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 Â£97 million for the 6 months to end December 2007 against the Â£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 Â£0.45 million compared with the Â£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 Â£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 Â£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 Â£30.1million or 102.4p per share and after the repurchase of 1,075,000 shares at a cost of Â£702,000, compared with net assets of Â£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 Â£'000 Â£'000 Â£'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 Â£'000 Â£'000 Â£'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 Â£'000 Â£'000 Â£'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 Â£'000 Â£'000 Â£'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 Â£'000 Â£'000 Â£'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 Â£23,652 as salary and Â£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 The company news service from the London Stock Exchange

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