Northamber PLC
11 June 2001
Northamber plc
- Statement on Current Trading -
Shareholders will be aware from announcements by many of the major desktop PC
manufacturers that the industry has seen a marked downturn in demand for PC's.
Whilst we experienced significantly improved sales during the first three
months of 2001, that growth declined in April, and May has proven
disappointing. When pre-viewing the prospects for June, the last month of our
financial year, we are unable, when taken in conjunction with a marked
decrease in prices for current models, to have any confidence that June sales
will enable the shortfall to be regained. This is despite good results from
some of our newer lines. Sales are therefore likely to be some £20m below
market expectations of £320m.
Our core margins are ahead of last year, but as shareholders will be aware, a
significant contribution to our pre-tax profits is derived from additional
rebates on pre-agreed sales performance. A number of major manufacturers plan
product changes over the summer and against this background we may not
therefore achieve all the rebates we would normally expect.
In contrast to the decline in sales revenue, our margins have improved and the
group continues to trade profitably. I will expand on the future in my
statement when the final results are announced in September, but the recent
opening of our new warehouse complex at Byfleet is expected to result in
operational savings next year.
Our core financial strengths have also further improved since our last report
to shareholders and cash generation remains good.
11 June 2001
Enquiries: David Phillips
Chariman
Northamber plc
020 8296 7000
Robert Corden
Charles Stanley & Company Limited
020 7739 8200