Business
Half Yearly Report
Half Yearly Report.
About this update from Northamber Plc
[{"type":"text","content":"\n \nRNS Number : 0804T Northamber PLC 24 March 2016 \n\nNorthamber PLC \n(\"Northamber\" or the \"Company\")\n \nInterim Results for the Six months to 31 December 2015\n \nChairman's Statement\n \nResults\n \nIn my report on the financial year ended 30 June 2015, I stated that the second half of that year saw a reversal of the encouraging first half of the year and I commented on the various reasons at the time. Although hopeful that we could overcome those negative factors, I did again sound a note of caution, one that proved well founded as the core difficulties within the sector's dynamics continued to prevail over our ongoing corrective actions.\n \nThe group has two areas of focus, the long standing high-tech distribution model and the retail sector that utilises our leading edge storage and logistics strengths. Across calendar 2015 the progress in revenue growth was positive with a 9.4% increase in the second calendar half, despite the Windows 10 hiatus shared in my last report and slow commercial sector acceptance. Management actions taken for the longer term resulted in the less satisfying second half 2015 statistic, with year-on-year comparatives some 9.0% lower at £32.5 million compared with £35.7 million.\n \nSteps taken to increase the skill levels of our staff did serve to spur the achievements of our planned strategy and our actions to concentrate in more profitable areas resulted in consolidating margins with a slight improvement, compared with the first half of last year, rising from 6.8% to 6.9%; whilst minor not insignificant given the prevailing market conditions of uncertainty and lost revenue.\n \nThose improved margins were not sufficient, however, to compensate for the higher staff costs and comparative loss of turnover, such that the gross profit line was some £198,000 less than the £2.4 million achieved in the first half of the comparative period.\n \nAs a result primarily of one off staff recruitment costs overheads were some £190,000 higher than for the same period in the previous year, with the net result that the pre-tax loss for the period was £547,000 compared with £292,000 in the first half of the previous year. A most disappointing short term result; albeit there should be further benefits accruing from this strategy over the medium...