RNS Number : 0123W
11 November 2010
11 November 2010
("Northamber" or the "Company")
Interim Management Statement
After the challenging trading conditions of very recent years, it is pleasant to be able to report positive progress and support my cautiously optimistic statement in the recent annual report.
Together with the added benefit of some newer areas of activity, turnover in the first fiscal quarter showed improvement over the first quarter of last year and also the last quarter of the year to 30 June 2010.
Although the additional sales were achieved on lower gross margins, the sales do contribute to a further dilution of our transactional overheads. The net result was increased pre-tax profitability but at a slightly lower overall gross margin.
The reductions made to the cost base last year, together with our continued vigilance in controlling operating costs is reflected in a further reduction in operating costs, compared with the same period last year.
The combined effect of greater turnover and our reduced operating cost base was an operating profit compared with the operating loss reported in the comparative period last year.
Total Net Assets per share at the 30 September 2010 increased to 89.1p compared with 88.5p at the year end. The Company has no structured debt and had cash in hand of £11.6 million at 30 September 2010 compared with £9.1 million at 30 September 2009, which represented approximately 40p per share.
We therefore continued to meet one of our core objectives which is to have a substantial, sound and liquid funding position, which not only gives us security but a strong negotiating position with both our customers and our suppliers.
Whilst seemingly always to be sounding a note of caution with regards to the future, the fluidity of the economy, the unknown effects of the "cuts" which have yet to manifest themselves and the scheduled change to the rate of VAT, are all significant.
In such conditions it is impossible to be anything other than cautious, which is another reason why we will continue to place importance in the strength of our balance sheet and the control of our working capital as well as optimising our net revenues.
For further information, contact:
Northamber Plc 020 8296 7000
Charles Stanley Securities 020 7149 6000
Russell Cook/Carl Holmes
This information is provided by RNS
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