Interim Results

Northamber PLC
20 February 2003

                                 Northamber PLC
                     Interim Report & Accounts  (Unaudited)
                    For Six Months Ended 31st December 2002


Chairman's Statement

Results


An increase in sales to £119.3 million for the six month period (£118.4 million:
31st December 2001) records a modest uplift in sales revenues and importantly,
market share within our volume P.C. related activities. The pre-tax loss of
£260k reveals unit volume growth as having been again coupled with still further
falls in both price and profit margins. These results represent a loss of 0.58p
per share, against the 0.18p of earnings per share of a year ago. Depreciation
of £545k reduced the NAV per share to 98.5p, from the 101.9p of 31st December
2001.



Although sales at £119.3 million recorded a modest increase over last years
£118.4 million, this masked a reasonable improvement in our more specialised
activities and a decline in our historic P.C. oriented business. That said, our
unit volumes were higher and we believe we have increased our market share.
Continued price erosion in the P.C. market has, however, reduced the value of
sales and the value of our gross margin per unit fell correspondingly.



The results also obscured the improved profit contribution from our specialist
areas and the total loss per share of 0.58p against a positive 0.18p in the
corresponding period of last year was due to losses in the P.C. business.



The improvement in our specialist areas was necessarily accompanied by a
commensurate evolutionary growth in their overheads and which distorts the view
of the ongoing achievements in overhead reductions in our volume areas.



The group remains debt free and had cash as at 31st December 2002 of £3.38
million.



Trading



Despite ongoing channel consolidation and a high level of unit sales, the period
once again demonstrated the manufacturer 's ability to grow unit sales at the
expense of both revenue and more especially margin.



Following confirmation of the HP merger with Compaq, as previously forecast, we
achieved availability and equal trading terms with the pre-merger distributors
within the final weeks of the period, which led to increased stock levels and
debtor levels as at 31 December. Unfortunately, this also coincided with a
further downturn in demand levels for volume PC products in the weeks before
Christmas.



Over recent reports to members, I advised we had taken steps to significantly
reduce costs, and those were successful in our volumes activities. At the full
year I reported staff numbers at year-end were 350 against the 415 of a year
before. Ongoing changes to the trading model, have enabled further reductions to
now 317. We are also continuing to achieve improved efficiencies from fewer
operational facilities. However, despite having taken actions to avoid loss, the
extent of the downturn and trading difficulties, negated anticipated gains.



The higher margin and skills based operations within the digital communications
convergence and networking arena have brought us the anticipated incremental
trading activities. Whilst not immune from the general economic downturn, with
measured and managed evolution within its product offerings, its contribution is
less uncertain.



There has, however, been a slight increase in group overheads over the
comparable period. These relate to structural cost increases to properly support
the trading levels and growth expectations from our newer and profitable areas.



The Balance Sheet



Our £3.38 million of cash at 31st December was accompanied by our ongoing zero
debt status, with Net Assets of £32.18 million (2001: £33.12 million), or 98.5p
per share. In addition, £28,500 was spent on the re-purchase of 50,000 shares
for cancellation.



The preserved financial strength, benefited from appropriate, pre-emptive
management actions of a year ago. Although the further sales downturn largely
dissipated the benefits. The close focus on key ratios avoided a worse outcome
within the limited viable trading opportunities available to ourselves.



Dividend



At the full year, it was necessary to draw attention to the need for dividend
policies to reflect trading and ensure our healthy balance sheet is not
compromised, pending a return to the cash demands of normal trading levels. We
are recommending an interim dividend of 1p net, down from last year's 2.2p.



The proposed dividend will be payable on 9th May, 2003 to members on the
Register as at 22nd April, 2003



Outlook



Within an uncertain and higher taxed commercial economy, any short-term market
recovery is unlikely. The extensive consolidations of the past year should
provide the I.T. hardware sector with the opportunity to commercially mature
from a revenue growth focus, and rebase itself on one based more traditionally
on the value of the working capital employed.



Your Board is confident, if understandably very cautious, of a satisfactory
outcome for the current trading year as a whole.



D.M.Phillips

Chairman

20th February, 2003




CONSOLIDATED UNAUDITED PROFIT AND LOSS ACCOUNT



For the six months ended 31st  December 2002


                                                            6 months           6 months           12 months
                                                             ended               ended              ended
                                                         31st  December     31st  December        30th June
                                                              2002               2001                2002
                                                          (Unaudited)         (Unaudited)         (Audited)

                                                             £'000               £'000              £'000

Turnover                                                    119,266             118,410            250,410
Cost of sales                                              (111,359)           (110,719)          (231,093)

Gross profit                                                 7,907               7,691              19,317

Net operating expenses                                      (8,237)             (7,770)            (19,288)

Operating (loss)/profit                                      (330)               (79)                 29

Exceptional profit on sale of  fixed assets in                                    93                 321
continuing operations

Interest receivable                                            79                 86                 142
Interest payable                                              (9)                (20)                (36)

(Loss)/profit on ordinary activities before taxation         (260)                80                 456

Taxation credit/(charge)                                       70                (21)               (160)

(Loss)/profit on ordinary activities after taxation          (190)                59                 296
Equity dividends                                             (331)               (715)             (1,353)

Retained loss for period                                     (521)               (656)             (1,057)

Earnings per ordinary share                                 (0.58)p              0.18p              0.91p






All operations are continuing.



