Final Results

Northamber PLC 18 September 2003 Northamber plc Audited Results for the year ended 30th June 2003 CHAIRMAN'S STATEMENT Results The Board is pleased to report a very strong second half performance by the Group which has resulted in a creditable full year outcome of pre-tax profits of £422,000 (£456,000, including an exceptional profit of £321,000: 30 June 2002). Shareholders will recall that at the interim stage the Group reported a disappointing pre-tax loss of £260,000. Ongoing price erosion reduced sales revenues to £240 million (£250 million: 30 June 2002) negating the growth in our own average unit sales and we believe that we have again increased market share. Overly competitive price and resultant margin pressures continue to prevail and reflect the basic problems within the I.T. hardware sector. Obscured within the result is our continued avoidance of loss making sales of mere revenue products. This contributed to a modest 0.16% point increase in gross margin and whilst sales fell by some 4%, the Board's close attention to costs has reduced total overheads by 5.2%. On a positive note, earnings per share increased to 0.94p from the 0.91p of a year ago. At the year end we had a significant £7.165 million cash balance and remain debt free. Subject to confirmation by shareholders at the AGM, this will enable the Board to recommend a final cash dividend of 2.0p (net), making a total of 3.0p for the full year, (compared with 4.2p last year). After dividend payments and £174,000 spent on the re-purchase of the Company's ordinary shares for cancellation, net assets per share were 98.3p against the 100.7p reported a year ago. Trading Sales of distributed PC's were reported as having fallen over the first half of 2003. Also, the volume market place and inherent lack of commercial profitability over the past year required a review of the Group's operations at the end of 2002 and with it, a strategic change in general direction. With sales of volume PC's and most accessories continuing to lack adequate commercial returns, it is essential that we evolve our business model to become more commercially viable. That entails re-enforcing our focus on key relationships, whilst shifting emphasis and investment further up both the technology and value chains. This change was commenced late last year and, albeit slowly, is progressing to plan. Our existing higher value activities have continued to perform in-line with market conditions. Disappointingly, the malaise of the volume markets has also been somewhat reflected in this area. The Balance Sheet Continued strong cash management during the period enabled the Group to end the year with a very strong £7.17 million (£8.59 million: 30 June 2002) net cash position at year end, which was again coupled with zero debt. Net assets of £31.86 million are after the annual depreciation charge of £1.05 million, dividend payments of £977,000 and £174,000 spent on the re-purchase of 326,400 ordinary shares for cancellation. Stock levels reduced to £13.21 million from £14.59 million and stock turns also benefited with an increase from 16 to 17 times. The Board After very many years association with the Group, Graham Cole advised that his other commitments strained his ability to properly carry out his role as a non-executive director. We shall miss his input and wish his new venture every success. Dividend Reviewing dividend policy against the current background is difficult. With our strong cash generation and net cash position, pending a return to realistic levels of trading, it is proposed that the final dividend be maintained at 2.0p (net). This would be at a cost to our reserves of £648,000. If approved, the proposed dividend will be payable on 9th January 2004 to members on the Register as at 19th December 2003. Outlook Within any new constraints that might arise within the sector or economy, we have reasonable expectations and your Board is confident of the outcome for the year. D.M. Phillips Chairman 18th September 2003 CONSOLIDATED PROFIT AND LOSS ACCOUNT Notes 2003 2002 £'000 £'000 Turnover 240,481 250,410 Cost of sales (221,563) (231,093) -------------- -------------- Gross profit 18,918 19,317 Distribution costs (11,073) (11,150) Administrative expenses (7,660) (8,610) Other operating income 220 472 -------------- -------------- Operating profit 405 29 Exceptional profit on sale of fixed assets in continuing operations - 321 -------------- -------------- Profit on ordinary activities before interest 405 350 Interest receivable 103 142 Interest payable (86) (36) -------------- -------------- Profit on ordinary activities before taxation 422 456 Tax on profit on ordinary activities (116) (160) -------------- -------------- Profit on ordinary activities after taxation 306 296 Equity dividends 3 (977) (1,353) -------------- -------------- Retained loss for year (671) (1,057) -------------- -------------- Earnings per ordinary share 2 0.94p 0.91p Diluted earnings per share 2 0.94p 0.90p CONSOLIDATED BALANCE SHEET 2003 2002 £'000 £'000 Fixed assets Tangible assets 5,575 6,289 Investments 2,837 2,837 -------------- -------------- 8,412 