Interim Results

Northamber PLC
16 February 2005


NORTHAMBER PLC
16 FEBRUARY 2005


                                 Northamber PLC

                     Interim Report & Accounts (Unaudited)

                     For Six Months Ended 31 December 2004


Chairman's Statement


Results


The Board is pleased to announce a 106% increase in pre-tax profits for the
first half of £1.36 million (2003: £659,000) on sales that are 8.3% ahead at
£124.5 million, and this reflects the change in emphasis over recent years
towards core operations.


The first half performance is even more encouraging considering the unabated
price erosion on many of our volume product ranges during the period.  These
results also reflect the necessary ongoing focus on overheads, with a further
5.6% reduction compared with the 10% reduction we reported a year ago.


Over the period, we continued to maintain primary positions within the UK
distribution models of our key suppliers, against a background of the ongoing
and overly competitive nature of this sector.  Whilst we are now tasked with
achieving more commercially viable returns on some of our activities, on a
positive note it helps support our view that we are strengthening Northamber's
market share within its chosen sectors.  Tangible returns commensurate with the
necessary activities and associated costs within major brand activities,
continues to prove challenging however.


Earnings per share for the year benefited with an increase to 2.82p from the
1.43p reported last year, whilst net assets per share rose to 100.6p from 100p.


At the end of 2004, the cash balance was £4.1 million (2003: £5.2 million) ;
stemming from the increase in debtors and stock levels; the Group continues to
remain debt free.


The Balance Sheet


During the period we purchased and cancelled 92,900 ordinary shares at a cost of
£83,532.  Our balance sheet remains very strong with no debt and £4.1m of cash
at 31 December 2004.  Despite a small decrease in total net assets but with
fewer shares outstanding, net asset value per share increased to 100.6p.  The
daily focus on the key business ratios remains at the forefront of our
management controls.


Dividend


I have previously drawn attention to dividend policy reflecting both trading
results and an ongoing healthy balance sheet. With these results, your Board
feels it appropriate to increase the interim dividend to 2p from the 1.1p paid
last year


The interim dividend will be payable on 6 May 2005 to members on the Register as
at 15 April 2005.


The Board


As announced on 28 January 2005, Mike Ayrton, having retired to Spain, decided
to also resign his role as a non-executive director of Northamber.  We wish to
extend our very best wishes and most especially thank him for his valued
contribution.


OUTLOOK


Whilst January proved weak across the entire sector including ourselves, happily
February appears to be returning to expected levels of activity.


Subject to the economy as a whole, your Board remains confident in the outcome
for the full year.


D.M. Phillips

Chairman

16 February 2005



CONSOLIDATED UNAUDITED PROFIT AND LOSS ACCOUNT
For the six months ended 31 December 2004

                                              6 months              6 months             12 months
                                                 ended                 ended                 ended
                                           31 December           31 December               30 June
                                                  2004                  2003                  2004
                                           (Unaudited)           (Unaudited)             (Audited)
                                                 £'000                 £'000                 £'000

Turnover                                       124,504               114,920               232,809
Cost of sales                                (114,776)             (105,417)             (213,862)
                                   -------------------   -------------------   -------------------
Gross profit                                     9,728                 9,503                18,947

Net operating expenses                         (8,425)               (8,943)              (17,339)
                                   -------------------   -------------------   -------------------
Operating profit                                 1,303                   560                 1,608

Interest receivable                                 57                   100                   209
Interest payable                                   (1)                   (1)                   (5)
                                   -------------------   -------------------   -------------------
Profit on ordinary
activities before taxation                       1,359                   659                 1,812

Taxation charge                                  (476)                 (198)                 (647)
                                   -------------------   -------------------   -------------------
Profit on ordinary
activities after taxation                          883                   461                 1,165

Equity dividends                                 (624)                 (344)               (1,261)
                                   -------------------   -------------------   -------------------
Retained profit/(loss)
for period                                         259                   117                  (96)
                                           ===========           ===========           ===========

Earnings per ordinary share                      2.82p                 1.43p                 3.67p
                                   -------------------   -------------------   -------------------


All operations are continuing


There is no difference between the profit on ordinary activities before taxation
and the retained profit/(loss) for the period stated above, and the historical
cost equivalents.



