Final Results

Northamber PLC 22 September 2004 NORTHAMBER PLC Northamber plc Preliminary Results for the year ended 30th June 2004 CHAIRMAN'S STATEMENT Results Your Board is pleased to report a solid performance delivering improved full year results by the Group. Pre-tax profits rose to £2.2 million before an exceptional property related loss of £393,000 following the assignment of the lease of the former principal trading property. Compared with the pre tax profits of £422,000 for the same period last year, this reflects evolving and positive sector changes. A slowing in the rate of price erosion, experienced in recent years, resulted in slightly reduced sales revenues of £233 million (£240 million: 30 June 2003). Once again this deflationary effect negated the sales revenue growth arising from the growth in unit sales. Our improving position within our major suppliers, relative to our sector competitors, supports our understanding that we have again increased our market share. Whilst continuing our avoidance of loss making sales of mere revenue products, total overheads were reduced by a further 8.3% compared with the reported 5.2% reduction we achieved a year ago. That saving was coupled with an increase of 3.4% in gross profit percentage margin. Earnings per share for the year, increased to 3.67p from the 0.94p reported last year, whilst Net assets per share rose to 99.3p from the 98.3p reported a year ago. At the year end the cash balance was £9.150 million and the Group continues to remain debt free. Subject to shareholder approval at the AGM, these results will enable the Board to recommend a final cash dividend of 3.0p (net), making a total of 4.1p for the full year, compared with a total of 3.0p last year. Trading The group's moves to refine its focus on core operations since the end of 2002, has brought a worthy improvement. Within the fast changing environment of this sector, we have worked to achieve improved and significant status within the UK activities of each of our major suppliers Progressive changes have enabled a reduction in operational costs in both premises and staff numbers. The average staff numbers fell by 10.7% to 299. The Balance Sheet Continued strong cash management during the period enabled the Group to end the year with a very strong £9.15 million (£7.17 million: 30 June 2003) net cash position at year-end, which was again coupled with zero debt. £3.615 million of cash was generated over the year, although this was reduced to £1.985 million after payment of equity dividends and the £672,000 spent on repurchasing our own ordinary shares. The cash needs of the business are such that the proposal to buy back further shares for cancellation will be put to shareholders at the Annual General Meeting. The total net asset value of £31.11 million is after the annual depreciation charge of £907,000, dividends of £1,261,000 and £672,000 spent on the re-purchase of 1,115,000 ordinary shares for cancellation. Dividend Our strong cash management and net cash position, makes it possible to propose that the final dividend be increased by 1.0p to 3.0p (net) representing a marginal over distribution of £96,000 for the year. If approved, the proposed dividend will be payable on 7th January 2005 to members on the Register as at 3rd December 2004. Outlook The changes of the past two years have been justified as correct and brought worthwhile opportunities. Putting aside the state of the sector and the economy as a whole, your Board is confident in the outcome for the year. D.M. Phillips Chairman 22nd September, 2004 CONSOLIDATED PROFIT AND LOSS ACCOUNT Notes 2004 2004 2004 2003 Before Exceptional Exceptional Total Total Items Items £'000 £'000 £'000 £'000 Turnover 232,809 232,809 240,481 Cost of sales (213,862) (213,862) (221,563) -------------- -------------- -------------- Gross profit 18,947 18,947 18,918 Distribution costs (10,548) - (10,548) (11,073) Administrative expenses (6,624) (393) (7,017) (7,660) Other operating income 226 - 226 220 -------------- -------------- -------------- -------------- Operating profit 2,001 (393) 1,608 405 Interest receivable 209 - 209 103 Interest payable (5) - (5) (86) -------------- -------------- -------------- -------------- Profit on ordinary 2,205 (393) 1,812 422 activities before taxation ======== ======== Tax on profit on (647) (116) ordinary activities -------------- -------------- Profit on ordinary 1,165 306 activities after taxation Equity dividends 3 (1,261) (977) -------------- -------------- Amount transferred from (96) (671) reserves ======== ======== Earnings per ordinary 2 3.67p 0.94p share Diluted earnings per 2 3.67p 0.94p share CONSOLIDATED BALANCE SHEET 30 June 2004 30 June 2003 £'000 £'000 Fixed assets Tangible assets 4,541 5,575 Investments 2,837 2,837 -------------- -------------- 7,378 8,412 -------------- -------------- Current assets Stocks 17,363 13,214 Debtors - amounts falling due within one year 26,887 27,249 Cash at bank and in hand 9,150 7,165 -------------- -------------- 53,400 47,628 Current liabilities Creditors - amounts falling due within one year (28,888) (23,324) -------------- -------------- Net current assets 24,512 24,304 -------------- -------------- Total assets less current liabilities 31,890 32,716 Provisions for liabilities and charges (783) (859) -------------- -------------- Net assets 31,107 31,857 ======= ======= Capital and reserves Called up share capital 1,566 1,620 Share premium account 5,734 5,724 Capital redemption reserve 221 165 Profit and loss account 23,586 24,348 -------------- -------------- Equity shareholders' funds 31,107 31,857 ======= ======= CONSOLIDATED CASH FLOW STATEMENT Notes 2004 2003 £'000 £'000 Cash inflow/(outflow) from continuing operating 4 3,669 (365) activities ------------- ------------- Returns on investments and servicing of finance Interest received 209 103 Interest paid (5) (86) Income from fixed asset investments 220 219 ------------- ------------- Net cash inflow from returns on investments and 424 236 servicing of finance ------------- ------------- Taxation UK corporation tax (paid)/received (529) 179 ------------- ------------- Capital expenditure and financial investment Purchase of tangible fixed assets (314) (408) Sale of tangible fixed assets 365 62 ------------- ------------- Net cash inflow/(outflow) from capital expenditure and 51 (346) financial investment ------------- ------------- Equity dividends paid (970) (978) ------------- ------------- Cash inflow/(outflow) before financing 2,645 (1,274) ------------- ------------- Financing Purchase of shares (672) (174) Issue of ordinary share capital 12 26 ------------- ------------- Net cash outflow from financing (660) (148) ------------- ------------- Increase/(decrease) in cash in period 4 1,985 (1,422) ======= ======= NOTES 1. Financial information The financial information set out above does not constitute the Group's statutory accounts for the years ended 30th June 2003 or 30th June 2004, but it is derived from those accounts. The Statutory Accounts for 30th June 2003 have been delivered to the Registrar of Companies and those for 2004 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 S237(2) or (3) of the Companies Act 1985. The information contained in this statement does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. 2. Earnings per ordinary share The calculation of earnings per ordinary share is based on the profit after taxation of £1,165,000 (2003: £306,000) and on 31,770,085 ordinary shares (2003: 32,511,604). The number of ordinary shares in issue during the years ended 30th June 2004 and 30th June 2003 were the weighted average in issue during each year. Computation of Earnings per share for 2004 Per share Earnings Shares Net profit for year £1,165,000 Weighted average shares outstanding during year 31,770,085 Basic earnings per share 3.67p Diluted effect of options (4,317) Diluted earnings per share 3.67p £1,165,000 31,765,768 3. Dividends An interim dividend has been paid during the year of 1.1p per share. A final dividend of 3.0p will be paid on 7th January 2005 to those members on the register at close of business on 3rd December 2004. The ex-dividend date for the shares will be 1st December 2004. 4. Cash flow a) Reconciliation of operating profit to operating cash flows 2004 2003 £'000 £'000 Continuing operations Operating profit 1,608 405 Income from fixed assets investments (220) (219) Depreciation of tangible fixed assets 907 1,054 Loss on sale of tangible fixed assets 83 7 (Increase)/decrease in stocks (4,149) 1,376 Decrease/(increase) in trade debtors 387 (338) (Increase)/decrease in other debtors (68) 8 Decrease in prepayments and accrued income 43 78 Increase/(decrease) in trade creditors 5,171 (2,467) Decrease in other taxation and social security (431) (7) Increase/(decrease) in accruals and deferred income 318 (403) Increase in other creditors 20 141 ------------ ------------ Net cash inflow/(outflow) from continuing operating 3,669 (365) activities ------------ ------------ b) Reconciliation of net cash flow to movement in net funds Increase/(Decrease) in cash in the period 1,985 (1,422) Cash outflow from changes in debt - - ------------ ------------ Change in net funds resulting from cash flows in the 1,985 (1,422) year Net funds brought forward 7,165 8,587 ------------ ------------ Net funds carried forward 9,150 7,165 ====== ====== c) Analysis of net debt At 1st July Cash Flow At 30th 2003 June 2004 £'000 £'000 £'000 Cash at bank and in hand 7,165 1,985 9,150 ----------- ----------- ----------- Total number of shares in issue 31,316,000 Weighted average number of shares 31,770,085 Date of AGM 5th November 2004 Ex Dividend Date 1st December 2004 Dividend Date 7th January 2005 The Company's registered office is 1-3 Union Street, Kingston-upon-Thames, Surrey KT1 1RP. This information is provided by RNS The company news service from the London Stock Exchange

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