James Latham : Statement to 2017 AGM - Aug 2017

The Directors intend to issue the following statement to shareholders attending today's AGM:

Revenue for the first four months of the current financial year, namely April to July 2017, is 6% higher than for the same period last year. It is encouraging to note that volumes through our warehouses are higher than for the corresponding period last year which saw particularly strong trading. While the weaker value of sterling against the euro and dollar has led to increased prices, this has led to continued pressure on margins as it takes time for higher prices to become established in markets.

The level of activity for both timber and panels customers remains positive, however the trading environment remains competitive. We continue to see growth in most of the newer product lines that we have taken on. Bad debts continue at a low level.

We moved into the new site in Yate in July; this will give us the opportunity to grow the business and improve efficiency, but the immediate impact is a short term increase in costs. Relocation of our Wigston warehouse to Leicester is progressing; having purchased a new site, construction work has started and completion is expected by the end of 2017.

In spite of the investment in the new sites in Yate and Leicester, the Company's cash reserves remain strong.

The Company's interim results for the six months ending 30 September 2017 will be announced on 30 November 2017.

After more than ten years as Chairman, latterly as Non-Executive Chairman, today I retire from the Company. I would like to thank my colleagues on the Board and the great team of people who work in the company for their support and wish them every success in the future under Nick Latham's leadership.

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