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

Half-year Report

Released 07:00 08-Mar-2019

RNS Number : 2357S
Northamber PLC
08 March 2019
 

Northamber PLC

("Northamber" or the "Company")

 

Interim Report for the Six months to 31 December 2018

 

Chairman's Statement

 

Results

 

Having reported a strong and encouraging performance for the full year to June 2018, it is disappointing to report that the commercial sector upon which our B2B offering is focussed has been negatively impacted by the widespread Brexit malaise hanging over us all.  Back in September 2018, I did highlight the difficulties of forecasting future performance but as ever we have worked hard to maximise our opportunities and exert influence over those factors we do have in our control.

 

In the first half we have seen revenues fall from £31.7 million to £24.2 million for the comparative period last year, although this has reflected our planned refocusing of our core business case and it is worth noting that revenues in the second half of the year ended 30 June 2018 were £26.5 million.  What I am pleased to report is that the trend of improvement in the Gross Profit margin has continued, increasing from 7.6% to 8.4% in the first half, alongside lower overheads including distribution costs.

 

Frustratingly, a supplier for a significant new product area breached our contract during the first half which results in lost sales and contribution.  We took swift legal action against this supplier, and a related party, which could result in a settlement in our favour.  The matter has yet to be concluded, but has so far resulted in an interim award judgement in our favour of £431,000 plus costs.  More importantly, we have secured replacement vendors and those results will start coming on stream during the second half of our financial year.

 

Partly as a result of the event reported immediately above, at the pre-tax level we made a loss of £353,000 compared with a £201,000 loss in the comparative period a year ago.  As stated, we nonetheless gained improvement in our gross margins, whilst continued proactive cost monitoring resulted in overhead economies in both Distribution and Administration compared with the comparative period last year, with a comparative saving of £113,000 for the period.

 

Financial position

 

Maintaining our prudence in financial matters, our working capital management is reflected in the Net Current Assets ratio which at 2.6 times (2018: 2.0 times) is a healthy improvement.

 

Free Cash was £2.9 million at 31 December 2018 compared with £2.2 million at 31 December 2017.  With Fixed Assets at book value at £7.8 million, including two unencumbered freehold properties whose value is, in the Board's strong view, in excess of book, the Company's overall financial position is sound.

 

Net Assets at 61.9p per share are considerably in excess of the average price of the ordinary shares throughout the period.

 

Board

 

I am very pleased to highlight that Colin Thompson has recently joined the board as a non-executive director and who will support my own role.  Colin originally joined the Company in 1982 and was a board director from September 1991 until January 1999.  He was instrumental in the design, construction and effective efficiencies of all our IT and logistics systems.

 

Dividend

 

As in previous years, your board has had regard to the strength of our debt free, tangible asset strong balance sheet and is proposing the interim dividend be 0.1p, at a total cost of only £27,357.  The dividend will be paid on 13th May 2019 to shareholders on the register as at 12th April 2019.

 

Staff

 

We continue to invest in our evolving business model with added skills based services and which are heavily reliant on our staff to achieve our business case evolution and I am very grateful to all of our staff for their continued support and flexibility.

 

Outlook

 

My comments in previous statements, especially those made in recent years, have tended to be cautionary, which by and large has been borne out in actual outcomes. 

 

As regards the current underlying trading position, the state of the economy at large, the extremely and damaging fluid Brexit scenario, and the associated effects on our own sector offers, offer no greater incentive for optimism now than they have in the past.  Our continued focus on the new higher margin value categories continues to be an area we are confident and excited about, and where we see our future opportunities.

