lot of “non-significant” family holdings within that 50%. It probably explains more clearly the relative lack of institutional investors. |
Meet the family. I have been twice to the Agms and my first was about 17 years ago. David Dunmow is still the FD so a very steady well run company.
James Latham plc confirms that its Annual Report for the year ended 31 March 2024, including the Notice of the 2024 Annual General Meeting ("AGM"), has been posted to shareholders and is now available on the Company's website:
The AGM of James Latham plc will be held at the Leverstock Suite, Holiday Inn, Breakspear Way, Hemel Hempstead, Hertfordshire, HP2 4UA on Wednesday 21 August 2024 at 12.30pm. |
gnome 3
according to the history roll on the Latham website, the company floated in 1965,see history download in the 'about us' section of the website....
'more than half of the shares to this day are owned by members of the Latham family'
Hence, the importance the company places on dividend growth perhaps and little institutional investment,
Chief exec/chairman is 8th generation descendent
seems too few generations for a company founded 1757 unless the founder was very young at the outset.... |
Customisable watchlists with full streaming quotes from leading exchanges, such as LSE, NASDAQ, NYSE, AMEX, Bovespa, BIT and more.
Hot Features
Premium
