Final Results

NORTHAMBER PLC
23 September 1999


NORTHAMBER PLC
Preliminary Results for the year ended 30th June 1999

23 September 1999

Highlights

*  Turnover £277.73 million down 5.4% (1998-£293.46 million)

*  Profit before tax £6.32 million down 28.3% (1998-£8.81 million)   
  (Pre Exceptional FRS 11 Item)

*  Pre-tax margin 2.17% (1998-3.00%)

*  Earnings Per Share of 11.8p down 31.8% (1998-17.3p)

*  Net Asset Value per Share increased by 8% to 91.8p (1998-85p)

*  Return on Capital Employed  19.8% (1998-32.6%)

*  Zero Net Borrowings - Net Cash £3.9 million (1998-£1.7 million)

*  20 times Stock Turn (1998-19)

*  23 Creditor Days (1998-22)

*  38 Debtor Days (1998-38)
*  Proposed Final Dividend of 3.5p per share, a total of 5.0p for the year
   (1998-4.2p) 

David Phillips, Chairman, said:

'These results simply reflect the effects of the over supplied and competitive
trading conditions during the second quarter of 1999 and also the absence of
the anticipated pre-millennium upturn.'


Enquiries:  David Phillips, Chairman
            Marilyn Lee, Financial Director      
            Northamber plc

Telephone:  [phone]






CHAIRMAN'S STATEMENT

Results
The successes earlier in our financial year were followed sadly by the adverse
computer market-place conditions in the second calendar quarter of 1999.
These were unexpected and required steps to be taken to minimise our exposure.
As a consequence, our results are below those reported last year and our own
earlier expectations, but compare favourably with the performance of others
within our immediate sector.

The resultant pre-tax margin was 2.27% (before the exceptional FRS 11 item)
and compares with the 3.00% for the prior year.

Pre-tax profits fell to £6.32 million (before the exceptional FRS 11 item),
compared with the £8.81 million a year ago.  Sales for the twelve months ended
June 30th were £277.73 million as against the £293.46 million for the previous
year.

These results when viewed against the prevalent levels of over supply and
price erosion reflect the strengths of Northamber's tight controls.  The
resultant Earnings per share was 11.8p down from the 17.3p last year.

Net assets of 91.8p per share are a worthwhile improvement on the 85p reported
a year ago.  The £2.15 million increase in net cash over the year improved the
positive cash position at year end to £3.93 million.

Dividend

Our stated policy is to keep the level of dividend under constant review.
This has resulted in a proposed increase that recognises our financial
strength with a final dividend per share of 3.5p.

At 5.0p for the year, the 19% increase in the total dividend compares with the
4.2p for the year ended June 30th 1998.

Trading

The results for the second calendar quarter of 1999 were unexpectedly impeded
by a strong UK market place imbalance between forecast and actual demand.  Of
the three major US based global distributors, two referenced the UK market as
having been significantly difficult.

Oversupply destocking within the sector resulted in increased levels of price
competition and a consequential reduction in the available gross margin across
many product ranges.  That effect on overall margins has since been quantified
for the UK and Germany by one of the US based world-wide distributors as being
a full 1% below that in other European countries.

Price erosion and consequent reduction in annual sales revenue fails to reveal
the significant growth in product shipments and distorts any meaningful annual
growth based comparison.

Despite market confusion, we were successful in maintaining margins on the
majority of product lines, whilst focusing on further cost efficiencies and
reducing our exposure on marginal product sales.  The year end value of our
stocks is below that of last year, it being our policy to avoid stock levels
inconsistent with known demand.  This again reinforces our policy of managed
avoidance of profitless revenue.

The earlier, general expectation of a robust market ahead of the millennium
has so far simply failed to materialise.  Your Board remains committed to
revenue growth from those product areas where we are able to achieve a
satisfactory return on capital employed.


Financial

The success of tight controls over working capital reduced our stock holdings
and improved stock turns.  Trade debtors and creditors continued their
beneficial trend resulting in our strengthened balance sheet and improved cash
position.

Staff

The expanding skills and service based element of our business required an
increase in the number of staff employed particularly on the Channel Assembly
of PCs and Servers.  Over the year the average number of staff increased from
366 to 416.

As a people-based activity and only able to expand with the commitment and
efforts of our staff, we extend our thanks for their strong contribution over
the past year.

