James Latham, a prominent U.K. distributor of timber, panels, and decorative surfaces, reported a decline in sales for the first four months of the new fiscal year. This drop in sales was primarily due to price weakness observed in certain key product areas.
According to the company, sales per working day decreased by 12% compared to the same period last year. The total revenue for the four-month period ending on July 31 reached 128 million pounds ($163 million). The decline in sales was accompanied by an overall average product price decrease of nearly 2% when compared with the previous year, with slight volume reductions as well.
While most customers remain busy, there have been indications of postponed contracts rather than outright cancellations. As a result, James Latham has noticed a shift in their product mix towards lower-value offerings. The company's board foresees this trend continuing for the remainder of the year as customers seek more cost-effective solutions.
At 1136 GMT, shares were down 20.0 pence, or 1.7%, reaching 1,140.0 pence.