Final Results

RNS Number : 5733Z

Northamber PLC

24 September 2009

 



Northamber plc

Preliminary Results for the year ended 30 June 2009

Chairman's Statement

Results

Revenue for the year to 30th June 2009 reflected the severe recession in our core commercial-user marketplace together with some resultant price erosion. As predicted in my 3rd quarter statement, revenue continued to decline with £139.3 million for the year, some 22% less than the £179.7 million for the previous year. Such hazardous trading conditions did not assist sales when we necessarily sought lower stock and debtor exposures.

At the pre-tax level, profit of £47,000 represents a significant recovery over the £304,000 pre-tax interim loss reported last 19th February for the half year. (30th June 2008: £627,000).

Net Assets per Share at 89.4p only fell a marginal 0.7p from the 90.1p per share at June 2008. This result is after £465,000 of dividends and £114,000 spent re-purchasing shares for cancellation.  The Net Asset Value of £25.95 million compared with the £26.48 million last year whilst Net Cash improved by £816,000 to £14.1 million against the £13.3million for the prior year.

Overheads were yet again the focus and lower than those for the previous year.  Distribution Costs were reduced by £1.36 million (21.7%); Administration Costs were reduced by £745,000 (13.4%), a total reduction of £2.1 million.  However, even such significant cost savings fell short of satisfying the reduction in Gross Profit. This resulted in an Operating Loss of £320,000 compared with the Operating Profit of £25,000 in the previous year.

Nonetheless, in the exceedingly difficult conditions, I have to consider this result creditable, and thank all members of the company for their efforts and contribution

Interest income for the period was inevitably significantly lower following the massive reduction in available interest rates.  As detailed below, we generated positive cash flows during the year and at the year end had cash balances of £14.1 million compared with £13.3 million for the previous year. 

The tax charge was reduced by adjustments affecting the deferred tax liabilities.  The result was a post-tax profit for the year of £52,000 (EPS 0.18p) compared with £405,000 a year ago (EPS 1.36p).

Balance Sheet

A proven feature is our ability to manage working capital.  This delivers demonstrably sound Critical Key Performance Indicators for the group such as Stock Turns, Debtor and Creditor days. 

Whilst Debtor and Creditor days vary from year to year, over the last 3 years we have gradually increased the rate of stock turnover per annum. For the year just ended we achieved a stock turn of 18.1 times compared with 16.6 times for the previous year.

One crucial item is, as always, cash. We did achieve positive cash flow in the year after paying dividends of £465,000 and £114,000 repurchasing shares for cancellation. At year end our cash balances were £14.1 million compared with £13.3 million at the end of June 2008.

Staff

Trading conditions necessitated average staff numbers falling to 165 from the 190 average of a year ago.  Again we are proud of the way in which all members of our staff continue to perform in these extremely trying conditions.

Dividend

After due consideration of the trading conditions, the results achieved and the current outlook, your Board is proposing a final dividend of 1.0p per share, which combined with the interim dividend of 0.6p per share makes a total for the year of 1.6p (2008: 2.2p).

Outlook

Whilst significant new franchises have been secured since year-end, with extended delivery time frames and launch delays, their impact is unlikely to have any swift or strong contribution in the current half.  With the experience of the recent past and current negative predictions, it is not possible to be sanguine about the future.  

We shall therefore continue, as we have in the past, to manage our resources to the best of our ability and to seek opportunities wherever we can.

D.M.Phillips

Chairman 

24 September 2009

For further information, contact:

Northamber Plc                      David Phillips            020 8296 7000

Charles Stanley Securities        Philip Davies            020 7149 6000

CONSOLIDATED INCOME STATEMENT
For the year ended 30 June 2009
	2009		2008
	£'000		£'000
Revenue	139,275		179,677
Cost of Sales	(129,853)		(167,801)
Gross Profit	9,422		11,876
Distribution cost	(4,919)		(6,283)
Administrative expenses	(4,823)		(5,568)
Profit from operations	(320)		25
Investment revenue	367		602
Finance Costs	-		-
Profit before tax	47		627
Tax	5		(222)
Profit for the year from operations	52		405
Total basic earnings per ordinary share	0.18p		1.36p
Total diluted earnings per ordinary share	0.18p		1.36p

