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 £97
million for the 6 months to end December 2007 against the £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 £0.45
million compared with the £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 £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 £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 £30.1million or 102.4p per share and after
the repurchase of 1,075,000 shares at a cost of £702,000, compared with net
assets of £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: [phone]



Charles Stanley Securities
Philip Davies                           Tel: [phone]



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
                                                                 £'000              £'000            £'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
                                                            £'000            £'000            £'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
                                                                  £'000             £'000            £'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
                                                                £'000            £'000            £'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
                                                                 £'000             £'000            £'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 £23,652
as salary and £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.


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