14th Nov 2019 13:23
(Alliance News) - IT equipment distributor Northamber PLC said Thursday the underlying business remains strong despite a "disappointing" set of annual results.
Revenue for the financial year to June slipped 13% to GBP50.3 million, with the pretax loss widening slightly to GBP598,000 from GBP489,000 the year before.
Chessington, Surrey-based Northamber said the results "appear disappointing", but it noted a decision was made to exit lower-margin operations, reducing revenue. Northamber also is in a legal dispute with a supplier, which is incurring costs.
The company's gross margin, it said, increased to 8.6% from 7.8% year-on-year.
"I believe these figures show the strengthening trading business we are building, with a considerable improvement and confirms our policy of expanding profitable product ranges," said acting Chair Geoff Walters.
Northamber has increased the dividend for the year to 0.3 pence per share from 0.1p a year prior.
Looking ahead, the focus will remain on improving margins, though Northamber noted external headwinds continue to materialise.
"The future of the company, with the resources available to it, looks more promising despite the wider economic and political backdrop, and I look forward to updating you on progress in due course," said Walters.
Shares were 0.9% higher on Thursday afternoon in London at 45.40p each.
By George Collard; [email protected]
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