Higher sales volumes and a more favourable product mix more than offset declining prices at wood-based sheet materials distributor James Latham (LON:LTHM).
Results for the six months to 30 September showed an 8% increase in revenue to £96.2mln from £89.1mln the year before, while profit before tax jumped to £6.26mln from £5.18mln.
Earnings per share rose 25.9% to 25.8p from 20.5p a year earlier, which means the interim dividend - up to 4.0p from 3.7p last year – is comfortably covered more than six times by earnings.
As at 30 September 2015 shareholder funds had increased to £67.8mln (2014: £63.3m) with cash and cash equivalents of £12.4mln (2014: £12.6mln).
On the current trading front, management information shows growing revenue for October and the first half of November, at slightly improved margins.
Market conditions continue to be difficult in some areas, while they are improving in others, the company said.
“We are in a good position with our wide range of customers and we are trading comfortably in line with market expectations. We are progressing with our plans to relocate our two oldest depots. We are close to agreeing heads of terms on the new Yate site and are in negotiations for the new Wigston site,” the company's chairman, Peter Latham, revealed.
There is to be a changing of the guard in this family business, with Peter Latham handing over most of his executive duties to Nick Latham while staying on as non-executive chairman.
Shares in James Latham were up 12.65p at 680.15p in mid-morning trading.