(NAR.L) Northamber PLC Buy/Sell

RNS Number : 6548C
  Northamber PLC
  17 November 2009
   

Northamber Plc

Interim Management Statement - 1st Quarter to 30 September 2009

The trends as referred to in the results statement for the year ended 30th June 2009 continued to challenge commercial intentions. Sales for the first quarter of our fiscal year were consistent with the reported slower pick-up in the UK IT market and some 9% lower in value than for the comparative period of last year. 

The rate of decline in sales was similar to the levels of price erosion during the period, but significantly lower than the 22 per cent decline in sales for the year to 30 June 2009 compared with the prior year. The latent impact of the new franchises as referred to in the year-end statement, are anticipated to show an impact later in the year.

The gross margin in the first quarter held up reasonably well with only a quarter of a point reduction as against the first quarter of last year. Pleasingly, slightly better than for the last year as a whole (by 0.11 points).

The continuing tight control of costs was maintained with approximately £0.5 million saved in overheads, compared with the first quarter of the previous year.

The continuing impact of very low interest rates on our very strong net cash position is considerable. The net result was a small loss but less than the corresponding period last year and for what is traditionally our weakest quarter.

The changes in product offerings and the new franchises, increased our stock levels during the first quarter. Nevertheless with considerable cash balances in excess of £9 million and our Net Assets per share standing at 89.1 pence we continue to manage a strong balance sheet which is a significant benefit.

The sector as a whole continues to experience challenging and difficult times, and we are similarly affected by those prevailing conditions and the outlook continues to be difficult to assess.
        

For further information, contact:

Northamber Plc

David Phillips  Tel: 020 8296 7000

      Charles Stanley Securities 
      Philip Davies  Tel: 0207 149 6000

This information is provided by RNS
The company news service from the London Stock Exchange
 
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RNS Number : 5733Z
  Northamber PLC
  24 September 2009
   

Northamber plc

Preliminary Results for the year ended 30 June 2009

Chairman's Statement

Results

Revenue for the year to 30th June 2009 reflected the severe recession in our core commercial-user marketplace together with some resultant price erosion. As predicted in my 3rd quarter statement, revenue continued to decline with £139.3 million for the year, some 22% less than the £179.7 million for the previous year. Such hazardous trading conditions did not assist sales when we necessarily sought lower stock and debtor exposures.

At the pre-tax level, profit of £47,000 represents a significant recovery over the £304,000 pre-tax interim loss reported last 19th February for the half year. (30th June 2008: £627,000).

Net Assets per Share at 89.4p only fell a marginal 0.7p from the 90.1p per share at June 2008. This result is after £465,000 of dividends and £114,000 spent re-purchasing shares for cancellation.  The Net Asset Value of £25.95 million compared with the £26.48 million last year whilst Net Cash improved by £816,000 to £14.1 million against the £13.3million for the prior year.

Overheads were yet again the focus and lower than those for the previous year.  Distribution Costs were reduced by £1.36 million (21.7%); Administration Costs were reduced by £745,000 (13.4%), a total reduction of £2.1 million.  However, even such significant cost savings fell short of satisfying the reduction in Gross Profit. This resulted in an Operating Loss of £320,000 compared with the Operating Profit of £25,000 in the previous year.

Nonetheless, in the exceedingly difficult conditions, I have to consider this result creditable, and thank all members of the company for their efforts and contribution

Interest income for the period was inevitably significantly lower following the massive reduction in available interest rates.  As detailed below, we generated positive cash flows during the year and at the year end had cash balances of £14.1 million compared with £13.3 million for the previous year. 

The tax charge was reduced by adjustments affecting the deferred tax liabilities.  The result was a post-tax profit for the year of £52,000 (EPS 0.18p) compared with £405,000 a year ago (EPS 1.36p).

Balance Sheet

A proven feature is our ability to manage working capital.  This delivers demonstrably sound Critical Key Performance Indicators for the group such as Stock Turns, Debtor and Creditor days. 

