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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