 

 

D.M. Phillips

Chairman

 

8th March 2019

 

For more information please contact:

 

Northamber plc

020 8296 7000

David Phillips, Chairman 

 

 

Cantor Fitzgerald Europe (Nominated Adviser & Broker)

020 7894 7000

Phil Davies / Michael Boot

 

 

 

 

 

Consolidated Statement of Comprehensive Income

 

6 months to 31 December 2018

 

 

 

 

 

 

 

 

 

 

6 months

6 months

Year

 

 

 

Ended

Ended

Ended

 

 

 

31.12.18

31.12.17

30.06.18

 

 

 

£'000

£'000

£'000

 

 

 

Unaudited

Unaudited

Audited

 

 

 

 

 

 

 

Revenue

 

24,234

31,659

58,136

 

Cost of sales

 

(22,197)

(29,239)

(53,589)

 

Gross Profit

 

2,037

2,420

4,547

 

Distribution cost

 

(1,392)

(1,471)

(2,850)

 

Administrative expenses

 

(1,142)

(1,176)

(2,276)

 

(Loss) from operations

 

(497)

(227)

(579)

 

Investment revenue

 

144

26

90

 

(Loss) before tax

 

(353)

(201)

(489)

 

Tax credit/(charge)

 

-

-

-

 

Loss and total comprehensive income

 

 

 

 

 

for the period

 

(353)

(201)

(489)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted (loss) per ordinary share

 
 

 

 

(1.28)p

(0.71)p

(1.74)p

               

 

 

 

Consolidated Statement of Financial Position

 

 

As at 31 December 2018

 

 

 

 

 

 

 

As at

As at

As at

 

 

 

31.12.18

31.12.17

30.06.18

 

 

 

£'000

£'000

£'000

 

 

 

Unaudited

Unaudited

Audited

 

Non current assets

 

 

 

 

 

Property, plant and equipment

 

7,799

7,953

7,894

 

 

Current assets

 

 

 

 

 

Inventories

 

4,193

5,953

3,378

 

Trade and other receivables

 

7,662

12,005

8,145

 

Cash and cash equivalents

 

2,931

2,247

5,067

 

 

 

14,786

20,205

16,590

 

 

 

 

 

 

 

Total assets

 

22,585

28,158

24,484

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Trade and other payables

 

(5,643)

(10,294)

(6,964)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

(5,643)

(10,294)

(6,964)

 

 

 

 

 

 

 

Net assets

 

16,942

17,864

17,520

 

 

 

 

 

 

 

Equity

 

 

 

 

 

Share capital

 

273

281

281

 

Share premium account

 

5,734

5,734

5,734

 

Capital redemption reserve fund

 

1,513

1,505

1,505

 

Retained earnings

 

9,422

10,344

10,000

 

 

 

 

 

 

Equity shareholders' funds

 

16,942

17,864

17,520

             

 

 

 

Company Statement of Financial Position

 

 

As at 31 December 2018

 

 

 

 

 

 

 

As at

As at

As at

 

 

 

31.12.18

31.12.17

30.06.18

 

 

 

£'000

£'000

£'000

 

 

 

Unaudited

Unaudited

Audited

 

Non current assets

 

 

 

 

 

Property, plant and equipment

 

1,783

1,864

1,841

 

Investments

 

6,588

6,588

6,588

 

 

 

8,371

8,452

8,429

 

Current assets

 

 

 

 

 

Inventories

 

4,193

5,953

3,378

 

Trade and other receivables

 

7,665

12,005

8,145

 

Cash and cash equivalents

 

2,871

2,210

5,034

 

 

 

 

 

 

 

 

 

14,729

20,168

16,557

 

 

 

 

 

 

 

Total assets

 

23,100

28,620

24,986

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Trade and other payables

 

(9,442)

(13,515)

(10,486)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

(9,442)

(13,515)

(10,486)

 

 

 

 

 

 

 

Net assets

 

13,658

15,105

14,500

 

 

 

 

 

 

 

Equity

 

 

 

 

 

Share capital

 

273

281

281

 

Share premium account

 

5,734

5,734

5,734

 

Capital redemption reserve fund

 

1,513

1,505

1,505

 

Retained earnings

 

6,138

7,585

6,980

 

 

 

 

 

 

Equity shareholders' funds

 

13,658

15,105

14,500

 

 

 

 

 

