Half Yearly Report

RNS Number : 3163H

Northamber PLC

18 February 2010

 



Northamber plc ("the Company")

Unaudited Interim Statement

for the six months ended 31 December 2009

CHAIRMAN'S STATEMENT

Results

Shareholders will be aware the commercial environment continues to be challenging.  Sales for the period at £63.8 million were 6 per cent lower than the £68.1 million to 31 December 2008. 

The previously reported factors affecting our business include a dependence on customers who are subject to the vagaries of largely discretionary corporate expenditure. That uncertainty within the corporate sector has not yet shown signs of becoming more settled.

Gross profit was down 5 per cent to £4.45 million compared with £4.68 million previously.

To combat the harsh trading environment, we have both reviewed our vendor portfolio and also made further reductions in overheads, to maintain a reasonable balance between operating revenue and costs.

The notes of caution expressed in my previous reports not being unfounded, these results for the six months to the end of December 2009, are, I believe, commendable.

We continue our conservative management of working capital and particularly of cash flow and balances. However, with returns on cash at an all time low, our investment revenue was only £42,000 compared with £283,000 in the comparative period.

There is a provisional tax charge for this interim period of £15,000. This is due to the effect of depreciation charges compared with capital allowances available under the rules for calculating tax liability.

The result is a pre-tax loss for the period of £41,000. This result following the significant reduction in the value of the investment income contribution is a noteworthy improvement on the same period last year when the pre tax loss was £304,000.

This has resulted in a much improved loss per share for the period of 0.19p compared with the loss per share for the comparative period last year being 0.83p.

Balance Sheet

Our balance sheet remains void of any intangibles and we continue to be both debt free and maintain strong cash balances.

At the end of December 2009 the cash balance was £13.48m compared with £10.56m at the end of December 2008.

Dividend

In view of all the circumstances, your board has decided to pay an unchanged interim dividend of 0.6p per share (2008 0.6p per share). The interim dividend will be paid on 31 March 2010 to those shareholders on the register at 5 March 2010.

Outlook

Whilst not wishing to be pessimistic, we see little evidence to the contrary. We will continue to carefully monitor our performance on a daily basis. We believe our continued strategy of managing cost best matches the current uncertainties.

D.M. Phillips

Chairman

18 February 2010

ENQUIRIES

Northamber Plc

David Phillips                                                                 Tel: [phone]

Charles Stanley Securities

Russell Cook                                                                 Tel: [phone]

Consolidated statement of comprehensive income

	Notes	6 months	6 months	Year
		ended	ended	ended
		31.12.09	31.12.08	30.06.09
		£'000	£'000	£'000
		Unaudited	Unaudited	Audited
Revenue		63,801	68,063	139,275
Cost of sales		59,354	63,386	129,853
Gross Profit		4,447	4,677	9,422
Distribution cost		2,366	2,649	4,919
Administrative expenses		2,164	2,615	4,823
Loss from operations		(83)	(587)	(320)
Investment revenue		42	283	367
Finance costs			0	0
(Loss)/profit before tax		(41)	(304)	47
Tax (charge)/credit		(15)	61	5
Total comprehensive income
for the period attributable to
equity holders of the parent		(56)	(243)	52
Basic and diluted (loss)/earnings
per ordinary share		(0.19)p	(0.83)p	0.18p

Consolidated statement of financial position

As at 31 December 2009

	Notes	As at	As at	As at
		31.12.09	31.12.08	30.06.09
		£'000	£'000	£'000
		Unaudited	Unaudited	Audited
Non current assets
Property, plant and equipment	4	2,823	3,101	2,968
Current assets
Inventories		10,942	11,488	7,173
Trade and other receivables		15,569	18,680	20,112
Cash and cash equivalents		13,482	10,556	14,124
		39,993	40,724	41,409
Total assets		42,816	43,825	44,377
Current liabilities
Trade and other payables		16,938	17,719	18,385
Bank overdraft		0	0	0
Current taxation		(10)	(62)	40
Provisions		0	0	0
		16,928	17,657	18,425
Non current liabilities
Deferred tax liabilities		2	48	2
Total liabilities		16,930	17,705	18,427
Net assets		25,886	26,120	25,950
Equity
Share capital		290	290	290
Share premium account		5,734	5,734	5,734
Capital redemption reserve fund		1,497	1,497	1,497
Retained earnings		18,365	18,599	18,429
Total Equity attributable to equity holders of the parent		25,886	26,120	25,950

Consolidated statement of changes in equity

As at 31 December 2009

	Share capital	Share premium account	Capital redemption reserve	Retained earnings	Total Equity
Period to 31 December 2009	£'000	£'000	£'000	£'000	£'000
Unaudited
Balance at 30 June 2009	290	5,734	1,497	18,429	25,950
Dividends				0	0
Purchase of own shares				(8)	(8)
Transaction costs of purchase				0	0
Transactions with owners	0	0	0	(8)	(8)
Comprehensive income
for the period				(56)	(56)
Balance at 31 December  2009	290	5,734	1,497	18,365	25,886
Period to 31 December 2008
Unaudited
Balance at 30 June 2008	294	5,734	1,492	18,957	26,477
Dividends					0
Purchase of own shares	(4)		4	(113)	(113)
Transaction costs of purchase				(1)	(1)
Transactions with owners	(4)	0	4	(114)	(114)
Comprehensive income
for the period				(243)	(243)
Balance at 31 December  2008	290	5,734	1,496	18,600	26,120
Year to 30 June 2009
Audited
Balance at 30 June 2008	294	5,734	1,493	18,956	26,477
Dividends				(465)	(465)
Purchase of own shares	(4)		4	(113)	(113)
Transaction costs of purchase				(1)	(1)
Transactions with owners	(4)	0	4	(579)	(579)
Comprehensive income
for the period				52	52
Balance at 30 June 2009	290	5,734	1,497	18,429	25,950