The Board

In the period since Tony Caplin joined as a non-executive director, his
presence on the Board has been valuable, involved and enjoyable.  To recognise
his unique and focused contribution and to further strengthen the Board
itself, it is proposed that Tony be appointed non-executive deputy chairman as
at the forthcoming AGM.

Outlook 

In the second quarter of 1999 our sector encountered unfavourable
trading conditions but the market now appears to have stabilised and the new
trading period has started in line with our own expectations.  Return on
capital and margin retention will continue to remain our primary focus, with
margin retention likely to be the main source of profit growth until market
conditions improve further.  The Board is confident of a profitable outcome
for the year ahead.


David Phillips
Chairman
22nd September 1999



CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the year ended 30th June 1999

                           Notes   1999        1998
                           
                                  £'000      £ '000
                                                 As
                                           restated
                                                   
Turnover                        277,727     293,461
Cost of sales              2   (253,675)  (266,708)
                                _______    ________
Gross Profit                     24,052      26,753
                                                   
Net operating expenses     2                       
Distribution costs              (10,887)    (9,787)
                                     
Administration expenses                            
- Exceptional item         3      (277)           -
- Other administrative costs    (6,971)     (8,225)
Other operating income              417         458
                                _______    ________
                                      
Operating Profit                  6,334       9,199
                                                   
Interest receivable                 130         113
Interest payable                  (426)       (501)
                                _______    ________
                                                   
Profit on ordinary                                 
activities before taxation        6,038       8,811
Taxation                        (1,971)     (2,858)
                                _______    ________

Profit on ordinary                                 
activities after taxation         4,067       5,953
Equity dividends           5     (1,724)     (1,452)
                                _______    ________
Retained profit for period        2,343       4,501
                                =======    ========
                                                   
Earnings per ordinary      4      11.8p       17.3p
share
                                                   
Diluted earnings per       4      11.7p       17.1p
share
                                                   

CONSOLIDATED BALANCE SHEET

At 30th June 1999

                           Notes   1999        1998
                                  £'000       £'000
                                                   
Fixed Assets                                       
Tangible assets                   3,121       3,652
Investments                       2,833       2,483
                                _______    ________
                                  5,954       6,135
                                _______    ________
                                                   
Current Assets                                     
Stocks                           12,896      13,816
Debtors - amounts falling due                         
after more than one year              -         363
Debtors - amounts falling due                         
within one year                  34,216      36,074
Cash at bank and in hand          4,984       3,355
                                _______    ________
                                 52,096      53,608
                                                   
Current Liabilities                                
Creditors - amounts                               
falling due within one year      25,331      29,217
                                _______    ________
Net current assets               26,765      24,391
                                _______    ________
                                                   
Total assets less current        32,719      30,526
liabilities
                                                   
Creditors - amounts               1,053       1,151
falling due
after more than one year
                                                   
Provisions for                        9          35
liabilities and charges         _______    ________
                                                   
Net Assets                       31,657      29,340
                                =======    ========
                                                   
Capital and reserves                               
Called up share capital           1,724       1,725
Share premium account             5,706       5,706
Capital redemption reserve           47          46
Profit and loss account          24,180      21,863
                                _______    ________
                                                   
Equity Shareholders' Funds       31,657      29,340
                                =======    ========
                                                   


CONSOLIDATED CASH FLOW STATEMENT

For the year ended 30th June 1999

                           Notes   1999        1998
                                  £'000       £'000

Cash inflow from                                   
continuing operating       6      7,803      12,059
activities
                                _______    ________
Returns on investments                             
and servicing of finance
Interest received                   130         113
Interest paid                     (495)       (481)
Income from fixed asset            189         177
investments
                                _______    ________
                                                   
Net cash outflow from             (176)       (191)
returns on investments                             
and servicing of finance        _______    ________
                                                   
Taxation                                           
UK corporation tax paid         (2,812)     (2,816)
ACT paid                           (51)           -
                                _______    ________
                                (2,863)     (2,816)
                                                   
Capital expenditure and                            
financial investment
Purchase of tangible            (1,104)       (620)
fixed assets
Sale of tangible fixed              165          39
assets
                                _______    ________
Net cash outflow from                              
capital expenditure and           (939)       (581)
financial investment            _______    ________
                                                   
Equity dividends paid           (1,552)     (1,242)
                                _______    ________
Cash inflow before                2,273       7,229
financing
                                _______    ________
                                                   
Financing                                          
Purchase of shares                 (26)           -
Issue of ordinary share               -          50
capital
Debt due beyond a year :                           
Repayment of secured loan          (98)        (90)
                                _______    ________
                                                   
