24th Sep 2009 07:00
Northamber plc
Preliminary Results for the year ended 30 June 2009
Chairman's Statement
Results
Revenue for the year to 30th June 2009 reflected the severe recession in our core commercial-user marketplace together with some resultant price erosion. As predicted in my 3rd quarter statement, revenue continued to decline with £139.3 million for the year, some 22% less than the £179.7 million for the previous year. Such hazardous trading conditions did not assist sales when we necessarily sought lower stock and debtor exposures.
At the pre-tax level, profit of £47,000 represents a significant recovery over the £304,000 pre-tax interim loss reported last 19th February for the half year. (30th June 2008: £627,000).
Net Assets per Share at 89.4p only fell a marginal 0.7p from the 90.1p per share at June 2008. This result is after £465,000 of dividends and £114,000 spent re-purchasing shares for cancellation. The Net Asset Value of £25.95 million compared with the £26.48 million last year whilst Net Cash improved by £816,000 to £14.1 million against the £13.3million for the prior year.
Overheads were yet again the focus and lower than those for the previous year. Distribution Costs were reduced by £1.36 million (21.7%); Administration Costs were reduced by £745,000 (13.4%), a total reduction of £2.1 million. However, even such significant cost savings fell short of satisfying the reduction in Gross Profit. This resulted in an Operating Loss of £320,000 compared with the Operating Profit of £25,000 in the previous year.
Nonetheless, in the exceedingly difficult conditions, I have to consider this result creditable, and thank all members of the company for their efforts and contribution
Interest income for the period was inevitably significantly lower following the massive reduction in available interest rates. As detailed below, we generated positive cash flows during the year and at the year end had cash balances of £14.1 million compared with £13.3 million for the previous year.
The tax charge was reduced by adjustments affecting the deferred tax liabilities. The result was a post-tax profit for the year of £52,000 (EPS 0.18p) compared with £405,000 a year ago (EPS 1.36p).
Balance Sheet
A proven feature is our ability to manage working capital. This delivers demonstrably sound Critical Key Performance Indicators for the group such as Stock Turns, Debtor and Creditor days.
Whilst Debtor and Creditor days vary from year to year, over the last 3 years we have gradually increased the rate of stock turnover per annum. For the year just ended we achieved a stock turn of 18.1 times compared with 16.6 times for the previous year.
One crucial item is, as always, cash. We did achieve positive cash flow in the year after paying dividends of £465,000 and £114,000 repurchasing shares for cancellation. At year end our cash balances were £14.1 million compared with £13.3 million at the end of June 2008.
Staff
Trading conditions necessitated average staff numbers falling to 165 from the 190 average of a year ago. Again we are proud of the way in which all members of our staff continue to perform in these extremely trying conditions.
Dividend
After due consideration of the trading conditions, the results achieved and the current outlook, your Board is proposing a final dividend of 1.0p per share, which combined with the interim dividend of 0.6p per share makes a total for the year of 1.6p (2008: 2.2p).
Outlook
Whilst significant new franchises have been secured since year-end, with extended delivery time frames and launch delays, their impact is unlikely to have any swift or strong contribution in the current half. With the experience of the recent past and current negative predictions, it is not possible to be sanguine about the future.
We shall therefore continue, as we have in the past, to manage our resources to the best of our ability and to seek opportunities wherever we can.
D.M.Phillips
Chairman
24 September 2009
For further information, contact:
Northamber Plc David Phillips 020 8296 7000
Charles Stanley Securities Philip Davies 020 7149 6000
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CONSOLIDATED INCOME STATEMENT |
|||
|
For the year ended 30 June 2009 |
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|
2009 |
2008 |
||
|
£'000 |
£'000 |
||
|
Revenue |
139,275 |
179,677 |
|
|
Cost of Sales |
(129,853) |
(167,801) |
|
|
Gross Profit |
9,422 |
11,876 |
|
|
Distribution cost |
(4,919) |
(6,283) |
|
|
Administrative expenses |
(4,823) |
(5,568) |
|
|
Profit from operations |
(320) |
25 |
|
|
Investment revenue |
367 |
602 |
|
|
Finance Costs |
- |
- |
|
|
Profit before tax |
47 |
627 |
|
|
Tax |
5 |
(222) |
|
|
Profit for the year from operations |
52 |
405 |
|
|
Total basic earnings per ordinary share |
0.18p |
1.36p |
|
|
Total diluted earnings per ordinary share |
0.18p |
1.36p |
|
|
CONSOLIDATED BALANCE SHEET |
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|
At 30 June 2009 |
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|
2009 |
2008 |
||
|
£'000 |
£'000 |
||
|
Net current assets |
|||
|
Property, plant and equipment |
2,968 |
3,267 |
|
|
Current assets |
|||
|
Inventories |
7,173 |
10,134 |
|
|
Trade and other receivables |
20,112 |
22,978 |
|
|
Cash and cash equivalents |
14,124 |
13,308 |
|
|
41,409 |
46,420 |
||
|
Total assets |
44,377 |
49,687 |
|
|
