21st Nov 2024 18:02
(Alliance News) - Northamber PLC on Thursday said its loss widened in its financial year 2024, due to a "challenging" market.
The London-based distributor of audio-visual and information technology equipment said pretax loss widened to GBP1.3 million during the year ended June 30, from GBP411,000 the year before.
Revenue fell 17% to GBP56.0 million from GBP67.1 million, while cost of sales reduced by 18% to GBP48.0 million from GBP58.2 million.
It swung to an adjusted loss before interest, tax, depreciation and amortisation of GBP396,000, compared to earnings of GBP3,000 a year ago.
Northamber proposed a final dividend of 0.3 pence, unchanged from last year.
The group has embarked on a "significant cost reduction exercise", and is targeting annualised savings of GBP750,000 to come into effect from January 2025.
Northamber said: "We expect to see the benefit of [its cost reduction measures] in the current financial year, albeit more so in the second half. As it stands, despite a soft market impacting the first quarter more than anticipated, the group is trading at an Ebitda positive level in the year to date, and is hopeful of delivering an Ebitda profit for the first half. Cost savings and the benefit from some new initiatives will benefit the second half and beyond.
"Whilst we necessarily remain cautious short-term as the UK market continues to be challenging, we believe we are well-positioned to capture business as demand levels and business confidence hopefully return. Our wider geographic footprint and investment in strategic acquisitions should also serve to de-risk the group.
"Mid-term, we are optimistic that our focus and investments will allow us to drive growth of strategic business units and therefore unlock long-term value for shareholders."
Shares in Northamber closed 1.2% lower at 28.67 pence each in London on Thursday.
By Emily Parsons, Alliance News reporter
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