Interim Results - 6 Months to 31 December 1999

Northamber PLC
8 February 2000


CHAIRMAN'S STATEMENT

Interim Results for the six months ended 31st December 1999

Ahead of the Millennium, it was commonly believed there would be a significant
and prolonged downturn in demand for computer systems. The poor trading
conditions encountered during the second calendar quarter of 1999, proved to
be the low point of the year.

Our pre-tax profits for the six months to 31st December were £3.4 million. In
view of the Year 2000 concerns, this compares quite favourably with the £4.6
million for the equivalent period of 1998 and more particularly the £1.7
million recorded for the second half of our financial year ended 30th June
1999.

Earnings per share for the period reduced to 6.7p from last year's 8.6p and
sales declined from £141 million to £133 million. The revenue decrease during
this period, reflected price erosion. 

With further improvements in stock-turns and the associated reduction in stock
exposure, net cash increased to £5.9 million as against net borrowings a year
ago of £36,000. The net asset value per share has increased to 96.6p compared
to 92.2p as at the same period last year.

Dividend
With the increase of our cash balances and a degree of confidence for the
second half of the year the Board recommends an increase of 33% in the interim
dividend to 2.0p (net), which is payable on 4th May 2000 to members on the
register as at 14th April 2000.

Trading
Much has already been made of the pre millennium 'lock down' by many corporate
users. During that period we focussed on enhancing our involvement and
facilitation management expertise providing support for a number of major
Internet based initiatives. We have been particularly active in enhancing our
involvement in and facilitation of those newly emerging e-commerce channels
dealing with the smaller corporate user.

We believe that your company is now one of the few organisations in the UK
that can efficiently and effectively handle the facilitation requirements of
the now fast evolving IT distribution e-business market.

Whilst developing and investing in these new services, overheads increased
slightly and were an additional factor in the lower pre-tax profits for the
half year.

The Board
Marilyn Lee, after many years with the company and Financial Director from
1997, left at the end of December and we wish her every success in her new
venture.

The board is currently seeking a successor to continue our requirement for the
tight control of overheads and working capital.

Outlook
Second half trading has started well and we are seeing an improvement in gross
margins. Also, the fast evolving e-commerce facilitation business
opportunities now emerging offer considerable additional opportunities.

This coupled with our strong cash resources, expectations for renewed growth
in our core activities, gives the board confidence for the remainder of the
year.



D.M.Phillips
Chairman
February 8th 2000
 


CONSOLIDATED UNAUDITED PROFIT AND LOSS ACCOUNT

For the six months ended 31st  December 1999

                           After              Before
                           Exceptional item   Exceptional item
               6 months    6 months           6 months           12 months
                 ended     ended              ended              ended
           31st  December  31st  December     31st December      30th June
                1999           1998              1998              1999
           (Unaudited)     (Unaudited)        (Unaudited)        (Audited)
                £'000          £'000            £'000             £'000

Turnover         133,424      140,851            140,851           277,727
Cost of sales   (122,467)    (128,795)          (128,795)         (253,675)
                 _______      _______            _______           _______
Gross profit      10,957       12,056             12,056            24,052

Net operating
expenses          (7,632)      (7,206)            (7,206)          (17,441)
Exceptional item
  (see Note 6)                   (277)                                (277)
                 _______      _______            _______           _______
Operating profit   3,325        4,573              4,850             6,334
Interest receivable   94           88                 88               130
Interest payable     (83)        (219)              (219)             (426)
                 _______      _______            _______           _______
Profit on
ordinary
activities
before taxation    3,336        4,442              4,719             6,038

Taxation          (1,067)      (1,465)            (1,465)           (1,971)
                 _______      _______            _______           _______
Profit on
ordinary 
activities
after taxation     2,269        2,977              3,254             4,067

Equity dividends    (680)        (517)              (517)           (1,724)
                 _______      _______            _______           _______
Retained profit 
for period         1,589        2,460              2,737             2,343
                 =======      =======            =======           =======

Earnings per
ordinary share     6.7p          8.6p               9.4p             11.8p
                 _______      _______            _______           _______


All operations are continuing

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


CONSOLIDATED UNAUDITED INTERIM BALANCE SHEET
At 31st  December 1999
                   At 31st  December   At 31st  December     At 30th June
                        1999                1998                1999
                   (Unaudited)         (Unaudited)           (Audited)
                        £'000               £'000               £'000

Fixed assets             
Tangible assets         2,747               3,136               3,121
Investments             2,833               2,833               2,833
                       ______              ______              ______
                        5,580               5,969               5,954
                       ______              ______              ______