Current liabilities |
|||
|
Trade and other payables |
(18,385) |
(22,952) |
|
|
Tax liabilities |
(40) |
(210) |
|
|
(18,425) |
(23,162) |
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|
Non current liabilities |
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|
Deferred tax liabilities |
(2) |
(48) |
|
|
Total liabilities |
(18,427) |
(23,210) |
|
|
Net assets |
25,950 |
26,477 |
|
|
Equity |
|||
|
Share capital |
290 |
294 |
|
|
Share premium account |
5,734 |
5,734 |
|
|
Capital redemption reserve |
1,497 |
1,493 |
|
|
Retained earnings |
18,429 |
18,956 |
|
|
Equity shareholders' funds |
25,950 |
26,477 |
|
|
CONSOLIDATED CASH FLOW STATEMENT |
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|
For the year ended 30 June 2009 |
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|
2009 |
2008 |
||
|
£'000 |
£'000 |
||
|
Cash inflow from operating activities |
|||
|
Operating profit from continuing operations |
(320) |
25 |
|
|
Depreciation of property, plant and equipment |
369 |
425 |
|
|
(Profit)/loss on disposal of property, plant and equipment |
(6) |
(10) |
|
|
43 |
440 |
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|
Decrease in inventories |
2,961 |
1,594 |
|
|
Decrease in trade and other receivables |
2,866 |
3,346 |
|
|
(Decrease) in trade and other payables |
(4,567) |
(2,782) |
|
|
Cash generated from operations |
1,303 |
2,598 |
|
|
Interest paid |
- |
- |
|
|
Income taxes paid |
(211) |
(195) |
|
|
Net cash from operating activities |
1,092 |
2,403 |
|
|
Cash flow from investing activities |
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|
Interest received |
355 |
567 |
|
|
Proceeds from disposal of property, plant and equipment |
18 |
14 |
|
|
Purchase of property, plant and equipment |
(82) |
(134) |
|
|
Rental income |
12 |
35 |
|
|
Net cash from investing activities |
303 |
482 |
|
|
Cash flows from financing activities |
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|
Purchase of own shares for cancellation |
(114) |
(3,791) |
|
|
Dividends paid to equity shareholders |
(465) |
(646) |
|
|
Net cash used in financing activities |
(579) |
(4,437) |
|
|
Net increase/(decrease) in cash and cash equivalents |
816 |
(1,552) |
|
|
Cash and cash equivalents at beginning of year |
13,308 |
14,860 |
|
|
Cash and cash equivalents at end of year |
14,124 |
13,308 |
|
|
Cash and cash equivalents for the purpose of this statements comprise: |
|||
|
Cash and cash equivalents |
14,124 |
13,308 |
|
|
Bank overdraft |
- |
- |
|
|
14,124 |
13,308 |
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STATEMENTS OF CHANGES IN EQUITY
Consolidated statement of changes in equity
At 30 June 2009
|
Share |
Capital |
||||
|
Share |
premium |
redemption |
Retained |
Total |
|
|
capital |
account |
reserve |
earnings |
equity |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Balance at 1 July 2007 |
1,523 |
5,734 |
264 |
22,988 |
30,509 |
|
Profit for the year |
- |
- |
- |
405 |
405 |
|
Total recognised income for the year |
- |
- |
- |
405 |
405 |
|
Dividends |
- |
- |
- |
(646) |
(646) |
|
Purchase of own shares |
(1,229) |
1,229 |
(3,637) |
(3,637) |
|
|
Transaction costs of purchase |
- |
- |
- |
(154) |
(154) |
|
Balance at 30 June 2008 |
294 |
5,734 |
1,493 |
18,956 |
26,477 |
|
Balance at 1 July 2008 |
294 |
5,734 |
1,493 |
18,956 |
26,477 |
|
Profit for the year |
- |
- |
- |
52 |
52 |
|
Total recognised income for the year |
- |
- |
- |
52 |
52 |
|
Dividends |
- |
- |
- |
(465) |
(465) |
|
Purchase of own shares |
(4) |
- |
4 |
(113) |
(113) |
|
Transaction costs of purchase |
- |
- |
- |
(1) |
(1) |
|
Balance at 30 June 2008 |
290 |
5,734 |
1,497 |
18,429 |
25,950 |
Notes:
The financial information set out above does not constitute the group's statutory accounts for the years ended 30 June 2008 or 30 June 2009, but is derived from those accounts. The statutory accounts for the year ended 30 June 2008 have been delivered to the Registrar of Companies and those for 2009 will be delivered following the group's annual general meeting. The auditors have reported on these accounts, their reports were 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.
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The calculation of total basic and diluted earnings per share is based on the following data: |
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|
2009 |
2008 |
||||
|
£'000 |
£'000 |
||||
|
Earnings for the purpose of total basic earnings per share being net profit attributable to equity holders of the parent company |
|||||
|
52 |
405 |
||||
|
Effect of dilutive shares |
- |
- |
|||
|
Earnings for the purpose of diluted earnings per share |
52 |
405 |
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|
2009 |
2008 |
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|
Number |
Number |
||||
|
Number of shares |
|||||
|
Weighted average number of shares for the purpose of |
|||||
|
total basic earnings per share |
29,171,182 |
29,809,125 |
|||
|
effect of dilutive potential of shares - share options |
- |
- |
|||
|
29,171,182 |
29,809,125 |
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A final dividend of 1.0p will be paid on 12 January 2010 to those members on the register at close of business on 4 December 2009.
The Company's registered office is Namber House, 23 Davis Road, Chessington, Surrey KT9 1HS.
Related Shares:
Northamber