Final Results

Northamber PLC 25 September 2001 Northamber Plc Preliminary Results for the Year Ended 30th June 2001 HIGHLIGHTS Year ended Year ended 30th June 2001 30th June 2000 Sales Revenue £299 million £284 million Profit before tax £5.5 million £7.5 million Earnings per share 11.3p 15.1p Net assets per share 105.8p 101.1p Return on capital employed 15.54% 22.12% Creditor days 20 19 Debtor days 34 44 Net Cash/(Borrowings) £572,000 (£848,000) Proposed Final Dividend 4.0p per share. A total of 6.2p for the year, a 3.3% increase on the 6.0p last year. David Phillips, Chairman, commented:- 'The second half contribution to these results was achieved during market conditions far different from those reported at the interim stage. The Board is pleased that Northamber continued to trade profitably in the second half which proves its resilience in adverse conditions. Net cash inflow over the year was £1.42 million with a further £1.44 million spent on share buy backs. There was a positive cash position at year end. Net Assets rose to 105.8p per share and show a pleasing improvement on the 101.1p reported a year ago.' Enquiries: David Phillips Chairman Northamber plc 020 8974 2525 Robert Corden Charles Stanley & Company Limited 020 7739 8200 Chairman's Statement In the current volatile market conditions, the Board feels that it is appropriate that we bring forward the intended release date of the preliminary results for the year ended 30th June 2001 by a few days. Results The second half contribution to these results was achieved during market conditions far different from those reported at the interim stage. The Board is pleased that Northamber continued to trade profitably in the second half which proves its resilience in adverse conditions. The slowdown in marketplace demand during the latter part of the year under review affected our own trading and precipitated our announcement in June that our results would therefore be lower than originally expected. Sales revenues show an increase to £299 million from the £284 million reported a year ago, although this does not reflect our current increased levels of trading activity. The downturn in demand during our final quarter led to further extensive price erosion, which took its toll on the comparative measure within that result. Our own trading experience for the first eight trading months was largely in line with expectations. Close followers of the Company will be aware that profit in the sector is generated in two tranches. The first is the traditional difference between costs and sales. The other is linked to pre-agreed unit volume performance targets with our major suppliers. In the then prevailing market conditions of late spring, we decided, correctly in hindsight, not to risk the pursuit of those additional profits and a risk of consequentially larger exposure to stocks. The second half contribution to profit was less than our earlier expectations but given the prevailing conditions, the Board regards it as a satisfactory outcome which compares favourably with the performance of our peer group. Pre-tax profits of £5.5 million reflect market conditions when compared with the £7.5 million of a year ago. This reduction reflects the lack of marketplace certainty during our final quarter and our decision not to seek to reach the purchasing targets necessary to achieve the additional volume related rebates from some of our vendors. Dividend The Company's balance sheet continues to be very strong and against this background, your Directors have once again decided to pay an increased dividend for the year. The proposed final dividend of 4.0p makes a total of 6.2p for the year and a 3.3% increase in the total dividend when compared with last year. Financial Our customary tight controls over working capital continue, as demonstrated by our strengthened balance sheet and improved cash position. Available funds enabled further purchases of 1.22 million of our own shares for cancellation and enhanced values for the remainder. Earnings per share at 11.3p compare with 15.1p last year and reflect the Board's more prudent approach towards volume rebates from some of our vendors and which would have necessitated the resultant higher stock levels against a marketplace downturn in demand and product prices. Net cash inflow over the year was £1.42 million with a further £1.44 million spent on share buy backs. There was a positive cash position at year end. Net Assets rose to 105.8p per share and show a pleasing improvement on the 101.1p reported a year ago. During the second half of the year we purchased a nearby newly built 18,000 square foot office building for a total cash cost of just over £3million. This has since enabled cost savings from the centralisation of our call centres, customer services and all support facilities. The new call centre facility is in addition to the new and more efficient distribution warehouse facility at Weybridge, which opened in April 2001, also coming on stream. These have enabled the freehold of one of our three operational premises to be sold and the leases of two of the remainder to be terminated without any material cost. Staff As a people based activity, able only to expand with the commitment and efforts of our staff, we extend our thanks for their strong contribution in such difficult trading conditions over the past year. Outlook Against a background of continuing uncertain market conditions, we have initiated cost reductions in order to achieve improved operating efficiencies. These have been achieved via changes in premises and resultant reductions in staff numbers The commercial I.T. user marketplace, we primarily address, has shown more resilience than the consumer sector. Recent events make it advisable to share trading performance since the start of the new financial year with shareholders. I am pleased to report that estimated gross margins have been maintained, even after taking account of ongoing price erosion. Sales revenues, despite the downturn, are some 86% of those for the same period last year. Shareholders will be aware that trading levels this time last year pre-dated the well documented decline in sales in the sector in the quarter to June 2001. The Board continues to believe that the business is well poised to take full opportunity from any upturns within the commercial I.T. market. As always, margin retention, the balance sheet and return on capital, remain our primary focus. With the strengths of the available resources, it remains your Board's intention to continue with its programme of share