Regulatory Story
Go to market news section View chart   Print
RNS
Northamber PLC  -  NAR   

Final Results

Released 07:00 03-Nov-2017

RNS Number : 4346V
Northamber PLC
03 November 2017
 

 

3 November 2017

 

Northamber PLC

("Northamber" or the "Company")

 

Preliminary Results for the year ended 30 June 2017

 

CHAIRMAN'S STATEMENT

 

Results

 

Despite advising positive and worthwhile progress at the time of the interim results in March and an improved second half, it is disappointing to advise overall results hampered by a slower transition than anticipated and a resultant slight 7.4% revenue loss for the year to 30 June 2017 of £57.3 million versus £61.8 million a year ago.

 

Overall margins slipped very slightly from 7.8% to 7.7% as we continue our focus on strategic rather than volume brands, resulting in the Gross Profit being reduced from £4.8 million to £4.4 million. This also reflects the slight reduction in total revenues with a fall in vendor rebates on those minimal margin volume products. More attention to overhead efficiencies on non-strategic, less profitable areas, delivered a further reduction in both distribution and administration costs, resulting in a £234,000 improvement in the pre tax loss to £999,000 compared with £1,233,000 for last year.

 

The loss on operations for the second half of the current year was some 32% lower than the comparative period last year. This combined with a 13% reduction for the first half year comparison resulted in a total reduction in the loss on operations being 19% lower for the year compared with the previous year.

 

At the December 2016 half year, I was once again cautious concerning our long standing product offerings and am since encouraged by the lower rate of decline in second half revenues compared with the first half; in the first half revenues fell some 10.8% against the prior year but by only 3.5% in the second half (again compared to the comparable period). 

 

We had also expected that with the newer product elements showing solid improvement gains, the profit vs revenue trend would have been more positive, however we were thwarted by some reversals particularly those affecting the retail IT sector, as noted below.

 

In my report last October, I mentioned three sections of the business, being Wholesale, Solutions and Retail. I am pleased to report that there were improvements in the year in both revenue and margins for the Solutions element.  This has a higher level of added value and thus better margins than the other divisions, plus it is an area where we are confident of the value in continued concentration.

 

Our volume Wholesale section of the business supported refined focus for Financial year 2017 compared with 2016.  However, as you will be aware the end-user Retail sector in computer related products has been hit by a number of factors which have affected the revenues and also vendor volume rebates as a whole and an impact on our overall business this year.

 

Financial Position

 

The Financial Position remains strong with unencumbered net assets unchanged at £20 million including £2 million of fair value over the book value of the property assets. Stock turns for the year have improved by 11% over the previous year, debtor and creditor days remain satisfactory and within the evolving business model and the liquidity ratios remain strong. Cash balances at 30 June 2017 were £4.97 million compared with £5.47 million at 30 June 2016.

 

Board

 

It is with deep gratitude and great regret that after many years, we will lose Reg Heath from the board at the AGM.  Reg's highly respected, very acutely succinct and wise input has always been of the utmost value and will be missed greatly.   We wish Reg and his family all the very best for his retirement. We are currently meeting with prospective candidates for a non-exec role and will provide further updates in due course.

 

Dividend

 

Based on the continuing strength of the group's debt free tangible asset base, the board is proposing to pay an unchanged final dividend of £0.1 per share, at a total cost of £28,159 which will be paid on 18 January 2018.

 

Staff

 

All businesses rely on the quality and dedication of their staff, particularly so when that business is primarily a people to people selling based organisation, as opposed to a manufacturing or on-line business. We are well served by all our staff and especially by the many long serving members thereof, and I am very grateful to them all.

 

Outlook

 

Further newer activities launched over recent months, have started to deliver more purposeful results, but what can one say about future prospects when volatile uncertainties now prevail in almost every aspect of all our lives.

 

Within the evolving business model, the Board can see opportunities to make a constructive difference in the short to medium term. We shall continue to strive to maximise those areas where we can achieve benefits and look after those areas where we already have advantages.

