Interim Results
Northamber PLC
29 February 2008
Northamber plc ('the Company')
Unaudited Interim Statement
for the six months ended 31 December 2007
CHAIRMAN'S STATEMENT
Results
In my last report for the full year 2006/2007, I indicated that despite ongoing
price deflation, there was a marginal trading improvement in the early months of
the period. This has resulted in an increase in comparative revenues with £97
million for the 6 months to end December 2007 against the £95.3 million for the
same period last year.
Gross margins again declined over the period but were offset by further
reductions in overhead costs. Income from investments remained near the level
of the prior year and we incurred negligible financing costs.
The result of the above reductions in costs, increased pre-tax profits to £0.45
million compared with the £0.37million for the first half of 2006. This
together with the repurchase of 1,075,000 shares for cancellation, improved the
earnings per share from 0.78p for the first half 2006/7 to 0.96p for the first
half of 2007/8.
During the period we continued to focus on our trading and stock profiles to
reflected the commercial reality within the market place and avoid excessive or
unrewarding risks. Similarly with our customer data base, the management of
which plays an ever important part in the present economic climate
Working capital management continued to be key. Comparative net operating
expenses were reduced by £0.5 million for the half year. Debtor and Creditor
days remained broadly in line with those for the first half of 2006/7. Working
closely with some of our vendors resulted in some improvements in the ratio of
stock turns.
With the challenging trading environment, once again the performance of our
management team is appreciated.
The Balance Sheet
As at the end of December 2007 the company had cash in hand of £11.8million.
This includes the proceeds from our sale of a 'Lesser Interest' in our
enterprise zone investment property in Arbroath.
The company continues to be both debt free and with all assets tangible and
unencumbered
Net assets at 31st December 2007 were £30.1million or 102.4p per share and after
the repurchase of 1,075,000 shares at a cost of £702,000, compared with net
assets of £30 million last year or 98.5p per share.
Dividend
The balance sheet continues to be exceptionally sound, with a very strong cash
position.
In view of the results for the half year, your Board feels it appropriate to pay
an interim dividend of 1.2p per share (2006 - 1.2p). This interim dividend will
be payable on 9th May 2008 to members on the Register as at 18th April 2008.
Outlook
Subject to both the state of the sector and the overdue need for our major
vendors to accept significant changes to terms are both overdue and necessary,
your Board remains cautiously confident in the outcome for the remainder of the
trading year.
D.M. Phillips
Chairman
29th February 2008
ENQUIRIES
Northamber Plc
David Phillips Tel: 020 8296 7000
Charles Stanley Securities
Philip Davies Tel: 0207 149 6000
Consolidated Income Statement 6 months to 31-12-07
6 months ended 6 months ended Year ended
31.12.07 31.12.06 30.06.07
£'000 £'000 £'000
Revenue 97,020 95,272 182,191
Cost of sales 90,742 88,523 170,174
Gross Profit 6,278 6,749 12,017
Net operating expenses 6,157 6,656 11,975
Profit from operations 121 93 42
Investment revenue 332 312 608
Finance costs - (36) (58)
Profit before tax 453 369 592
Tax (charge)/credit 3 (162) (129) 510
Profit for the period from continuing
operations 291 240 1,102
Earnings per ordinary share 0.96p 0.78p 3.62p
Diluted earnings per share 0.96p 0.78p 3.62p
Consolidated statement of recognised income and expense
Total income recognised directly in equity
Profit for the period 291 240 1,102
Attributable to equity shareholders 291 240 1,102
Reconciliation of Movements in Shareholders' Funds
6 months ended 6 months ended Year ended
31.12.07 31.12.06 30.06.07
£'000 £'000 £'000
Capital items
Dividends - (305) (671)
Purchase of own shares (702) - -
(702) (305) (671)
Total recognised income and
expense for the period 291 240 1,102