Consolidated statement of cash flows

6 months to 31 December 2009

	6 months	6 months	Year
	ended	ended	ended
	31.12.09	31.12.08	30.06.09
	£'000	£'000	£'000
Operating activities
Operating profit from
continuing operations	(83)	(587)	(320)
Depreciation of property, plant
and equipment	149	195	369
(Profit)/loss on disposal of property,
plant and equipment	(2)	(8)	(6)
Operating profit before changes in
working capital	64	(400)	43
(Increase)/decrease in inventories	(3,769)	(1,354)	2,961
Decrease/(increase)  in trade and
other receivables	4,543	4,298	2,866
(Decrease)/increase  in trade and
other payables	(1,447)	(5,233)	(4,567)
Cash generated/(utilised) from operations	(609)	(2,689)	1,303
Interest paid	0	0	0
Income taxes paid	(67)	(210)	(211)
Net cash from operating activities	(676)	(2,899)	1,092
Cash flows from investing activities
Interest received	42	271	355
Proceeds from disposal of property,
plant and equipment	12	18	18
Purchase of property, plant and
equipment	(12)	(40)	(82)
Income from investments	0	12	12
Net cash from investing activities	42	261	303
Cash flows from financing activities
Purchase of own shares for cancellation	(8)	(114)	(114)
Dividends paid to equity shareholders	0	0	(465)
Net cash used in financing activities	(8)	(114)	(579)
Net (decrease)/increase in cash and
cash equivalents	(642)	(2,752)	816
Cash and cash equivalents at
beginning of period	14,124	13,308	13,308
Cash and cash equivalents at
end of period	13,482	10,556	14,124
Cash and cash equivalents  for the
purpose of this statement comprise
Cash and cash equivalents	13,482	10,556	14,124
Bank overdrafts	0	0	0
	13,482	10,556	14,124

Notes to the accounts

1.         Corporate Information

The financial information for the year ended 30 June 2009 set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The group's statutory financial statements for the year ended 30 June 2009 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain statements under Sections 489(2) and 489(3) of the Companies Act 2006. The interim results are unaudited. Northamber Plc is a public limited company incorporated and domiciled in England and Wales. The company's shares are publicly traded on the London Stock Exchange.

2.         Basis of preparation

These interim consolidated financial statements are for the six months ended 31 December 2009. They have been prepared in accordance with IAS34 Interim Financial Reporting. They do not include all the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the group for the year ended 30 June 2009.

These interim consolidated financial statements have been prepared under the historical cost convention.

These interim consolidated financial statements (the interim financial statements) have been prepared in accordance with accounting policies adopted in the last annual financial statements for the year to 30 June 2009 except for the adoption of IAS1 Presentation of Financial Statements (Revised 2007). The group has only one reportable segment therefore no statement of segmental reporting is shown in these interim financial statements.

The adoption of IAS1 (Revised 2007) does not affect the financial position or profits of the group, but gives rise to additional disclosures. The measurement and recognition of the group's assets, liabilities, income and expenses is unchanged. A separate 'Statement of changes in equity' is now presented.

The accounting policies have been applied consistently throughout the group for the purposes of preparation of these interim consolidated financial statements.

3.         Basis of Consolidation

For the periods covered in these interim consolidated financial statements up to 31 October 2008, the group comprised the parent company and one operating subsidiary. As from 31 October 2008 that one operating subsidiary ceased operations so that since that date all trading has been carried on solely by the parent company.

All the assets and liabilities of all subsidiaries both trading and dormant have been included in the statements of financial position.

4.         Taxation

The tax charge shown in the interim consolidated financial statements is accrued on an estimated average annual effective rate of tax of 28% (6 months to December 2008 20.0%)

5.         Earnings per Share

The calculation of earnings per share is based on the loss after tax for the six months to 31 December 2009 of £56,000 (2008: loss £243,000) and a weighted average of 29,030,247 (2008: 29,307,013) ordinary shares in issue.

6.         Property, Plant and Equipment

There were no significant additions to or disposals of property, plant or equipment in the period to 31 December 2009.  The reduction in the total value of property, plant and equipment was primarily due to the depreciation charge for the year.

7.         Risks and Uncertainties

The principal risks and uncertainties affecting the business activities of the group are detailed in the director's report which can be found on pages 7, 8 and 18 of the Annual Report and Accounts for the year ended 30 June 2009 (the Annual Report). A copy of the Annual Report is available on the company's web site at www.northamber.com

The risks affecting the business remain the same as in the Annual Report. In summary these include:-

Marketing risk, particularly those relating to the suppliers of products to the group.

Financial risks, including exchange rate risk, liquidity risk, interest rate risk and credit risk.

 

END

 

 

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