 

 

 

 

Consolidated Statement of Changes in Equity

 

 

 

As at 31 December 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share capital

Share premium account

Capital redemption reserve

Retained earnings

Total Equity

 

 

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

Period to 31 December 2017

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

Balance at 1 July 2017

281

5,734

1,505

10,545

18,065

 

Dividends

-

-

-

-

-

 

Loss and total comprehensive

 

 

 

 

 

 

loss for the period

-

-

-

(201)

(201)

 

Balance at 31 December  2017

281

5,734

1,505

10,344

17,864

 

 

 

 

 

 

 

 

Period to 31 December 2018

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

Balance at 1 July 2018

281

5,734

1,505

10,000

17,520

 

Dividends

-

-

-

-

-

 

Purchase of own Shares for cancellation

       (8)

       -

8

(225)

   (225)

 

Loss and total comprehensive

       -

      -

                    -

  (353)

 (353)

 

loss for the period

 

 

 

 

 

 

Balance at 31 December  2018

273

5,734

1,513

9,422

16,942

 

 

 

 

 

 

 

 

Year to 30 June 2018

 

 

 

 

 

 

Audited

 

 

 

 

 

 

Balance at 1 July 2017

281

5,734

1,505

10,545

18,065

 

Dividends

-

-

-

(56)

(56)

 

Transactions with owners

-

-

-

(56)

(56)

 

Loss and total comprehensive

 

 

 

 

 

 

loss for the period

-

-

-

      (489)

  (489)

 

Balance at 30 June 2018

281

5,734

1,505

10,000

17,520

 

 

 

Company Statement of Changes in Equity

 

 

 

As at 31 December 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share capital

Share premium account

Capital redemption reserve

Retained earnings

Total Equity

 

 

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

Period to 31 December 2017

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

Balance at 1 July 2017

281

5,734

1,505

8,050

15,570

 

Dividends

-

-

-

-

-

 

Loss and total comprehensive

 

 

 

 

 

 

loss for the period

-

-

(465)

(465)

 

Balance at 31 December  2017

281

5,734

1,505

7,585

15,105

 

 

 

 

 

 

 

 

Period to 31 December 2018

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

Balance at 1 July 2018

281

5,734

1,505

6,980

14,500

 

Dividends

-

-

-

-

-

 

Purchase of own shares for cancellation

       (8)

     -

                  8

(225)

    (225)

 

Loss and total comprehensive

 

 

 

 

 

 

loss for the period

       -

     -  

                -      

(617)

(617)

 

Balance at 31 December  2018

273

5,734

1,513

6,138

13,658

 

 

 

 

 

 

 

 

Year to 30 June 2018

 

 

 

 

 

 

Audited

 

 

 

 

 

 

Balance at 1 July 2017

281

5,734

1,505

8,050

15,570

 

Dividends

-

-

-

(56)

(56)

 

Transactions with owners

-

-

-

(56)

(56)

 

Loss and total comprehensive

 

 

 

 

 

 

loss for the period

-

-

-

(1,014)

(1,014)

 

Balance at 30 June 2018

281

5,734

1,505

6,980

14,500

 

 

 

Consolidated Statement of Cash Flows

 

 

 

 

6 months to 31 December 2018

 

 

 

 

 

 

 

6 months

6 months

Year

 

 

 

 

Ended

ended

Ended

 

 

 

 

31.12.18

31.12.17

 

30.06.18

 

 

 

 

£'000

£'000

£'000

 

 

 

 

Unaudited

Unaudited

Audited

 

 

Cash from operating activities

 

 

 

 

 

 

Operating (loss) from

 

 

 

 

 

 

continuing operations

 

(497)

(227)

(579)

 

 

Depreciation of property, plant

 

 

 

 

 

 

and equipment

 

95

91

188

 

 

(Profit)/loss on disposal of property,

 

-

-

-

 

 

plant and equipment

 

 

 

 

 

 

Operating (loss) before changes in

 

 

 

 

