Final Results

RNS Number : 1341E

Northamber PLC

24 September 2008

 

Northamber plc

Preliminary Results for the year ended 30 June 2008

Chairman's Statement

Results

Revenues for the year were £179.7 million against £182.2 million for the prior year. After having shown improvement over the first three quarters, the downturn in the general economic climate during our fourth quarter, resulted in a comparative 1.4% fall in revenue against the prior year.

Pre-tax profits of £627,000 (2007: £592,000) increased by 5.9% through maintenance of consistent gross profit margins and a decrease in overheads including an 8% reduction in logistics costs, despite the 1.4% decrease in revenues.

Administrative costs rose marginally due to increased insurance costs to provide for customer defaults in the deteriorating economic climate.

In the current year there was a total tax charge of £222,000 compared with a total tax credit in the previous year of £510,000. The prior year tax credit arose from a cancellation of the deferred tax liability in respect of  the possible claw-back of Enterprise Zone Allowances following the sale in 2006 of a lesser, long leasehold interest in the Arbroath investment property. Whilst there remains a contingent exposure to claw-backs for a further nine years, the likelihood of this is considered to be remote and so no amounts are provided in this respect in the financial statements.

Earnings per share for 2008 were 1.36p compared with 3.62p for the previous year.  The 3.62p a year ago would have only been 1.31p if adjusted for the deferred tax credit referred to above.

My reports usually mention the control of working capital. Working capital ratios can and do vary within fairly narrow margins from year to year. For the year just ended those key  ratios all showed small but favourable movements. Movements in working capital have fluctuated in accordance with normal trading operations.

 Stock turns  increased from an average of 14.5 to 16.5 times. Debtor days were decreased from 44 to 39 days and additional cash discounts drove creditor days from 41 to 37 days.

The Balance Sheet

During the year, the company repurchased  and cancelled 1,075,000 of its ordinary shares of 5p each at a cost of £702,000.

Shareholders will be aware that following the EGM on 3rd April, we undertook a capital restructure and effectively returned 10p per share. This was enabled by the sale of a minority interest in the long leasehold interest in the Arbroath investment property. This also reflected the board's previously advised intention to consider how best to return surplus cash to shareholders. 

Following these transactions, which totalled £3.6 million, at year end the group had £13.3 million in cash, compared with the £14.9 million in June 2007 demonstrating the cash generation capability of the business.  

The reduction in Net Asset Value from £30.5 million to £26.48 million was after the re-purchase of shares and the dividends during the year of £646,000. The total cost of these balance sheet movements in the year was £4.28million. 

The resultant 90.1p net assets per share are therefore just over 10p per share lower than the previous year's 100.2p.  

Staff

As will be understood, current circumstances have been and continue to be difficult. The results we have achieved are the result of the focus of all the management and staff of the group, and we can all be very appreciative of their efforts.

Dividend

In view of the results for the year, combined with the strength of the balance sheet, your board considers it appropriate to recommend an unchanged final dividend of 1.0p per ordinary share which together with the interim dividend of 1.2p,  makes a total for the year of 2.2p (2007: 2.2p).

If approved at the AGM, the proposed final dividend will be payable on 9 January 2009 to members on the register at 5 December 2008.

Outlook

The expressions of quiet confidence in my statements of prior years, within the present economic uncertainty, are not easily given. Within an area of largely discretionary expenditure and a lack lustre start to the year, it is simply not possible to provide any guidance, beyond our determination to continue to manage the balance sheet tightly. 

D.M.Phillips

Chairman 

24 September 2008

CONSOLIDATED INCOME STATEMENT
For the year ended 30 June 2008
	2008		2007
	£'000		£'000
Continuing operations:
Revenue	179,677		182,191
Cost of Sales	(167,801)		(170,174)
Gross Profit	11,876		12,017
Distribution cost	(6,283)		(6,835)
Administrative expenses	(5,568)		(5,140)
Profit from operations	25		42
Investment revenue	602		608
Finance Costs	-		(58)
Profit before tax	627		592
Tax	(222)		510
Profit for the year from continuing operations	405		1,102
Total basic earnings per ordinary share	1.36p		3.62p
Total diluted earnings per ordinary share	1.36p		3.62p
See Note 2
All profit for the current and prior year arises from continuing operations