CONSOLIDATED BALANCE SHEET
At 30 June 2009
	2009		2008
	£'000		£'000
Net current assets
Property, plant and equipment	2,968		3,267
Current assets
Inventories	7,173		10,134
Trade and other receivables	20,112		22,978
Cash and cash equivalents	14,124		13,308
	41,409		46,420
Total assets	44,377		49,687
Current liabilities
Trade and other payables	(18,385)		(22,952)
Tax liabilities	(40)		(210)
	(18,425)		(23,162)
Non current liabilities
Deferred tax liabilities	(2)		(48)
Total liabilities	(18,427)		(23,210)
Net assets	25,950		26,477
Equity
Share capital	290		294
Share premium account	5,734		5,734
Capital redemption reserve	1,497		1,493
Retained earnings	18,429		18,956
Equity shareholders' funds	25,950		26,477

CONSOLIDATED CASH FLOW STATEMENT
For the year ended 30 June 2009
	2009		2008
	£'000		£'000
Cash inflow from operating activities
Operating profit from continuing operations	(320)		25
Depreciation of property, plant and equipment	369		425
(Profit)/loss on disposal of property, plant and equipment	(6)		(10)
	43		440
Decrease in inventories	2,961		1,594
Decrease in trade and other receivables	2,866		3,346
(Decrease) in trade and other payables	(4,567)		(2,782)
Cash generated from operations	1,303		2,598
Interest paid	-		-
Income taxes paid	(211)		(195)
Net cash from operating activities	1,092		2,403
Cash flow from investing activities
Interest received	355		567
Proceeds from disposal of property, plant and equipment	18		14
Purchase of property, plant and equipment	(82)		(134)
Rental income	12		35
Net cash from investing activities	303		482
Cash flows from financing activities
Purchase of own shares for cancellation	(114)		(3,791)
Dividends paid to equity shareholders	(465)		(646)
Net cash used in financing activities	(579)		(4,437)
Net increase/(decrease) in cash and cash equivalents	816		(1,552)
Cash and cash equivalents at beginning of year	13,308		14,860
Cash and cash equivalents at end of year	14,124		13,308
Cash and cash equivalents for the purpose of this statements  comprise:
Cash and cash equivalents	14,124		13,308
Bank overdraft	-		-
	14,124		13,308

  STATEMENTS OF CHANGES IN EQUITY

Consolidated statement of changes in equity

At 30 June 2009

		Share	Capital
	Share	premium	redemption	Retained	Total
	capital	account	reserve	earnings	equity
	£'000	£'000	£'000	£'000	£'000
Balance at 1 July 2007	1,523	5,734	264	22,988	30,509
Profit for the year	-	-	-	405	405
Total recognised income for the year	-	-	-	405	405
Dividends	-	-	-	(646)	(646)
Purchase of own shares	(1,229)		1,229	(3,637)	(3,637)
Transaction costs of purchase	-	-	-	(154)	(154)
Balance at 30 June 2008	294	5,734	1,493	18,956	26,477
Balance at 1 July 2008	294	5,734	1,493	18,956	26,477
Profit for the year	-	-	-	52	52
Total recognised income for the year	-	-	-	52	52
Dividends	-	-	-	(465)	(465)
Purchase of own shares	(4)	-	4	(113)	(113)
Transaction costs of purchase	-	-	-	(1)	(1)
Balance at 30 June 2008	290	5,734	1,497	18,429	25,950

  Notes:

1.      Financial information

The financial information set out above does not constitute the group's statutory accounts for the years ended 30 June 2008 or 30 June 2009, but is derived from those accounts. The statutory accounts for the year ended 30 June 2008 have been delivered to the Registrar of Companies and those for 2009 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 s.498(2) or (3) of the Companies Act 2006. The information contained in this statement does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.

2.   Earnings per ordinary share

The calculation of total basic and diluted earnings per share is based on the following data:
			2009		2008
			£'000		£'000
Earnings for the purpose of total basic earnings per share being net profit attributable to equity holders of the parent company
			52		405
Effect of dilutive shares			-		-
Earnings for the purpose of diluted earnings per share			52		405
			2009		2008
			Number		Number
Number of shares
Weighted average number of shares for the purpose of
total basic earnings per share			29,171,182		29,809,125
effect of dilutive potential of shares - share options			-		-
			29,171,182		29,809,125

3.   Dividends

A final dividend of 1.0p will be paid on 12 January 2010 to those members on the register at close of business on 4 December 2009.

4.   The annual report accounts for the year ended 30 June 2009 will be posted to shareholders in due course and the Annual General Meeting will be held on 10 November 2009.

The Company's registered office is Namber House, 23 Davis Road, Chessington, Surrey KT9 1HS.

 

END

 

 

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