CONSOLIDATED UNAUDITED INTERIM BALANCE SHEET
At 31 December 2004


                                               At 31 December         At 31 December             At 30 June
                                                         2004                   2003                   2004
                                                  (Unaudited)            (Unaudited)              (Audited)
                                                        £'000                  £'000                  £'000

Fixed assets
Tangible assets                                         4,213                  5,239                  4,541
Investments                                             2,487                  2,836                  2,837
                                         --------------------   --------------------   --------------------
                                                        6,700                  8,075                  7,378
                                         --------------------   --------------------   --------------------
Current assets
Stocks                                                 23,741                 21,390                 17,363
Debtors                                                33,354                 27,128                 26,887
Cash at bank and in hand                                4,113                  5,190                  9,150
                                         --------------------   --------------------   --------------------
                                                       61,208                 53,708                 53,400
Current liabilities
Creditors - amounts falling due                      (35,843)               (29,623)               (28,888)
within one year
                                         --------------------   --------------------   --------------------
Net current assets                                     25,365                 24,085                 24,512

                                         --------------------   --------------------   --------------------
Total assets less current liabilities                  32,065                 32,160                 31,890

Deferred Taxation                                       (783)                  (859)                  (783)

                                         --------------------   --------------------   --------------------
Net Assets                                             31,282                 31,301                 31,107
                                                  ===========            ===========            ===========

Capital and reserves
Called up share capital                                 1,561                  1,565                  1,566
Share premium account                                   5,734                  5,724                  5,734
Capital redemption reserve                                226                    220                    221
Profit and loss account                                23,761                 23,792                 23,586
                                         --------------------   --------------------   --------------------
Equity Shareholders' Funds                             31,282                 31,301                 31,107
                                                  ===========            ===========            ===========

Net assets per share                                   100.6p                 100.0p                  99.3p



CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 December 2004


                                                     6 months ended       6 months ended      12 months ended
                                                        31 December          31 December              30 June
                                                               2004                 2003                 2004
                                                        (Unaudited)          (Unaudited)            (Audited)
                                                              £'000                £'000                £'000

Cash (outflow)/inflow from continuing
operating activities                                        (4,994)              (1,171)                3,669
                                                            

Returns on investments and servicing of
finance
Interest received                                                59                  100                  209
Interest paid                                                   (1)                  (1)                  (5)
Income from fixed asset investments                              97                   99                  220
                                                 ------------------   ------------------   ------------------
Net cash inflow from returns on investments
and servicing of finance                                        155                  198                  424

Taxation
UK corporation tax paid                                       (395)                (202)                (529)

Capital expenditure and financial investment
Purchase of tangible fixed assets                              (89)                (169)                (314)
Sale of tangible fixed assets                                    10                   31                  365
Sale of other investments                                       360                    0                    0
                                                 ------------------   ------------------   ------------------
Net cash inflow/(outflow) from capital
expenditure and financial investment
                                                                281                (138)                   51

Equity dividends paid                                             0                    0                (970)

                                                 ------------------   ------------------   ------------------
Cash (outflow)/inflow before financing                      (4,953)              (1,313)                2,645
                                                 ------------------   ------------------   ------------------

Financing
Purchase of shares                                             (84)                (662)                (672)
issue of shares                                                                                            12
                                                 ------------------   ------------------   ------------------
Net cash outflow from financing                                (84)                (662)                (660)

                                                 ------------------   ------------------   ------------------
Decrease in cash in the period                              (5,037)              (1,975)                1,985
                                                 ------------------   ------------------   ------------------



NOTES



1. The Directors have declared an interim net dividend of 2.0p per
   ordinary share (2003 - 1.1p) which will be paid on 6 May 2005 to shareholders 
   on the register on 15 April 2005. The ex-dividend date for the shares will be 
   13 April 2005.


2. The tax charge for the six months ended 31 December 2004 has been based
   on the expected tax rate for the year of 35%.


3. The calculation of earnings per share is based on profits of £883,000
   (2003 -£461,000) on the weighted average number of 31,293,626 (2003 -
   32,243,565) ordinary shares in issue.


4. The calculation of net assets per ordinary share is based on 31,223,100
   (2003 - 31,299,000) ordinary shares being the number of shares in issue at 
   the end of the period.


5. The interim financial statements for the six months ended 31 December
   2004 are unaudited.  They have been prepared on the basis of accounting 
   policies consistent with those adopted for the year ended 30 June 2004.  The 
   results for the year ended 30 June 2004 have been summarised for comparative 
   purposes within the meaning of Section 240 of the Companies Act.


   The full financial statements for the year ended 30 June 2004 were reported 
   on by the auditors without qualifications or statements under Section 237(2) 
   or (3) of the Companies Act 1985 and have been delivered to the Registrar of 
   Companies.


6. 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.


7. These interim results were approved by the Board of Directors on 16
   February 2005.


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