28th Feb 2007 07:02
Northamber PLC28 February 2007 Northamber PLC ("the Company") Interim Report & Accounts (Unaudited) For Six Months Ended 31 December 2006 Chairman's Statement Results The previously reported disappointing sector trading conditions continued toconstrain opportunities and with unabated price deflation in many key productareas, provided little scope for improvement in revenue. This resulted in pre-tax profits of £0.37 million (2005 first half -£0.32million) but reduced revenues of £95.27million (2005 first half- £116.03million). Our stringent cost controls meant that despite the reduction inrevenues, the impact on gross profit, down to £6.75 million (2005 first half£7.79 million) was partially offset by a reduction in the cost of sales. Profitbefore tax increased from £0.32 million to £0.37 million for this half yearlargely due to the increase in investment income. As a result earnings per shareincreased from last year's 0.63p to 0.78p. During the period we continued to maintain trading and stock profiles whichreflected the commercial realities and avoided excessive or unrewarding risks. Working capital management continued to be key. With comparative net operatingexpenses reducing by £1 million. Debtor days and Creditor days were in line withthose for the first half of 2005/6 but there was a slight decline in the ratioof stock turns. With the challenging trading environment once again the performance of ourmanagement team is appreciated. The Balance Sheet The results of our negotiations to sell the 'Lesser Interest' in our enterprisezone investment property in Arbroath for £2.43 million and as referred to in mylast statement, were concluded and the cash was received in October 2006. One result of falling prices and with that debtor finance needs, has been tofirm the availability of surplus cash. When including the further influx fromthe investment property proceeds, your board is reviewing the possibility ofreturning a prudent portion of surplus cash to shareholders. After dividend, there was a small decrease in the total net asset value atperiod end to £30.0 million or 98.5p per share (2005: 99.5p). Dividend The balance sheet continues to be exceptionally sound, with a very strong cashposition. With these results your Board feels it appropriate to pay an interim dividend of1.2p (2005 - 1.1p). This interim dividend will be payable 11th May 2007 tomembers on the Register as at 20th April 2007. Outlook The Board is necessarily cautious for the outcome of the current trading year.The slower than expected uptake for Microsoft's newly launched Vista and theunrewarding state of the market in which we operate is not encouraging. Wecontinue with careful cost controls and an experienced management team. TheCompany is well positioned to take advantage of any improved tradingopportunities within the sector. D.M. Phillips Chairman 28 February 2007 Northamber plc Consolidated Income Statement 6 Months to 31-12-06 6 months ended 6 months ended Year ended 31.12.06 £'000 31.12.05 £'000 30.06.06 £'000 Revenue 95,272 116,032 204,408 Cost of sales 88,523 108,242 189,912Gross Profit 6,749 7,790 14,496 Net operating expenses 6,656 7,675 14,369Profit from operations 93 115 127 Investment revenue 312 202 337 Finance costs (36) (1) (30)Profit before tax 369 316 434 Tax 3 129 121 203Profit for the period from continuingoperations 240 195 231 Earnings per ordinary share 0.78p 0.63p 0.75pDiluted earnings per share 0.78p 0.63p 0.75p Reconciliation of Movements in Shareholders' Funds 6 months ended 6 months ended Year ended 31.12.06 £'000 31.12.05 £'000 30.06.06 £'000 Capital items Dividends (305) (1,241) (1,576) Purchase of own shares - ( 46) (421) (305) (1,287) (1,997) Total recognised income and expense for the period 240 195 231 Movement in shareholders' funds for the period (65) (1,092) (1,766) Opening equity shareholders' funds 30,078 31,914 31,844Closing equity shareholders' funds 30,013 30,822 30,078 Consolidated statement of recognised income and expense Total income recognised directly in equityProfit for the period 240 195 231Attributable to equity shareholders 240 195 231 Northamber plc Consolidated balance sheet at 31-12-06 Notes As at 31.12.06 As