9,126 -------------- -------------- Current assets Stocks 13,214 14,590 Debtors - amounts falling due within one year 27,249 27,023 Cash at bank and in hand 7,165 8,587 -------------- -------------- 47,628 50,200 Current liabilities Creditors - amounts falling due within one year (23,324) (25,743) -------------- -------------- Net current assets 24,304 24,457 -------------- -------------- Total assets less current liabilities 32,716 33,583 Provisions for liabilities and charges (859) (882) -------------- -------------- Net assets 31,857 32,701 ======= ======= Capital and reserves Called up share capital 1,620 1,623 Share premium account 5,724 5,711 Capital redemption reserve 165 148 Profit and loss account 24,348 25,219 -------------- -------------- Equity shareholders' funds 31,857 32,701 ======= ======= CONSOLIDATED CASH FLOW STATEMENT Notes 2003 2002 £'000 £'000 Cash (outflow)/inflow from continuing operating activities 4 (365) 10,525 ------------- ------------- Returns on investments and servicing of finance Interest received 103 142 Interest paid (86) (36) Income from fixed asset investments 219 255 ------------- ------------- Net cash inflow from returns on investments and servicing of finance 236 361 ------------- ------------- Taxation UK corporation tax received/(paid) 179 (913) ------------- ------------- Capital expenditure and financial investment Purchase of tangible fixed assets (408) (1,090) Sale of tangible fixed assets 62 1,361 ------------- ------------- Net cash (outflow)/inflow from capital expenditure and financial (346) 271 investment ------------- ------------- Equity dividends paid (978) (2,015) ------------- ------------- Cash (outflow)/inflow before financing (1,274) 8,229 ------------- ------------- Financing Purchase of shares (174) (214) Issue of ordinary share capital 26 - Debt due beyond a year: Repayment of secured loan - (831) ------------- ------------- Net cash outflow from financing (148) (1,045) ------------- ------------- (Decrease)/increase in cash in period 4 (1,422) 7,184 ======= ======= NOTES 1. Accounting policies The Financial information set out above does not constitute the Group's statutory accounts for the years ended 30th June 2002 or 30th June 2003, but it is derived from those accounts. The Statutory Accounts for 30th June 2002 have been delivered to the Registrar of Companies and those for 2003 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. Earnings per ordinary share The calculation of earnings per ordinary share is based on the profit after taxation of £306,000 (2002: £296,000) and on 32,511,604 ordinary shares (2002: 32,524,260). The number of ordinary shares in issue during the years ended 30th June 2003 and 30th June 2002 were the weighted average in issue during each year. Computation of Earnings per share for 2003 Per share Earnings Shares Net profit for year £306,000 Weighted average shares outstanding during year 32,511,604 Basic earnings per share 0.94p Diluted effect of options 14,282 Diluted earnings per share 0.94p £306,000 32,525,886 3. Dividend An interim dividend has been paid during the year of 1.0p per share. A final dividend of 2.0p will be paid on 9th January 2004 to those members on the register at close of business on 19th December 2003. The ex-dividend date for the shares will be 17th December 2003. 4. Cash flow a) Reconciliation of operating profit to operating cash flows 2003 2002 £'000 £'000 Continuing operations Operating profit 405 29 Income from fixed assets investments (219) (255) Depreciation of tangible fixed assets 1,054 1,054 Loss on sale of tangible fixed assets 7 27 Decrease in stocks 1,376 354 (Increase)/decrease in trade debtors (338) 6,119 Decrease/(increase) in other debtors 8 (1) Decrease/(increase) in prepayments and accrued income 78 (116) (Decrease)/increase in trade creditors (2,467) 3,467 Decrease in other taxation and social security (7) (205) (Decrease)/increase in accruals and deferred income (403) 54 Increase/(decrease) in other creditors 141 (2) ------------ ------------ Net cash (outflow)/inflow from continuing operating activities (365) 10,525 ------------ ------------ b) Reconciliation of net cash flow to movement in net funds (Decrease)/increase in cash in the period (1,422) 7,184 Cash outflow from changes in debt - 831 ------------ ------------ Change in net funds resulting from cash flows and the movement (1,422) 8,015 in net debt in the period Net funds brought forward 8,587 572 ------------ ------------ Net funds carried forward 7,165 8,587 ====== ====== c) Analysis of net debt At 1st July 2002 Cash Flow At 30th June 2003 £'000 £'000 £'000 Cash at bank and in hand 8,587 (1,422) 7,165 ----------- ----------- ----------- Total number of shares in issue 32,399,000 Weighted average number of shares 32,511,604 Date of AGM 14 November 2003 Ex Dividend Date 17 December 2003 Dividend Date 9 January 2004 The Company's registered office 1-3 Union Street, Kingston-upon-Thames, Surrey KT1 1RP. END This information is provided by RNS The company news service from the London Stock Exchange

Companies

Northamber (NAR)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today