Current assets
Stocks                 17,445              25,775              12,896
Debtors                38,774              41,532              34,216
Cash at bank
and in hand             5,910               2,395               4,984
                       ______              ______              ______
                       62,129              69,702              52,096

Current liabilities
Creditors - amounts
falling due within
one year               33,808              42,733              25,331
                       ______              ______              ______

Net current assets     28,321              26,969              26,765
                       ______              ______              ______       

Total assets less
current liabilities    33,901              32,938              32,719
Creditors - amounts
falling due after
more than one year      1,058               1,138               1,062
                       ______              ______              ______
Net Assets             32,843              31,800              31,657
                       ======              ======              ======
       
Capital and reserves
Called up share
capital                 1,701               1,725               1,724
Share premium account   5,710               5,706               5,706
Capital redemption
reserve                    48                  46                  47
Profit and loss
account                25,384              24,323              24,180
                       ______              ______              ______
Equity
Shareholders' Funds    32,843              31,800              31,657
                       ======              ======              ======
       
Net assets per share    96.6p               92.2p                91.8p
 
CONSOLIDATED CASH FLOW STATEMENT

For the six months ended 31st December 1999
                       6 months           6months            12 months
                       ended              ended              ended
                       31st  December     31st December      30th June
                       1999               1998               1999
                       (Unaudited)        (Unaudited)        (Audited)
                       £'000              £'000              £'000

Cash flow from
continuing
operating activities    2,583              (1,050)            7,803
                       ______              ______             ______

Returns on investments
and servicing of finance

Interest received          94                  88               130
Interest paid            (159)               (263)             (495)
Income from fixed
asset investments          89                  55               189
                       ______              ______            ______
Net cash inflow /
(outflow) from returns
on investments and 
servicing of finance       24                (120)             (176)
                       ______              ______            ______

Taxation                                                                      
                    
UK corporation tax paid   (26)               (114)           (2,812)
ACT paid                    -                  -                (51)
                       ______              ______            ______
                          (26)               (114)           (2,863)
                       ______              ______            ______
                                  
Capital expenditure and
financial investment

Purchase of tangible
fixed assets              (79)               (629)           (1,104)
Sale of tangible
fixed assets               23                 127               165
                       ______              ______            ______
Net cash outflow
from capital
expenditure and    
financial investment      (56)               (502)             (939)
                       ______              ______            ______

Equity dividends paid  (1,190)             (1,035)           (1,552)
                       ______              ______            ______

Cash inflow /
(outflow) before
financing               1,335              (2,821)            2,273
                       ______              ______            ______


Financing              
Purchase of shares       (409)                -                 (26)
Issue of ordinary
share capital               5                 -                   -
Debt due beyond a year:
(Repayment) / increase
on secured loan            (4)                (48)              (98)
                      _______              ______            ______
Net cash (outflow)/
inflow from financing    (408)                (48)             (124)
                      _______              ______            ______

Increase / (decrease)
in cash in the period     927              (2,869)            2,149
                      =======             =======           =======


NORTHAMBER PLC

Unaudited Interim Statement for the six months ended 31st  December 1999.


NOTES


1. The Directors have declared an interim net dividend of 2p per ordinary
   share ( 1998 - 1.5p ) which will be paid on 4th May 2000 to shareholders on
   the register on 14th April 2000. The ex-dividend date for the shares will
   be 10th April 2000.

2. The tax charge for the six months ended 31st December 1999 has been based
   on the expected tax rate for the year of 32% (1998-31% on the profit before
   exceptional item). 

3. The calculation of earnings per share is based on profits of £2,269,000
   (1998 - £3,254,000 before charging the exceptional item and £2,977,000
   after charging the exceptional item) and on 34,014,000 (1998 - 34,498,696)
   ordinary shares. 

4. The calculation of net assets per ordinary share is based on 34,014,000
   ( 1998 - 34,498,696 )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
   1999 are unaudited. They have been prepared on the basis of accounting
   policies consistent with those adopted for the year ended 30th June 1999.
   The results for the year ended 30th June 1999 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 1999 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. The exceptional item reflected in the accounts for the year ended 30th June
   1999 represented the permanent reduction in value of an investment property
   in Southampton. The carrying value of the property was reduced to £350,000
   resulting in a loss of £277,000 that was charged to the profit and loss
   account as an exceptional item.

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 1 Lion Park
   Avenue, Chessington, Surrey, KT9 1ST.


8. These interim results were approved by the Board of Directors on 7th 
   February 2000.