at 31.12.05 As at 30.06.06 £'000 £'000 £'000Non current assetsProperty, plant and equipment 4 3,707 4,074 3,911Investment property - 2,483 - 3,707 6,557 3,911Current assetsTrading investments - 1 1Inventories 17,064 18,690 9,052Trade and other receivables 30,393 37,791 27,644Cash and cash equivalents 9,024 3,987 9,821 56,481 60,469 46,518Assets held for sale - - 2,483 Total assets 60,188 67,026 52,912 Current liabilitiesTrade and other payables 29,286 34,094 20,426Bank overdraft - - 1,522Current taxation 129 122 126Provisions - 1,228 - 29,415 35,444 22,074Non current liabilities Deferred tax liabilities 760 760 760Total liabilities 30,175 36,204 22,834Net assets 30,013 30,822 30,078 EquityShare capital 1,523 1,548 1,523Share premium account 5,734 5,734 5,734Capital redemption reserve fund 264 239 264Retained earnings 22,492 23,301 22,557Equity shareholder's funds 30,013 30,822 30,078 Northamber plc Consolidated cash flow statement 6 Months to 31-12-06 6 months to 6 months to Year to 30.06.06 31.12.06 31.12.05 £'000 £'000 £'000Operating activitiesOperating profit from continuing operations 93 115 127Depreciation of property, plant and equipment(Profit)/loss on disposal of property, plant and 231 308 564equipment 72 - (7)Operating profit before changes in working capital 396 423 684(Increase)/decrease in inventories(Increase)/decrease in trade and other receivables (8,012) (4,800) 4,838(Decrease)/increase in trade and other payables (2,749) (6,570) 3,576 8,555 5,615 (8,109)Cash generated from operations (1,810) (5,332) 989 Interest paid (36) (1) (30) Income taxes paid (126) (407) (485)Net cash from operating activities (1,972) (5,740) 474Cash flows from investing activities Interest received 251 87 139 Proceeds from disposal of property, plant andequipment 26 1 17Proceeds from disposal of investment property Purchase of property, plant and equipment 2,434 - -Income from investments (75) (164) (266) 61 114 198Net cash from investing activities 2,697 38 88Cash flows from financing activities Purchase of own shares for cancellation - (46) (421) Dividends paid to equity shareholders - - (1,576)Net cash used in financing activities - (46) (1,997)Net (decrease)/increase in cash and cash equivalents 725 (5,748) (1,435) Cash and cash equivalents at beginning of period 8,299 9,735 9,734 Cash and cash equivalents at end of period 9,024 3,987 8,299 Cash and cash equivalents for the purpose of thisstatement compriseCash and cash equivalents 9,024 3,987 9,821Bank overdrafts - (1,522) 9,024 3,987 8,299 Northamber plc Notes to the accounts 1. Basis of preparation These financial statements do not constitute statutory accounts and have notbeen audited. They have been prepared in accordance with InternationalAccounting Standard ((IAS) 34, Interim Financial Reporting. 2. Accounting policies The policies set out below have been consistently applied to all the periodspresented in these financial statements and will apply for the full year to 30June 2007. 3. Tax charge The interim period tax charge is accrued on the estimated average annualeffective tax rate of 35% (6 months ended 31 December 2005 - 38%). 4. Property, plant and equipment 6 months to 6 months to Year to 30.06.06 31.12.06 31.12.05 £'000 £'000 £'000At beginning of period 3,911 4,219 4,219Additions 75 164 266Disposals (48) (1) (10)Depreciation (231) (308) (564)At end of period 3,707 4,074 3,911 5. Related party transactions Mr D M Phillips is the ultimate controlling party of the company. During the period the company payroll manager, Mrs S Matthews was paid £23,652as salary and £4,139 as benefit. Mrs S Matthews is the wife of the managingdirector Mr H W Matthews. In the opinion of the directors the payments were madeon an arms length basis. 6. Earnings per Share The calculation of earnings per share is based on profits of £240,000 (2005 -£195,000) on the weighted average number of 30,458,100 (2005 -30,516,719)ordinary shares in issue. 7. Availability of Document A copy of the Interim Statement is being sent to all shareholders and isavailable to the public from the Company's trading office at Namber House, 23Davis Road, Chessington, Surrey, KT9 1HS. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Northamber