Half Yearly Report

Northamber PLC ("the Company")

Interim Statement for the Six months to 31 December 2013

Chairman's Statement

Before reporting the results for the last half year, I am pleased to be able to update that our necessarily accelerated actions to re-focus our business model into new and growth areas are progressing well. Our very strong cash and debt-free financial resources, coupled with flexing our strong market presence and customer base, have enabled and supported the costs of the remaining essential moves to reduce our historic over-dependency on the increasingly troubled PC market sector. Whilst growing our other non PC activities, this ongoing process is modifying our business model with the inclusion of less core hardware dependent solutions, and despite the blurring effect of the unavoidable transitional costs, the results are encouraging.

Shareholders will recall that in my last full year statement, I shared the need to accelerate our move away from our historic very strong PC hardware centric model but which is still an overly challenging, declining market. The challenges of the I.T/Windows Intel sector are being amply demonstrated by the exit in very recent weeks of more major "A" brand vendors, with further over-supply and margin pressures.

However, this has inevitably necessitated wide ranging and costly re-structuring. The costs of this process have been high and again impacted on the results for the first six months of the year, which are poor. The vindication of the changes we have made and are making, however, can be seen as the foundations of a return to a more worthwhile future.

With that explanation, the results for the first six months of the year ended 31 December 2013 are set out below.

Trading results

Sales revenues at £30.2 million reflect the demand erosion in our core sector and sales were some 27% lower than for the comparative period of £41.6 million. More importantly, Gross Margins took the brunt of the ongoing demand downturn and was 6.7% compared with 7.7% a year ago.

Following restructures, we achieved ongoing overhead savings of £770,000 pa, nearly half of which are related to savings in personnel costs and after redundancy payments etc.

The loss before interest and tax is £730,000 and compares with a loss of £328,000 a year ago. Our free cash secured an increase in interest received to £40,000 compared with the £18,000 for the comparable period.

Debt free cash of £5.3million, compared with £3.1m a year ago. Debtors, stocks and unencumbered, formulae depreciated property assets are the un-arguable core strengths of our finances. They are the very strong key feature as I have frequently reiterated, which has enabled us to afford the development of the changing model.

That core and debt free monetary strength has proven invaluable during this ongoing transformation process and enabling us to deliver the changes needed to realign ourselves both against a changed marketplace demand paradigm and new market opportunities. We have the core sales, I.T., marketing and logistic support infrastructure tools we need to enable us to look forward to delivering the changes needed and view the future with confidence.

Balance Sheet

To remind that noted above, our balance sheet remains extremely strong with unencumbered total assets of £29.4 million, including cash of £5.3 million at 31 December 2013. The current assets ratio at 2.9 was slightly down on those of the comparative period of 3.0 but still at a very healthy level. Net Tangible Assets per share at 78.7p were also slightly down on the comparative period of 84.7p.

Dividend

The subject of dividend is complex as to the message it also sends.

Whilst potential conflict decrees I exclude myself from this subject, your board has taken particular consideration of the results for the period and our increased cash at £5.3 million and the strength of our debt free £22 millions of tangible equity on the balance sheet.

At a total cost of only £84,476 your Board is proposing the interim dividend be at the same level as for the interim in the previous year at 0.3p. The dividend will be paid on 12 May 2014 to shareholders on the register as at 11 April 2014.

Outlook

Despite the industry being in a state of flux, an uncertain and challenging position for any reasonable assessment of the future. As I have clarified in the forward to my statement, we are actively taking ongoing actions to both safeguard our position and to develop a situation which will create a much better future for the company.

The start of this calendar year has seen notable improvements and enables confidence that progress is being achieved. Significant changes have already been delivered and will drop to the bottom line over coming months and we believe that progress should be reflected in the results as we go along.

David Phillips

Chairman

6 March 2014

For further information please contact:

Northamber plc 020 8296 7000

David Phillips

Charles Stanley Securities 020 7149 6942

(Nominated Adviser)

Philip Davies

Notes to the financial statements

1. Corporate Information

The financial information for the half year ended 31 December 2013 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 2013 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.

2. Basis of preparation

These interim consolidated financial statements are for the six months ended 31 December 2013. 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 2013.

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 2013 except for the adoption of IAS1 Presentation of Financial Statements (Revised 2007), The group has only one reportable segment therefore no statement of segmental reporting is shown in these interim financial statements.

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. 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. Last year's tax charge was accrued on the estimated average annual effective rate of tax of 20%.

5. Earnings per Share

The calculation of earnings per share is based on the loss after tax for the six months to 31 December 2013 of £690,000 (2012: loss £271,000) and a weighted average of 28,158,735 (2012: 28,158,735) ordinary shares in issue.

6. Property, Plant and Equipment

There were no significant additions to or disposals of property, plant or equipment in the period to 31 December 2013. The reduction in the total value of property, plant and equipment was primarily due to the depreciation charge for the year.

7. Risks and Uncertainties

The principal risks and uncertainties affecting the business activities of the group are detailed in the directors' report which can be found on pages 8 and 9 of the Annual Report and Accounts for the year ended 30 June 2013 (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:-

Marketing 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.

8. Related Party Transactions

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

During the six months ended 31 December 2013, the company paid £12,000 (2012 £Nil) as salary and £140 as benefit to the company Director Of Strategy, Mr A Phillips, who is the son of the Chairman, Mr D M Phillips.

9. 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.