Whilst Debtor and Creditor days vary from year to year, over the last 3 years we have gradually increased the rate of stock turnover per annum. For the year just ended we achieved a stock turn of 18.1 times compared with 16.6 times for the previous year.

One crucial item is, as always, cash. We did achieve positive cash flow in the year after paying dividends of £465,000 and £114,000 repurchasing shares for cancellation. At year end our cash balances were £14.1 million compared with £13.3 million at the end of June 2008.

Staff

Trading conditions necessitated average staff numbers falling to 165 from the 190 average of a year ago.  Again we are proud of the way in which all members of our staff continue to perform in these extremely trying conditions.

Dividend

After due consideration of the trading conditions, the results achieved and the current outlook, your Board is proposing a final dividend of 1.0p per share, which combined with the interim dividend of 0.6p per share makes a total for the year of 1.6p (2008: 2.2p).

Outlook

Whilst significant new franchises have been secured since year-end, with extended delivery time frames and launch delays, their impact is unlikely to have any swift or strong contribution in the current half.  With the experience of the recent past and current negative predictions, it is not possible to be sanguine about the future.  

We shall therefore continue, as we have in the past, to manage our resources to the best of our ability and to seek opportunities wherever we can.

D.M.Phillips

Chairman 

24 September 2009

For further information, contact:

Northamber Plc                      David Phillips            020 8296 7000

Charles Stanley Securities        Philip Davies            020 7149 6000

      
 CONSOLIDATED INCOME STATEMENT                         
 For the year ended 30 June 2009                       
                                              2009         2008
                                              £'000        £'000
                                                       
 Revenue                                      139,275      179,677
 Cost of Sales                              (129,853)    (167,801)
 Gross Profit                                   9,422       11,876
 Distribution cost                            (4,919)      (6,283)
 Administrative expenses                      (4,823)      (5,568)
 Profit from operations                         (320)           25
 Investment revenue                               367          602
 Finance Costs                                -            -  
 Profit before tax                                 47          627
 Tax                                                5        (222)
 Profit for the year from operations               52          405
                                                       
 Total basic earnings per ordinary share      0.18p        1.36p
 Total diluted earnings per ordinary share    0.18p        1.36p
                                                       

      
 CONSOLIDATED BALANCE SHEET               
 At 30 June 2009                          
                                          
                                  2009        2008
                                 £'000       £'000
 Net current assets                       
 Property, plant and equipment     2,968       3,267
                                          
 Current assets                           
 Inventories                       7,173      10,134
 Trade and other receivables      20,112      22,978
 Cash and cash equivalents        14,124      13,308
                                  41,409      46,420
                                          
 Total assets                     44,377      49,687
                                          
 Current liabilities                      
 Trade and other payables       (18,385)    (22,952)
 Tax liabilities                    (40)       (210)
                                (18,425)    (23,162)
                                          
 Non current liabilities                  
 Deferred tax liabilities            (2)        (48)
                                          
 Total liabilities              (18,427)    (23,210)
                                          
 Net assets                       25,950      26,477
                                          
 Equity                                   
 Share capital                       290         294
 Share premium account             5,734       5,734
 Capital redemption reserve        1,497       1,493
 Retained earnings                18,429      18,956
 Equity shareholders' funds       25,950      26,477
                                          
                                          

      
 CONSOLIDATED CASH FLOW STATEMENT
 For the year ended 30 June 2009
                                                      2009                    2008
                                                      £'000                   £'000
 Cash inflow from operating activities
 Operating profit from continuing operations               (320)                  25
 Depreciation of property, plant and equipment               369                 425
 (Profit)/loss on disposal of property, plant                (6)                (10)
 and equipment
                                                              43                 440
 Decrease in inventories                                   2,961               1,594
 Decrease in trade and other receivables                   2,866               3,346
 (Decrease) in trade and other payables                  (4,567)             (2,782)
 Cash generated from operations                            1,303               2,598