Movement in shareholders' funds for the period (411) (65) 431
Opening equity shareholders' funds 30,509 30,078
30,078
Closing equity shareholders' funds 30,098 30,013 30,509
Consolidated balance sheet at 31-12-07
Notes As at 31.12.07 As at 31.12.06 As at 30.06.07
£'000 £'000 £'000
Non current assets
Property, plant and equipment 4 3,416 3,707 3,562
Current assets
Inventories 13,979 17,064 11,728
Trade and other receivables 30,180 30,393 26,324
Cash and cash equivalents 11,811 9,024 14,860
55,970 56,481 52,912
Total assets 59,386 60,188 56,474
Current liabilities
Trade and other payables 29,062 29,286 25,734
Bank overdraft - - -
Current taxation 162 129 167
Provisions - -
29,224 29,415 25,901
Non current liabilities
Deferred tax liabilities 64 760 64
Total liabilities 29,288 30,175 25,965
Net assets 30,098 30,013 30,509
Equity
Share capital 1,469 1,523 1,523
Share premium account 5,734 5,734 5,734
Capital redemption reserve fund 317 264 264
Retained earnings 22,578 22,492 22,988
Equity shareholder's funds 30,098 30,013 30,509
Consolidated cash flow statement 6 months to 31-12-07
6 months to 6 months to Year to
31.12.07 31.12.06 30.06.07
£'000 £'000 £'000
Operating activities
Operating profit from continuing operations 121 93 42
Depreciation of property, plant and equipment 219 231 456
(Profit)/loss on disposal of property, plant and
equipment (1) 72 18
Loss/profit on sale of investment property - - 48
Operating profit before changes in working capital 339 396 564
(Increase)/decrease in inventories (2,251) (8,012) (2,676)
(Increase)/decrease in trade and other receivables (3,856) (2,749) 1,320
Increase/(decrease) in trade and other payables 3,328 8,555 5,308
Cash generated from operations (2,440) (1,810) 4,516
Interest paid - (36) (58)
Income taxes paid (167) (126) (145)
Net cash from operating activities (2,607) (1,972) 4,313
Cash flows from investing activities
Interest received 316 251 533
Proceeds from disposal of property, plant and
equipment 11 26 30
Proceeds from disposal of investment property - 2,434 2,435
Purchase of property, plant and equipment (83) (75) (154)
Income from investments 16 61 75
Net cash from investing activities 260 2,697 2,919
Cash flows from financing activities
Purchase of own shares for cancellation (702) - -
Dividends paid to equity shareholders - - (671)
Net cash used in financing activities (702) - (671)
Net (decrease)/increase in cash and cash equivalents (3,049) 725 6,561
Cash and cash equivalents at beginning of period 14,860 8,299 8,299
Cash and cash equivalents at end of period 11,811 9,024 14,860
Cash and cash equivalents for the purpose of this
statement comprise
Cash and cash equivalents 11,811 9,024 14,860
Bank overdrafts - - -
11,811 9,024 14,860
Notes to the accounts
1. Basis of preparation
These financial statements do not constitute statutory accounts and have not
been audited. They have been prepared in accordance with International
Accounting Standard ((IAS) 34, Interim Financial Reporting.
2. Accounting policies
The policies set out below have been consistently applied to all the periods
presented in these financial statements and will apply for the full year to 30
June 2008.
3. Tax charge
The interim period tax charge is accrued on the estimated average annual
effective tax rate of 35.7% (6 months ended 31 December 2006 - 35%).
4. Property, plant and equipment
6 months to 6 months to Year to
31.12.07 31.12.06 30.06.07
£'000 £'000 £'000
At beginning of period 3,562 3,911 3,911
Additions 83 75 154
Disposals (10) (48) (47)
Depreciation (219) (231) (456)
At end of period 3,416 3,707 3,562
5. Related party transactions
Mr D M Phillips is the ultimate controlling party of the company.
During the period the company payroll manager, Mrs S Matthews was paid £23,652
as salary and £4,139 as benefit. Mrs S Matthews is the wife of the managing
director Mr H W Matthews. In the opinion of the directors the payments were made
on an arms length basis.
6. Availability of Document
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.
This information is provided by RNS
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