 

 

working capital

 

(402)

(136)

(391)

 

 

 

 

 

 

 

 

 

(Increase)/decrease in inventories

 

(815)

(1,777)

798

 

 

(Increase)/decrease  in trade and

 

 

 

 

 

 

other receivables

 

483

(2,953)

907

 

 

Increase/(decrease)  in trade and

 

 

 

 

 

 

other payables

 

(1,321)

2,134

(1,196)

 

 

Cash (used)/generated from operations

 

(2,055)

(2,732)

118

 

 

 

 

 

 

 

 

 

Income taxes received/(paid)

 

-

-

-

 

 

Net cash from operating activities

 

(2,055)

(2,732)

118

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

Interest received

 

144

26

90

 

 

Proceeds from disposal of property,

 

 

 

 

 

 

plant and equipment

 

-

-

-

 

 

Purchase of property, plant and

 

 

 

 

 

 

Equipment

 

-

(19)

(57)

 

 

Net cash from investing activities

 

144

7

33

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

Purchase of own shares for cancellation 

 

(225)

-

-

 

 

Dividends paid to equity shareholders

 

-

-

(56)

 

 

Net cash used in financing activities

 

(225)

-

(56)

 

 

 

 

 

 

 

 

 

Net (decrease)/increase in cash and

 

 

 

 

 

 

cash equivalents

 

(2,136)

(2,725)

95

 

 

Cash and cash equivalents at

 

 

 

 

 

 

beginning of period

 

5,067

4,972

4,972

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

2,931

2,247

5,067

 

                     
 

 

Company Statement of Cash Flows

 

 

 

 

6 months to 31 December 2018

 

 

 

 

 

 

 

6 months

6 months

Year

 

 

 

Ended

Ended

Ended

 

 

 

31.12.18

31.12.17

30.06.18

 

 

 

£'000

£'000

£'000

 

 

 

Unaudited

Unaudited

Audited

 

Cash from operating activities

 

 

 

 

 

Operating (loss) from

 

 

 

 

 

continuing operations

 

(696)

(491)

(1,103)

 

Depreciation of property, plant

 

 

 

 

 

and equipment

 

58

55

115

 

(Profit)/loss on disposal of property,

 

 

 

 

 

plant and equipment

 

-

-

           -

 

Operating (loss) before changes in

 

 

 

 

 

working capital

 

(638)

(436)

(988)

 

 

 

 

 

 

 

(Increase)/decrease in inventories

 

(815)

(1,777)

798

 

(Increase)/decrease in trade and

 

 

 

 

 

other receivables

 

480

(2,953)

907

 

Increase/(decrease)  in trade and

 

 

 

 

 

other payables

 

(1,044)

2,435

       (594)

 

Cash (used)/generated from operations

 

(2,017)

(2,731)

123

 

 

 

 

 

 

 

Income taxes received/(paid)

 

-

-

-

 

Net cash from operating activities

 

(2,017)

(2,731)

          123            

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Interest received

 

79

26

            90

 

Proceeds from disposal of property,

 

 

 

 

 

plant and equipment

 

-

-

-

 

Purchase of property, plant and

 

 

 

 

 

Equipment

 

-

(19)

(57)

 

Net cash from investing activities

 

 

79

 

7

33

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Purchase of own shares for cancellation

 

(225)

-

-

 

Dividends paid to equity shareholders

 

-

-

(56)

 

Net cash used in financing activities

 

(225)

-

(56)

 

 

 

 

 

 

 

Net (decrease)/increase in cash and

 

 

 

 

 

cash equivalents

 

(2,163)

(2,724)

100

 

Cash and cash equivalents at

 

 

 

 

 

beginning of period

 

5,034

4,934

4,934

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

2,871

2,210

5,034

 

 

 

 

Notes to the financial statements

 

1.            Corporate Information

 

The financial information for the half year ended 31 December 2018 set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The group's statutory financial statements for the year ended 30 June 2018 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain statements under Sections 498(2) and 498(3) of the Companies Act 2006. The interim results are unaudited. Northamber Plc is a public limited company incorporated and domiciled in England and Wales. The company's shares are publicly traded on the London Stock Exchange's AIM market.