There is no difference between the loss on ordinary activities before taxation
and the retained loss for the period stated above, and the historical cost
equivalents.








CONSOLIDATED UNAUDITED INTERIM BALANCE SHEET

At 31st  December 2002


                                                         31st  December     31st  December        30th June
                                                              2002               2001                2002
                                                                               Restated*
                                                           (Unauited)         (Unaudited)         (Audited)
                                                             £'000               £'000              £'000
Fixed assets
Tangible assets                                              5,988               7,446              6,289
Investments                                                  2,836               2,837              2,837
                                                             8,824              10,283              9,126
Current assets
Stocks                                                       17,742             16,261              14,590
Debtors                                                      29,776             29,545              27,023
Cash at bank and in hand                                     3,378               4,555              8,587
                                                             50,896             50,361              50,200
Current liabilities
Creditors - amounts falling due within one year             (26,659)           (26,722)            (25,743)

Net current assets                                           24,237             23,639              24,457

Total assets less current liabilities                        33,061             33,922              33,583

Deferred Taxation                                            (882)               (804)              (882)

Net Assets                                                   32,179             33,118              32,701

Capital and reserves
Called up share capital                                      1,634               1,625              1,623
Share premium account                                        5,724               5,711              5,711
Capital redemption reserve                                    151                 147                148
Profit and loss account                                      24,670             25,635              25,219
Equity Shareholders' Funds                                   32,179             33,118              32,701

Net assets per share                                         98.5p              101.9p              100.7p




*As a result of the adoption of FRS19 the provision for deferred taxation has
been restated, resulting in an increase in the provision of £703,000 at 31
December 2001.








CONSOLIDATED CASH FLOW STATEMENT



For the 6 months ended 31st  December 2002


                                                            6 months           6 months           12 months
                                                             ended               ended              ended
                                                         31st  December     31st  December        30th June
                                                              2002               2001                2002
                                                           (Unauited)         (Unaudited)         (Audited)

                                                             £'000               £'000              £'000

Cash flow from continuing operating activities              (5,130)              4,804              10,525

Returns on investments and servicing of finance
Interest received                                              79                 86                 142
Interest paid                                                 (9)                (20)                (36)
Income from fixed asset investments                            99                 87                 255

Net cash inflow from returns on investments and               169                 153                361
servicing of finance

Taxation
UK corporation tax paid                                        -                 (241)              (913)

Capital expenditure and financial investment
Purchase of tangible fixed assets                            (268)               (730)             (1,090)
Sale of tangible fixed assets                                  23                 190               1,361

Net cash outflow from capital expenditure and                (245)               (540)               271
financial investment.

Equity dividends paid                                          -                   -               (2,015)

Cash (outflow)/inflow before financing                      (5,206)              4,176              8,229

Financing
Purchase of shares                                            (29)               (193)              (214)
Issue of shares                                                26                  -                  -
Debt due beyond a year :
Repayment of secured loan                                      -                 (831)              (831)

Net cash outflow from financing                               (3)               (1,024)            (1,045)

(Decrease)/Increase in cash in the period                   (5,209)              3,152              7,184





NOTES



1.   The Directors have declared an interim net dividend of 1p per ordinary
share ( 2001 - 2.2p ) which  will be paid on 9th May 2003 to shareholders on the
register on 22nd April 2003. The ex-dividend date for the shares will be 16th
April 2003.



2.   The tax charge for the six months ended 31st December 2002 has been based
on the expected tax rate for the year of 30%.



3.  The calculation of earnings per share is based on profits of (£190,000)
(2001 - £59,000)  on the weighted average number of  32,506,524 (2001 -
32,549,625) ordinary shares in issue.



4.   The calculation of net assets per ordinary share is based on 32,675,400 (
2001 - 32,499,000 ) ordinary shares being the number of shares in issue at the
end of the period.



5.   The interim financial statements for the six months ended 31st December
2002 are unaudited. They have been prepared on the basis of accounting policies
consistent with those adopted for the year ended 30th June 2002.  The results
for the year ended 30th June 2002 have been summarised for comparative purposes
within the meaning of Section 240 of the Companies Act 1985.



The full financial statements for the year ended 30th June 2002 were reported on
by the auditors without qualifications or statements under Section 237(2) or (3)
of the Companies Act 1985 and have been delivered to the Registrar of Companies.



 6.   A copy of the Interim Statement is being sent to all shareholders and is
available to the public from the Company's trading office at Namber House, Davis
Road, Chessington, Surrey, KT9 1TT.



7.   These interim results were approved by the Board of Directors on 20th
February 2003.








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