 Interest paid                                     -                           - 
 Income taxes paid                                         (211)               (195)
 Net cash from operating activities                        1,092               2,403

 Cash flow from investing activities
 Interest received                                           355                 567
 Proceeds from disposal of property, plant and                18                  14
 equipment
 Purchase of property, plant and equipment                  (82)               (134)
 Rental income                                                12                  35
 Net cash from investing activities                          303                 482

 Cash flows from financing activities
 Purchase of own shares for cancellation                   (114)             (3,791)
 Dividends paid to equity shareholders                     (465)               (646)
 Net cash used in financing activities                     (579)             (4,437)

 Net increase/(decrease) in cash and cash                    816             (1,552)
 equivalents
 Cash and cash equivalents at beginning of year           13,308              14,860
 Cash and cash equivalents at end of year                 14,124              13,308

 Cash and cash equivalents for the purpose of this statements
  comprise:
 Cash and cash equivalents                                14,124              13,308
 Bank overdraft                                    -                           - 
                                                          14,124              13,308

      STATEMENTS OF CHANGES IN EQUITY

Consolidated statement of changes in equity

At 30 June 2009

                                           Share    Capital 
                                  Share   premium  redemption  Retained   Total
                                 capital  account   reserve    earnings  equity
                                  £'000    £'000     £'000      £'000     £'000
 Balance at 1 July 2007            1,523    5,734         264    22,988   30,509
 Profit for the year                 -        -         -           405      405
 Total recognised income for         -        -         -           405      405
 the year
 Dividends                           -        -         -         (646)    (646)
 Purchase of own shares          (1,229)                1,229   (3,637)  (3,637)
 Transaction costs of purchase       -        -         -         (154)    (154)
 Balance at 30 June 2008             294    5,734       1,493    18,956   26,477

 Balance at 1 July 2008              294    5,734       1,493    18,956   26,477
 Profit for the year                 -        -         -            52       52
 Total recognised income for         -        -         -            52       52
 the year
 Dividends                           -        -         -         (465)    (465)
 Purchase of own shares              (4)      -             4     (113)    (113)
 Transaction costs of purchase       -        -         -           (1)      (1)
 Balance at 30 June 2008             290    5,734       1,497    18,429   25,950

      Notes:
    
 
1.      Financial information

The financial information set out above does not constitute the group's statutory accounts for the years ended 30 June 2008 or 30 June 2009, but is derived from those accounts. The statutory accounts for the year ended 30 June 2008 have been delivered to the Registrar of Companies and those for 2009 will be delivered following the group's annual general meeting. The auditors have reported on these accounts, their reports were unqualified and did not contain statements under s.498(2) or (3) of the Companies Act 2006. The information contained in this statement does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.

2.   Earnings per ordinary share
    

 The calculation of total basic and diluted earnings per share is based on the following data:

                                                                                    2009                      2008
                                                                                   £'000                     £'000
 Earnings for the purpose of total basic earnings per share being net
 profit attributable to equity holders of
 the parent company
                                                                                             52                   405
 Effect of dilutive shares                                                            -                         -

 Earnings for the purpose of diluted earnings per share                                      52                   405

                                                                                    2009                      2008
                                                                                   Number                    Number
 Number of shares
 Weighted average number of shares for the purpose of
 total basic earnings per share                                                      29,171,182            29,809,125
 effect of dilutive potential of shares - share options                               -                         -

                                                                                     29,171,182            29,809,125

3.   Dividends
    

A final dividend of 1.0p will be paid on 12 January 2010 to those members on the register at close of business on 4 December 2009.

4.   The annual report accounts for the year ended 30 June 2009 will be posted to shareholders in due course and the Annual General Meeting will be held on 10 November 2009.

The Company's registered office is Namber House, 23 Davis Road, Chessington, Surrey KT9 1HS.

This information is provided by RNS
The company news service from the London Stock Exchange
 
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