Interim Results

Northamber PLC
28 February 2007

                         Northamber PLC ('the Company')

                     Interim Report & Accounts (Unaudited)

                     For Six Months Ended 31 December 2006





Chairman's Statement



Results



The previously reported disappointing sector trading conditions continued to
constrain opportunities and with unabated price deflation in many key product
areas, provided little scope for improvement in revenue.



This resulted in pre-tax profits of £0.37 million (2005 first half -
£0.32million) but reduced revenues of £95.27million (2005 first half- £116.03
million).  Our stringent cost controls meant that despite the reduction in
revenues, the impact on gross profit, down to £6.75 million (2005 first half
£7.79 million) was partially offset by a reduction in the cost of sales.  Profit
before tax increased from £0.32 million to £0.37 million for this half year
largely due to the increase in investment income. As a result earnings per share
increased from last year's 0.63p to 0.78p.



During the period we continued to maintain trading and stock profiles which
reflected the commercial realities and avoided excessive or unrewarding risks.



Working capital management continued to be key. With comparative net operating
expenses reducing by £1 million. Debtor days and Creditor days were in line with
those for the first half of 2005/6 but there was a slight decline in the ratio
of stock turns.



With the challenging trading environment once again the performance of our
management team is appreciated.





The Balance Sheet



The results of our negotiations to sell the 'Lesser Interest' in our enterprise
zone investment property in Arbroath for £2.43 million and as referred to in my
last statement, were concluded and the cash was received in  October 2006.



One result of falling prices and with that debtor finance needs, has been to
firm the availability of surplus cash.  When including the further influx from
the investment property proceeds, your board is reviewing the possibility of
returning a prudent portion of surplus cash to shareholders.



After dividend, there was a small decrease in the total net asset value at
period end to £30.0 million or 98.5p per share (2005: 99.5p).





Dividend



The balance sheet continues to be exceptionally sound, with a very strong cash
position.



With these results your Board feels it appropriate to pay an interim dividend of
1.2p (2005 - 1.1p). This interim dividend will be payable 11th May 2007 to
members on the Register as at 20th April 2007.







Outlook



The Board is necessarily cautious for the outcome of the current trading year.
The slower than expected uptake for Microsoft's newly launched Vista and the
unrewarding state of the market in which we operate is not encouraging.  We
continue with careful cost controls and an experienced management team. The
Company is well positioned to take advantage of any improved trading
opportunities within the sector.






D.M. Phillips

Chairman

28 February 2007








Northamber plc



Consolidated Income Statement 6 Months to 31-12-06




                                                      6 months ended     6 months ended      Year ended
                                                      31.12.06 £'000    31.12.05  £'000  30.06.06 £'000                
Revenue                                                       95,272            116,032         204,408

Cost of sales                                                 88,523            108,242         189,912
Gross Profit                                                   6,749              7,790          14,496

Net operating expenses                                         6,656              7,675          14,369
Profit from operations                                            93                115             127

Investment revenue                                               312                202             337

Finance costs                                                    (36)                (1)            (30)
Profit before tax                                                369                316             434

Tax                                          3                   129                121             203
Profit for the period from continuing
operations                                                       240                195             231

Earnings per ordinary share                                    0.78p              0.63p           0.75p
Diluted earnings per share                                     0.78p              0.63p           0.75p



Reconciliation of Movements in Shareholders' Funds


                                                      6 months ended     6 months ended      Year ended
                                                      31.12.06 £'000    31.12.05  £'000  30.06.06 £'000   
Capital items
    Dividends                                                   (305)            (1,241)        (1,576)
    Purchase of own shares                                         -               ( 46)          (421)
                                                                (305)            (1,287)        (1,997)
 Total recognised income and
 expense for the period                                          240                195            231

Movement in shareholders' funds for the period                   (65)            (1,092)        (1,766)

Opening equity shareholders' funds                            30,078             31,914         31,844
Closing equity shareholders' funds                            30,013             30,822         30,078



Consolidated statement of recognised income and expense


Total income recognised directly in equity
Profit for the period                                            240                195            231
Attributable to equity shareholders                              240                195            231



