Business
Interim Results
Interim Results.
About this update from Northamber Plc
[{"type":"text","content":"\n RNS Number : 5495N Northamber PLC 19 February 2009 \nNorthamber plc (“the Company”)\nUnaudited Interim Statement\nfor the six months ended 31 December 2008\n \nCHAIRMAN’S STATEMENT\n \nResults\n \nOur trading caution, driven by the UK economy and associated trade credit risks and expressed within my statement on our first quarter’s trading, materialized, in reduced sales of £68 million (31 December 2007, £97 million).\n \nThe resultant pre-tax loss of £304,000 (31 December 2007 a pre-tax profit of £453,000) is an unavoidable consequence and our first reported loss in over 15 years or since the last UK recession. The amount of the loss was mitigated by £900,000 of further cost saving measures versus a year ago.\n \nThe trend over our first half-year with turnover almost 30% lower, also reflected UK sector statistics for sales of commercial hardware I.T. equipment.\n \nOur product range largely encompasses discretionary corporate expenditure. The general and continuing uncertainty within the economy, and the market as a whole, remains the dominant feature of our marketplace.\n \nThe importance of cash ensures Northamber is in a particularly strong position with the strength of our balance sheet and cash reserves.\n \nIt has always been a primary feature of our management of the business that we focus on the conservation of our working capital. The current state of affairs within the industry and the country at large has once again shown this policy to be appropriate.\n \nBecause of our financial strength and being able to offer both our suppliers and our customer's opportunities, the rate of gross margin is slightly better at 6.9% than when compared with 6.5% a year ago.\n \nBalance Sheet\n \nOur well established policy is to conserve working capital and that we have continued to do. After £4.437 million in share buy-backs, dividends and returns to shareholders during 2007/2008, as at 31 December 2008 we retained cash reserves of £10.5 million. This compares with £11.8 million at 31 December 2007. Total net assets comparatively declined from 102p per share to 90p, and a current NAV £26.1 million down from £30.1 million the result of the above.\n \nDividend\n \nWith our very high levels of cash, this aspect challenged your board. It was decided to mitigate th...