Interim Results

Northamber PLC
24 February 2004



                                 Northamber PLC

                     Interim Report & Accounts (Unaudited)
                    For Six Months Ended 31st December 2003



Chairman's Statement

Results


The Board is pleased to report pre tax profits of £659,000 for the six months to
December 2003, a marked improvement from the £260,000 loss reported a year ago.
This is especially pleasing given the difficult conditions caused by the weak
dollar, which fuelled further price erosion of an estimated 15% in many of our
product categories.  By further increasing sales volumes, and we believe market
share, we have managed to hold the overall decline in sales to less than 4%,
which at £115 million for the period, we consider is a very satisfactory
outcome.


We also made further progress in reducing overheads and especially evolving our
business model away from selling high volume but profitless products.  We have
continued with our policy of concentrating our sales efforts on our more
profitable product areas.


Given these results and the strength of our balance sheet, we have decided to
increase the interim dividend by 10% to 1.1p per share from Earnings Per Share
of 1.43p compared with a loss of 0.58p in the corresponding period of last year,
which itself benefited from a small tax credit.


As at 31 December 2003, we had net cash balances of £5.2m equivalent to over 16p
per share and our net asset value per share increased to 100p from 98.3p at the
end of June 2003.


Trading


As mentioned above, the US Dollar weakness over the period, coupled with
industry trends, resulted in further downward price pressure on the product
ranges which we distribute and which we estimate to have been circa 15%.


The necessary tight management of overheads, that key relationship between
actual costs, sales revenues and gross margin in monetary as well as percentage
terms, is a core factor in any business model such as ours. The major difficulty
in a deflationary price environment is the ability to reduce monetary overheads
in line with the relevant available cash profit margin.


Our business strategy, and the evolving and intended changes to our business
model and vendor product focus, resulted in both a better mix in terms of margin
and reduced overheads.  This was despite an overall increase in unit volumes.
We were therefore able to increase our gross profit contribution despite a near
4% decline in the value of overall sales.


The Balance Sheet


During the period we purchased and cancelled 1.1 million shares at a cost of
£662,000.  Despite this our balance sheet remains very strong with no debt and
£5.2m of cash at 31 December 2003.  Despite a small decrease in total net assets
with fewer shares outstanding net asset value per share increased to 100p.  The
daily focus on the key business ratios remains at the forefront of our
management controls.


Dividend


I have previously drawn attention to dividend policies necessarily reflecting
trading and the maintenance of a healthy balance sheet. As a consequence of
these results, your Board feels it appropriate to increase the 1p per share
interim dividend paid last year by 10% to 1.1p per share.


The proposed dividend will be payable on 7th May 2004 to members on the Register
as at 13th April 2004.


OUTLOOK


Within a sector which has encountered more than its fair share of downturns and
with the majority of IT products produced within a Dollar based context, the
ongoing US Dollar weakness will require very tight focus.  The cost base model
of our sector is, however, already considerably over-stretched and the
opportunities are clearly there for well based, financially proven and
logistically strong companies such as ourselves.


Those pressures on competitors and for that matter suppliers with less flexible
resource and capital, should encourage positive movement towards a more
commercially mature model and away from a revenue growth focus. That then
enabling the sector to rebase itself more traditionally on the value of the
working capital employed.


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


D.M. Phillips
Chairman

24 February 2004                                                   

Enquiries
David Phillips, Chairman                             Tel: [phone]
Northamber plc

Philip Davies
Charles Stanley                                      Tel: [phone]




 CONSOLIDATED UNAUDITED PROFIT AND LOSS ACCOUNT                                                                      
  For the six months ended 31st December 2003                                                                         
                                                         6 months ended 31      6 months ended 31   12 months ended 30
                                                                  December               December                 June 
                                                                      2003                   2002                 2003 
                                                               (Unaudited)            (Unaudited)            (Audited) 
                                                                      £000                   £000                 £000 
 
                         Turnover                                  114,920                119,266              240,481
                          Cost of Sales                          (105,417)              (109,843)            (221,563)

                          Gross Profit                               9,503                  9,423               18,918 

                          Net operating expenses                   (8,943)                (9,753)             (18,513)

                          OPERATING PROFIT/(LOSS)                      560                  (330)                  405 

                          Interest Receivable                          100                     79                  103
                          Interest Payable                             (1)                    (9)                 (86)

                          Profit/(Loss) on                             659                  (260)                  422 
                          ordinary activities                                                                         
                          before taxation                                                                             

                          Taxation (charge)/credit                   (198)                     70                (116)

                          Profit/(Loss) on                             461                  (190)                  306 
                          ordinary activities                                                                         
                          after taxation                                                                              

                          Equity Dividends                           (344)                  (331)                (977) 

                          Retained Profit/(loss)                       117                  (521)                (671) 
                          for period                                                                                  

                          Earnings/(Loss) per                        1.43p                 (0.58)p                0.94p 
                          ordinary share                                                                              

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.



