TIDMNAR
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 GBP57.3 million versus GBP61.8
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 GBP4.8 million to
GBP4.4 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
GBP234,000 improvement in the pre tax loss to GBP999,000 compared
with GBP1,233,000 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 GBP20 million including GBP2 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 GBP4.97 million compared with GBP5.47 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 GBP0.1 per share, at a total cost of GBP28,159
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
GBP'000 GBP'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
GBP'000 GBP'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 Share Capital Retained Total
Capital Premium Redemption Earnings Equity
Account Reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'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
GBP'000 GBP'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, (4) -
plant and equipment
----------- -----------
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 4 -
of property, plant and
equipment
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
GBP'000 GBP'000 GBP'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 GBP7.4m (2016:GBP8.6m).
3. Loss per ordinary share
The calculation of the basic and diluted earnings per share is
based on the following data:
2017 2016
GBP'000 GBP'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
(END) Dow Jones Newswires
November 03, 2017 03:00 ET (07:00 GMT)
Northamber (LSE:NAR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Northamber (LSE:NAR)
Historical Stock Chart
From Apr 2023 to Apr 2024