 

 

D.M.Phillips

Chairman

 

3 November 2017

 

 

For more information please contact:

 

Northamber plc

020 8296 7000

David Phillips, Chairman

 


Cantor Fitzgerald Europe (Nominated Adviser & Broker)

020 7894 7000

Phil Davies

 


 



 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 30 June 2017

 

 

 

 

    2017

 

    2016

 

    Total

 

    Total

 

    £'000

 

    £'000

 

 

 

 

Revenue

57,288

 

61,844

Cost of sales

(52,896)

 

(57,025)

 

 

 

 

Gross Profit

4,392

 

4,819

 

 

 

 

Distribution costs

(3,042)

 

(3,310)

Administrative costs

(2,401)

 

(2,801)

 

 

 

 

 

 

 

 

Loss from operations

(1,051)

 

(1,292)

 

 

 

 

Investment revenue

52

 

59

 

 

 

 

 

 

 

 

Loss before tax

(999)

 

(1,233)

 

 

 

 

Tax (charge)

-

 

-

 

 

 

 

 

 

 

 

Loss for the year and total comprehensive loss

(999)

 

(1,233)

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted loss per ordinary share

(3.55)p

 

(4.38)p

 

 

 

 

 

 



 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2017

 

 

    2017

 

    2016

 

    £'000

 

    £'000

 

 

 

 

Non current assets

 

 

 

Property, plant and equipment

8,025

 

7,995

 

 

 

 

 

 

 

 

Current assets

 

 

 

Inventories

4,176

 

5,006

Trade and other receivables

9,052

 

8,459

Cash and cash equivalents

4,972

 

5,466

 

 

 

 

 

18,200

 

18,931

 

 

 

 

Total assets

26,225

 

26,926

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

Trade and other payables

(8,160)

 

(7,805)

 

 

 

 

Total liabilities

(8,160)

 

(7,805)

 

 

 

 

Net assets

18,065

 

19,121

 

 

 

 

 

 

 

 

Equity

 

 

 

Share capital

281

 

281

Share premium account

5,734

 

5,734

Capital redemption reserve

1,505

 

1,505

Retained earnings

10,545

 

11,601

 

 

 

 

Equity shareholders' funds

18,065

 

19,121

 

 

 

 

 

 

 

 

 



 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

At 30 June 2017

 

 

Share Capital

 

Share Premium Account

Capital Redemption Reserve

Retained Earnings

 

Total Equity

 

£'000

 

£'000

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

Balance at 1 July 2015

281

 

5,734

 

1,505

 

12,946

 

20,466

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends

-

 

-

 

-

 

(113)

 

(113)

 

 

 

 

 

 

 

 

 

 

Transactions with owners

-

 

-

 

-

 

(113)

 

(113)

 

 

 

 

 

 

 

 

 

 

Loss and total comprehensive loss for the year

-

 

-

 

-

 

(1,233)

 

(1,233)

 

 

 

 

 

 

 

 

 

 

Balance at 30 June 2016

281

 

5,734

 

1,505

 

11,600

 

19,120

 

 

 

 

 

 

 

 

 

 

Dividends

-

 

-

 

-

 

(56)

 

(56)

 

 

 

 

 

 

 

 

 

 

Transactions with owners

-

 

-

 

-

 

(56)

 

(56)

 

 

 

 

 

 

 

 

 

 

Loss and total comprehensive loss for the year

-

 

-

 

-

 

(999)

 

(999)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 30 June 2017

281

 

5,734

 

1,505

 

10,545

 

18,065

 

 

 

 



 

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 30 June 2017

 

 

 

 

    2017

 

    2016

 

 

 

 

    £'000

 

    £'000

 

 

 

 

 

 

 

 

Cash from operating activities

 

 

 

 

 

Operating (loss) from continuing operations

 

(1,051)

 

(1,292)

 

Depreciation of property, plant and equipment

 

166

 

167 

 

(Profit) on disposal of property, plant and equipment

 

(4)

 

-

 

Operating (loss)/ profit before changes in working capital

 

(889)

 

(1,125)

 

 

 

 

 

 

 

 

Decrease/(increase) in inventories

 

 

830

 

(487)

 

(Increase) /decrease in trade and other receivables

 

 

(593)

 

1,716

 