Net cash outflow from             (124)        (40)
financing
                                _______    ________
Increase in cash in the       6   2,149       7,189
period
                                =======    ========

NOTES

1.    Accounting policies
The financial information set out above does not constitute the Group's
statutory accounts for the years ended 30th June 1998 or 30th June 1999, but
is derived from those accounts. The statutory accounts for 30th June 1998 have
been delivered to the Registrar of Companies and those for 1999 will be
delivered following the Group's Annual General Meeting. The auditors have
reported on these accounts, their reports were unqualified and did not contain
statements under S237(2) or (3) of the Companies Act 1985.

2.    Restatement of Cost of Sales and Net Operating Expenses
Following a review of profit and loss account classifications certain
comparative profit and loss figures have been amended where appropriate in
line with the new classifications.

3.    Exceptional Item
The Directors have undertaken a review of the Group's fixed assets in
accordance with FRS11. As a result of this review, the Directors consider that
it is more appropriate to reclassify a property in Southampton as an
investment property as the Directors have concluded that the property is
unlikely to be utilised for the Group's core activities. As part of this
process, the Directors have reviewed the market value of the property and
consider that this is less than its current net book value. This reduction in
value is considered to be permanent. Accordingly, the carrying value of the
property has been reduced to £350,000 and the loss of £277,000 has been
charged to the profit and loss account as an exceptional item.

4.    Earnings per ordinary share
The calculation of earnings per ordinary share is based on the profit after
taxation of £4,067,000 (1998: £5,953,000) and on 34,496,613 ordinary shares
(1998: 34,455,363). The number of ordinary shares for  the years ended 30th
June 1999 and 30th June 1998 is the weighted average in issue for each year.

Computation of Earnings per share for 1999

                      Per share     Earnings       Shares

                                                   
Net profit for year                4,067,000
            
Weighted average shares                        34,496,613
outstanding during year

Basic earnings per share   11.8p                    

Dilutive effect of options                        373,760

Diluted earnings per       11.7p   4,067,000   34,870,373
share                                                                         
  

5.    Dividend
An interim dividend has been paid during the year of 1.5p per share. A final
dividend of 3.5p per share will be paid on 7th December 1999 to all members on
the register at the close of business on 12th November 1999. The ex-dividend
date for the shares will be 8th November 1999.

6.    Cash flow

a) Reconciliation of operating profit to operating cash flows

                                   1999        1998
                                  £'000       £'000
Continuing operations                              
Operating profit                  6,334       9,199
Income from fixed assets          (189)       (177)
investments

Depreciation of tangible            867         767
fixed assets

(Profit) / loss on sale            (25)          10
of tangible fixed assets

Decrease in stocks                  920       1,277

Decrease / (increase) in          1,792     (3,442)
trade debtors

Decrease in other debtors            36         483

Decrease / (increase) in   
prepayments and accrued income       82        (13)

Increase in trade creditors         302       3,266

(Decrease) / increase in        (2,163)         910
other taxation and social
security

(Decrease) in accruals            (430)       (221)
and deferred income

Exceptional Item                    277           -
                                _______    ________
Net cash inflow from                               
continuing operating              7,803      12,059
activities
                                =======    ========

b)  Reconciliation of net cash flow to movement in net funds

Increase in cash in the           2,149       7,189
period
Cash outflow from changes            98          90
in debt
                                _______    ________
                                                   
Change in net debt                2,247       7,279
resulting from cash flows
and the movement in net
debt in the period

Net funds / (debt) as at          1,683     (5,596)
1st July 1998
                                _______    ________
Net funds at 30th June  1999      3,930       1,683

                                =======    ========

c)  Analysis of net funds

                    At 1st July    Cash     At 30th
                           1998    Flow   June 1999
                          £'000    £'000      £'000
                                                   
Cash at bank and in hand  3,355    1,629      4,984
Overdrafts                (521)      520        (1)
                        -------  -------    -------
                          2,834    2,149      4,983
Debt due after more     (1,151)       98    (1,053)
than one year
                        -------  -------    -------
                          1,683    2,247      3,930
                        =======  =======    =======

A copy of this report is being sent to all shareholders.  Copies are available
to the public on request from the Company's offices

1 Lion Park Avenue
Chessington
Surrey
KT9 1ST

The Company's registered office is

1-3 Union Street
Kingston-upon-Thames
Surrey KT1 1RP