Northamber plc

Consolidated balance sheet at 31-12-06


                                             Notes     As at 31.12.06    As at 31.12.05    As at 30.06.06
                                                           £'000               £'000            £'000
Non current assets
Property, plant and equipment                 4            3,707               4,074            3,911
Investment property                                           -                2,483                -
                                                           3,707               6,557            3,911
Current assets
Trading investments                                           -                    1               1
Inventories                                               17,064              18,690            9,052
Trade and other receivables                               30,393              37,791           27,644
Cash and cash equivalents                                  9,024               3,987            9,821
                                                          56,481              60,469           46,518
Assets held for sale                                           -                   -            2,483

Total assets                                              60,188              67,026           52,912

Current liabilities
Trade and other payables                                  29,286              34,094           20,426
Bank overdraft                                                 -                   -            1,522
Current taxation                                             129                 122              126
Provisions                                                     -               1,228                -
                                                          29,415              35,444           22,074
Non current liabilities                                  
Deferred tax liabilities                                     760                 760              760
Total liabilities                                         30,175              36,204           22,834
Net assets                                                30,013              30,822           30,078

Equity
Share capital                                              1,523               1,548            1,523
Share premium account                                      5,734               5,734            5,734
Capital redemption reserve fund                              264                 239              264
Retained earnings                                         22,492              23,301           22,557
Equity shareholder's funds                                30,013              30,822           30,078





Northamber plc

Consolidated cash flow statement 6 Months to 31-12-06


                                                      6 months to      6 months to     Year to 30.06.06
                                                         31.12.06         31.12.05
                                                            £'000            £'000          £'000
Operating activities
Operating profit from continuing operations                    93              115            127
Depreciation of property, plant and equipment
(Profit)/loss on disposal of property, plant and              231              308            564
equipment                                                                                                               
                                                               72                -             (7)
Operating profit before changes in working capital            396              423            684
(Increase)/decrease in inventories
(Increase)/decrease in trade and other receivables         (8,012)          (4,800)          4,838
(Decrease)/increase in trade and other payables            (2,749)          (6,570)          3,576
                                                            8,555            5,615          (8,109)
Cash generated from operations                             (1,810)          (5,332)            989

Interest paid                                                 (36)              (1)            (30)

Income taxes paid                                            (126)            (407)           (485)
Net cash from operating activities                         (1,972)          (5,740)            474
Cash flows from investing activities

Interest received                                              251              87             139

Proceeds from disposal of property, plant and
equipment                                                       26               1              17
Proceeds from disposal of investment property

Purchase of property, plant and equipment                    2,434               -               -
Income from investments                                        (75)           (164)           (266)
                                                                61             114             198
Net cash from investing activities                           2,697              38              88
Cash flows from financing activities

Purchase of own shares for cancellation                         -              (46)           (421)

Dividends paid to equity shareholders                           -                -          (1,576)
Net cash used in financing activities                           -              (46)         (1,997)
Net (decrease)/increase in cash and cash equivalents          725           (5,748)         (1,435)

Cash and cash equivalents at beginning of  period           8,299            9,735           9,734

Cash and cash equivalents at end of period                  9,024            3,987           8,299

Cash and cash equivalents for the purpose of this
statement comprise
Cash and cash equivalents                                   9,024            3,987           9,821
Bank overdrafts                                                                 -           (1,522)
                                                            9,024            3,987           8,299


Northamber plc



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 2007.



3.       Tax charge



The interim period tax charge is accrued on the estimated average annual
effective tax rate of   35% (6 months ended 31 December 2005 - 38%).



4.       Property, plant and equipment


                                                      6 months to        6 months to     Year to 30.06.06
                                                        31.12.06           31.12.05
                                                                                              £'000
                                                          £'000              £'000
At beginning of period                                    3,911              4,219            4,219
Additions                                                    75                164              266
Disposals                                                   (48)                (1)             (10)
Depreciation                                               (231)              (308)            (564)
At end of period                                          3,707              4,074            3,911







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.   Earnings per Share



The calculation of earnings per share is based on profits of £240,000 (2005 -
£195,000) on the weighted average number of 30,458,100 (2005 -30,516,719)
ordinary shares in issue.



7.   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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