Increase) in trade and other payables

 

 

355

 

7

 

 

 

 

 

 

 

 

Cash generated from operations

 

 

(297)

 

111

 

 

 

 

 

 

 

 

Income taxes paid

 

 

-

 

-

 

 

 

 

 

 

 

 

Net cash from operating activities

 

 

(297)

 

111

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

Interest received

 

 

52

 

59

 

Purchase of property, plant and equipment            

 

 

(197)

 

(32)

 

Proceeds from disposal of property, plant and equipment

 

 

4

 

-

 

Net cash from investing activities

 

 

(141)

 

27

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

Dividends paid to equity shareholders

 

 

(56)

 

(113)

 

 

 

 

 

 

 

 

Net cash used in financing activities

 

 

(56)

 

(113)

 

 

 

 


 

 

 

 

 

 

 

 

 

 

Net(decrease)/ increase in cash and cash equivalents

 

 

(494)

 

25

 

Cash and cash equivalents at beginning of year

 

 

5,466

 

5,441

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of year

 

 

4,972

 

5,466

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Notes

 

1. Financial information

 

The results of the year ended 30 June 2017 have been prepared using the accounting policies and methods of computation consistent with those used in the Group's annual report for the year ended 30 June 2017, and in accordance with the recognition and measurement requirements of the International Financial Reporting Standards as adopted by the European Union.

 

The financial information set out above does not constitute the group's statutory accounts for the years ended 30 June 2016 or 30 June 2017, but is derived from those accounts. The statutory accounts for the year ended 30 June 2016 have been delivered to the Registrar of Companies and those for 2017 will be delivered following the group's annual general meeting. The auditors have reported on these accounts, their reports were unmodified and unqualified and did not contain statements under s.498(2) or (3) of the Companies Act 2006. The information contained in this statement does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.

 

2. Segmental reporting

 

Management has determined that there is only one operating segment of the group as the total business of the company is the sourcing and distribution of computer related products and this is how information is reported to the Chief Operating Decision Maker. The board in carrying out its strategic planning and decision making has, necessarily, to take consideration of the inter relatedness of the product range and the customer base and thus treat the operations of the group as a whole. All decisions on the allocation of resources impacts on all aspects of the group. Information presented to the Chief Operating Decision Maker is the same as is reported in these financial statements.

 

Although the sales of the group are predominantly to the UK there are sales to other countries and the following schedule sets out the split of the sales for the year. Revenue is attributable to individual countries based on the location of the customer. There are no non current assets outside the UK.

 

        UK

        Other


        Total

        £'000

        £'000

        £'000

Year to 30 June 2016






Total Segment revenue

61,615


229


61,844







Year to 30 June 2017






Total Segment revenue

56,996


292


57,288



















One customer accounted for more than 10% (2016: 10%) of the group's revenue for the year, being £7.4m (2016:£8.6m).

 



 

3. Loss per ordinary share

 

The calculation of the basic and diluted earnings per share is based on the following data:

 




    2017


    2016




    £'000


    £'000






Loss for the year attributable to equity holders of the parent company


(999)


(1,233)

 

 




    2017


    2016

Number of shares



Number


Number






Weighted average number of ordinary shares for the

purpose of basic earnings per share and diluted earnings

per share


28,158,735


28,158,735              

 

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year. Both basic and diluted earnings per share have been calculated using the loss attributable to shareholders of the parent company as the numerator; therefore no adjustments to loss were necessary in 2016 and 2017.

 

Net Assets per share, as disclosed within the summary of the last five years of trading, is calculated by dividing the net assets as disclosed in the consolidated statement of financial position by the number of ordinary shares in issue at the year end.

 

4. Dividends

 

A final dividend of 0.1p per share will be paid on 18 January 2018 to those members on the register at close of business on 8 December 2017.

 

5. Notice of meeting

 

The annual report and accounts for the year ended 30 June 2017 will be posted to shareholders in due course and the Annual General Meeting will be held on 12 December 2017.

 

The Company's registered office is Namber House, 23 Davis Road, Chessington, Surrey KT9 1HS.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
FR ZMMGMDZVGNZM
Close


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


Final Results - RNS