By Joe Hoppe
James Latham PLC said Tuesday that it expects fiscal 2022 revenue to significantly rise on year on the back of inflationary prices, though supply chain issues have persisted and its overheads are facing pressure.
The distributor of timber, panels and decorative surfaces said that it expects revenue for the year ending March 31 to rise to more than 370 million pounds ($484.4 million) from GBP250 million a year prior. This reflects cost prices that rose throughout the year, and there are no current signs of price weakness, the company said.
Volume growth has slowed and gross margins percentages are now returning to more normal levels in line with expectations. Supply chain issues have persisted with shipment delays and congestion at the ports, a situation exacerbated by Russia’s invasion of Ukraine and its effect on Russian ships and ports, the company said.
Higher than normal inventory levels are being maintained and an extensive network of suppliers utilized to ensure a high level of product availability.
Overheads are also facing inflationary pressure, particularly with increased fuel costs, though they are being closely monitored and controlled and the company’s balance sheet and cash balances remain strong.
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