buy-backs at appropriate price levels. Your Board is confident of a profitable outcome for the year ahead. David Phillips Chairman 24th September 2001 Northamber Plc Preliminary Results for the year ended 30th June 2001 Consolidated Profit And Loss Account Notes Year ended Year ended 30 June 2001 30 June 2000 £'000 £'000 Turnover 299,170 284,270 Cost of sales (274,808) (259,059) ------------ ------------ Gross profit 24,362 25,211 Distribution costs (11,250) (11,080) Administrative expenses (7,821) (6,880) Other operating income 486 501 ------------ ------------ Operating profit 5,777 7,752 Interest receivable 80 144 Interest payable (349) (373) Profit on ordinary activities before taxation 5,508 7,523 Tax on profit on ordinary activities (1,762) (2,372) ------------ ------------ Profit on ordinary activities after taxation 3,746 5,151 Equity dividends 2 (2,000) (2,023) ------------ ------------ Retained profit for year 1,746 3,128 ======= ======= Earnings per ordinary share 3 11.3p 15.1p Diluted earnings per share 3 11.2p 15.0p Northamber Plc Preliminary Results for the year ended 30th June 2001 Consolidated Balance Sheet 30 June 2001 30 June 2000 £'000 £'000 Fixed assets Tangible assets 7,320 2,850 Investments 2,837 2,833 ---------- ---------- 10,157 5,683 ---------- ---------- Current assets Stocks 14,944 11,262 Debtors - amounts falling due within one year 33,025 41,294 Cash at bank and in hand 1,403 1,032 ---------- ---------- 49,372 53,588 Current liabilities Creditors - amounts falling due within one year (23,922) (23,969) ---------- ---------- Net current assets 25,450 29,619 ---------- ---------- Total assets less current liabilities 35,607 35,302 Creditors - amounts falling due after more than one year (831) (944) Provisions for liabilities and charges (101) (1) ---------- ---------- Net assets 34,675 34,357 ====== ====== Capital and reserves Called up share capital 1,638 1,699 Share premium account 5,711 5,711 Capital redemption reserve 133 72 Profit and loss account 27,193 26,875 ---------- ---------- Equity shareholders' funds 34,675 34,357 ====== ====== Northamber Plc Preliminary Results for the year ended 30th June 2001 Consolidated Cash Flow Statement Notes Year Year ended ended 30 June 30 June 2001 2000 £'000 £'000 Cash inflow from continuing operating activities 4 12,847 522 --------- --------- Returns on investments and servicing of finance Interest received 80 144 Interest paid (428) (363) Income from fixed asset investments 196 200 --------- --------- Net cash outflow from returns on investments and servicing of finance (152) (19) --------- --------- Taxation UK corporation tax paid (2,639) (2,487) --------- --------- Capital expenditure and financial investment Purchase of tangible fixed assets (5,435) (557) Purchase of other investments (4) - Sale of tangible fixed assets 292 33 --------- --------- Net cash outflow from capital expenditure and financial investment (5,147) (524) --------- --------- Equity dividends paid (2,049) (1,870) --------- --------- Cash inflow/(outflow) before financing 2,860 (4,348) --------- --------- Financing Purchase of shares (1,440) (435) Issue of ordinary share capital - 5 Debt due beyond a year: Repayment of a secured loan (113) (109) --------- --------- Net cash outflow from financing (1,553) (539) Increase/ (decrease) in cash in the period 4 1,307 (4,887) ====== ===== NOTES 1. Accounting policies The Financial information set out above does not constitute the Group's statutory accounts for the years ended 30th June 2000 or 30th June 2001, but it is derived from those accounts. The Statutory Accounts for 30th June 2000 have been delivered to the Registrar of Companies and those for 2001 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. The information contained in this statement does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. 2. Dividend An interim dividend has been paid during the year of 2.2p per share. A final dividend of 4.0p will be paid on 9th January 2002 to those members on the register at close of business on 7th December 2001. The ex-dividend date for the shares will be 5th December 2001. 3. Earnings per ordinary share The calculation of earnings per ordinary share is based on the profit after taxation of £3,746,500 (2000: £5,151,400) and on 33,198,096 ordinary shares (2000: 34,131,038). The number of ordinary shares in issue during the years ended 30th June 2001 and 30th June 2000 were the weighted average in issue during each year. Computation of Earnings per share for 2001 Per Share Earnings Shares Net profit for year £3,746,500 Weighted average shares outstanding during year 33,198,096 Basic earnings per share 11.3p Dilutive effect of options 316,769 Diluted earnings per share 11.2p £3,746,500 33,514,865 4. Cash flow a) Reconciliation of operating profit to operating cash flows Group 2001 2000 £'000 £'000 Continuing operations Operating profit 5,777 7,752 Income from fixed assets investments (196) (200) Depreciation of tangible fixed assets 749 817 Profit on sale of tangible fixed assets (76) (22) (Increase)/decrease in stocks (3,682) 1,634 Decrease/(increase) in trade debtors 8,074 (7,062) Decrease/(increase) in other debtors 18 (22) Decrease/(increase) in prepayments and accrued income 177 (253) Increase/(decrease) in trade creditors 2,395 (2,891) (Decrease/increase in other taxation and social (168) 399 security (Decrease)/increase in accruals and deferred income (221) 400 --------- --------- Net cash inflow from continuing operating activities 12,847 552 ===== ===== b) Reconciliation of net cash flow to movement in net funds Increase/(decrease) in cash in the period 1,307 (4,887) Cash outflow from changes in debt 113 109 --------- --------- Change in net debt resulting from cash flows and the movement in net debt in the period 1,420 (4,778) Net (debt)/funds brought forward (848) 3,930 --------- --------- Net funds/(debt) carried forward 572 (848) ===== ===== c) Analysis of net debt At 30th June 2001 At 1st July 2000 Cash Flow £'000 £'000 £'000 Cash at bank and in hand 1,032 371 1,403 Overdrafts (936) 936 - -------- -------- -------- 96 1,307 1,403 Debt due after more than one year (944) 113 (831) -------- -------- -------- Total (848) 1,420 572 ===== ===== ===== 5. These preliminary results were approved by the Board of Directors on September 24th 2001. A copy of these preliminary results 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. The Company will hold its Annual General Meeting on Friday 23 November 2001.

Companies

Northamber (NAR)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today