The comparative figures of cost of sales and net operating expenses for the half
year ended 31 December 2002 have been reclassified in line with the audited
figures for the year ended 30 June 2003.


CONSOLIDATED UNAUDITED INTERIM BALANCE SHEET
As at 31 December 2003


                                               At 31 December            At 31 December             At 30 June
                                                         2003                      2002                   2003
                                                  (Unaudited)               (Unaudited)              (Audited)
                                                         £000                      £000                   £000
Fixed Assets
   Tangible Assets                                      5,238                     5,988                  5,575

   Investments                                          2,837                     2,836                  2,837

                                                        8,075                     8,824                  8,412
Current Assets
   Stock                                               21,390                    17,742                 13,214

   Debtors                                             27,128                    29,776                 27,249

   Cash at bank and in hand                             5,190                     3,378                  7,165

                                                       53,708                    50,896                 47,628

Current liabilities
Creditors due within 1 year                          (29,623)                  (26,659)               (23,324)

Net current assets                                     24,085                    24,237                 24,304

Total assets less current liabilities                  32,160                    33,061                 32,716

Deferred Taxation                                       (859)                     (882)                  (859)

Net Assets                                             31,301                    32,179                 31,857

Capital and reserves

Share Capital                                           1,565                     1,634                  1,620

Share Premium                                           5,724                     5,724                  5,724

Capital Redemption Reserve                                220                       151                    165

Profit and Loss                                        23,792                    24,670                 24,348

Equity shareholders' funds                             31,301                    32,179                 31,857

Net assets per share                                   100.0p                     98.5p                  98.3p


CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31st December 2003



                                                                                                                      
                                   6 months ended 31 December    6 months ended 31 December    12 months ended 30 June 
                                                         2003                          2002                       2003 
                                                  (Unaudited)                   (Unaudited)                  (Audited) 
                                                         £000                          £000                       £000
 
  Cash outflow from continuing                        (1,171)                       (5,130)                      (365)
  operating activities                                                                                                

  Returns on investments and servicing of finance                                                                     
  Interest received                                       100                            79                        103

  Interest paid                                           (1)                           (9)                       (86)

  Income from fixed asset                                  99                            99                        219
  investments                                                                                                         

  Net cash inflow from returns                            198                           169                        236
  on investments and servicing                                                                                        
  of finance                                                                                                          

  Taxation                                                                                                            
  UK corporation tax (paid) /                           (202)                             -                        179
  received                                                                                                            

  Capital expenditure and financial investment                                                                        

  Purchase of tangible fixed                            (169)                         (268)                      (408)
  assets                                                                                                              
  Sale of tangible fixed assets                            31                            23                         62

  Net cash outflow from                                 (138)                         (245)                      (346)
  capital expenditure and                                                                                             
  financial investment                                                                                                

  Equity dividends paid                                     -                             -                      (978)

  Cash outflow before                                 (1,313)                       (5,206)                    (1,274)
  financing                                                                                                           

  Financing                                                                                                           
  Purchase of shares                                    (662)                          (29)                      (174)
  Issue of shares                                          -                             26                         26

  Net cash outflow from                                 (662)                           (3)                      (148)
  financing                                                                                                           

  Decrease in cash in the                             (1,975)                       (5,209)                    (1,422)
  period                                                                                                              

NORTHAMBER PLC
Unaudited Interim Statement for the half year ended 31st December 2003.


NOTES



1. The Directors have declared an interim net dividend of 1.1p per ordinary
share (2002 - 1.0p) which  will be paid on 7th May 2004 to shareholders on the
register on 13th April 2004. The ex-dividend date for the shares will be 7th
April 2004.



2. The tax charge for the six months ended 31st December 2003 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  £461,000
(2002 - loss £190,000) on   the weighted average number of 32,243,565 (2002 -
32,506,524) ordinary shares in issue.



4. The calculation of net assets per ordinary share is based on 31,299,000
(2002 - 32,675,400) 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
2003 are unaudited.  They have been prepared on the basis of accounting policies
consistent with those adopted for the year ended 30th June 2003.  The results
for the year ended 30th June 2003 have been summarised for comparative purposes
within the meaning of Section 240 of the Companies Act.



6. The full financial statements for the year ended 30th June 2003 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.



7. 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, 23
Davis Road, Chessington, Surrey, KT9 1HS.



8.  These interim results were approved by the Board of Directors on 24
February 2004.



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