CONSOLIDATED BALANCE SHEET
At 30 June 2008
	2008		2007
	£'000		£'000
Net current assets
Property, plant and equipment	3,267		3,562
Current assets
Inventories	10,134		11,728
Trade and other receivables	22,978		26,324
Cash and cash equivalents	13,308		14,860
	46,420		52,912
Total assets	49,687		56,474
Current liabilities
Trade and other payables	(22,952)		(25,734)
Bank overdraft	-		-
Tax liabilities	(210)		(167)
	(23,162)		(25,901)
Non current liabilities
Deferred tax liabilities	(48)		(64)
Total liabilities	(23,210)		(25,965)
Net assets	26,477		30,509
Equity
Share capital	294		1,523
Share premium account	5,734		5,734
Capital redemption reserve	1,493		264
Retained earnings	18,956		22,988
Equity shareholders' funds	26,477		30,509

CONSOLIDATED CASH FLOW STATEMENT
For the year ended 30 June 2008
	2008		2007
	£'000		£'000
Cash inflow from operating activities
Operating profit from continuing operations	25		42
Depreciation of property, plant and equipment	425		456
(Profit)/loss on disposal of property, plant and equipment	(10)		18
Loss/(profit) on sale of investment property	-		48
	440		564
Decrease/(increase) in inventories	1,594		(2,676)
Decrease in trade and other receivables	3,346		1,320
(Decrease)/increase in trade and other payables	(2,782)		5,308
Cash generated from operations	2,598		4,516
Interest paid	-		(58)
Income taxes paid	(195)		(145)
Net cash from operating activities	2,403		4,313
Cash flow from investing activities
Interest received	567		533
Proceeds from disposal of property, plant and equipment	14		30
Proceeds from disposal of investment property	-		2,435
Purchase of property, plant and equipment	(134)		(154)
Rental income	35		75
Net cash from investing activitie4s	482		2,919
Cash flows from financing activities
Purchase of own shares for cancellation	(3,791)		-
Dividends paid to equity shareholders	(646)		(671)
Net cash used in financing activities	(4,437)		(671)
Net increase/(decrease) in cash and cash equivalents	(1,552)		6,561
Cash and cash equivalents at beginning of year	14,860		8,299
Cash and cash equivalents at end of year	13,308		14,860
Cash and cash equivalents for the purpose of this statements comprise:
Cash and cash equivalents	13,308		14,860
Bank overdraft	-		-
	13,308		14,860

STATEMENTS OF CHANGES IN EQUITY
Consolidate statement of changes in equity
At 30 June 2008		Share	Capital
	Share	premium	redemption	Retained	Total
	capital	account	reserve	earnings	Equity
	£'000	£'000	£'000	£'000	£'000
Balance at 1 July 2006	1,523	5,734	264	22,557	30,078
Profit for the year	-	-	-	1,102	1,102
Total recognised income for the year	-	-	-	1,102	1,102
Dividends	-	-	-	(671)	(671)
Balance at 30 June 2007	1,523	5,734	264	22,988	30,509
Balance at 1 July 2007	1,523	5,734	264	22,988	30,509
Profit for the year	-	-	-	405	405
Total recognised income for the year	-	-	-	405	405
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

NOTES

• Financial information

The financial information set out above does not constitute the group's statutory accounts for the years ended 30 June 2007 or 30 June 2008, but is derived from those accounts. The statutory accounts for the year ended 30 June 2007 have been delivered to the Registrar of Companies and those for 2008 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 share

	The calculation of total basic and diluted earnings per share is based on the following data:
				2008		2007
				£'000		£'000
	Earnings for the purpose of total basic earnings per share
	being net profit attributable to equity holders of
	the parent company			405		1,102
	Effect of dilutive shares			-		-
	Earnings for the purpose of diluted earnings per share			405		1,102
				2008		2007
				Number		Number
	Number of shares
	Weighted average number of shares for the purpose of
	total basic earnings per share			29,809,125		30,458,100
	effect of dilutive potential of shares - share options			-		-
				29,809,125		30,458,100

3. Dividends

  An interim dividend has been paid in the year of 1.2p per share. A final dividend of 1.0p will be paid on 9 January 2009 to those members on the register at close of business on 5 December 2008.

Total number of shares in issue	29,383,100
Date of Annual General Meeting	21 November 2008
Ex dividend date	3 December 2008
Dividend date	9 January 2009

 

END

 

 

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