 

2.            Basis of preparation

 

These interim consolidated financial statements are for the six months ended 31 December 2018. They have been prepared in accordance with IAS34 Interim Financial Reporting. They do not include all the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the group for the year ended 30 June 2018.

 

These interim consolidated financial statements have been prepared under the historical cost convention.

 

These interim consolidated financial statements (the interim financial statements) have been prepared in accordance with accounting policies adopted in the last annual financial statements for the year to 30 June 2018 except for the adoption of IAS1 Presentation of Financial Statements (Revised 2007).

 

The adoption of IAS1 (Revised 2007) does not affect the financial position or profits of the group, but gives rise to additional disclosures. The measurement and recognition of the group's assets, liabilities, income and expenses is unchanged. A separate 'Statement of changes in equity' is now presented.

 

The accounting policies have been applied consistently throughout the group for the purposes of preparation of these interim consolidated financial statements.

 

3.            Basis of Consolidation

 

For the periods covered in these interim consolidated financial statements all trading has been carried out by the parent company alone. The group includes some non-trading dormant subsidiaries.  All the assets and liabilities of all subsidiaries have been included in the statements of financial position.

 

 

4.            Segmental Reporting

 

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 period. 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

6 months to December 2018

 

 

 

 

 

Total Segment revenue

23,967

 

267

 

     24,234

 

 

 

 

 

 

Year to 30 June 2018

 

 

 

 

 

Total Segment revenue

57,661

 

475

 

58,136

 

One customer accounted for more than 10% of the group's revenue for the period, being £3.6m.

 

5.            Taxation

 

No tax charge has been provided in the interim consolidated financial statements due to the losses accumulated both in prior years and in the current period.

 

6.            Earnings per Share

 

The calculation of earnings per share is based on the loss after tax for the six months to 31 December 2018 of £353,000 (2017: loss £201,000) and a weighted average of 27,639,779 (2017: 28,158,735) ordinary shares in issue.

 

7.            Property, Plant and Equipment

 

There were no significant additions to or disposals of property, plant or equipment in the period to 31 December 2018.  The reduction in the total value of property, plant and equipment was primarily due to the depreciation charge for the year.

 

8.            Risks and Uncertainties

 

The principal risks and uncertainties affecting the business activities of the group are detailed in the strategic report which can be found on pages 7 to 11 of the Annual Report and Accounts for the year ended 30 June 2018 (the Annual Report). A copy of the Annual Report is available on the company's web site at www.northamber.com.

 

The risks affecting the business remain the same as in the Annual Report. In summary these include:-

 

Market risk particularly those relating to the suppliers of products to the group

 

Financial risks including exchange rate risk, liquidity risk, interest rate risk and credit risk

 

In the opinion of the directors, these will remain the principal risks for the remainder of the year, however, the directors have reviewed the company's risk analysis and are of the opinion that steps have been taken to minimise the potential impact of such risks.

 

9.            Related Party Transactions

 

Mr D M Phillips is the ultimate controlling party of the Company.

 

During the six months period, the company paid £235,500 (2017: £300,500) rent to Anitass Limited, a wholly owned subsidiary. At 31 December 2018 Northamber plc owed Anitass Ltd £3,793,000 (2017:£3,259,000).

 

10.          Directors' Confirmation

 

The Directors confirm that to the best of their knowledge these condensed consolidated half year financial statements have been prepared in accordance with IAS 34 and that the interim management report herein includes a fair review of the information required by DTR 4.2.7R, an indication of important events during the first 6 months and descriptions of principal risks and uncertainties for the remaining six months of the year, and DTR 4.2.8R the disclosure of related party transactions and changes therein.

 

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
IR JRMRTMBJMBJL
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.

 


Half-year Report - RNS