Northamber Share Discussion Threads

[cwa1] 09/9/2010 16:56

Indeed. Nice to see it moving in the right direction.

[rainmaker] 09/9/2010 15:12

A purchase of just 2k at 52p but market is very thin and any real buying would have a dramatic effect on the sp

regards

[rainmaker] 07/9/2010 11:09

Thanks CW, post recession,I'm hopeful that their competitors will be more concerned about repairing their battered balance sheets than wafer thin margins and market share if the recovery is sustained. The current rating of Northamber is so derisory than even a poor rating would mean plenty of upside from current levels.

I think we'll see further buybacks of the Company's shares for cancellation given that it is in everybody's interest, as the Company is trading at less than net asset value -the CEO who owns the majority of the shares and the private shareholders since this will boost earnings(yes the Company is actually making money at an operating level) and net asset per share. Furthermore it's the most tax efficient way of returning value to shareholders. Last time I checked Net Cash was 50p a share and with little in the way of capital expenditure requirements, a burgeoning cash balance would be an embarassment.One final point with tax losses from previous years will mean Northamber pay no tax since the business operates in the UK.

regards

[cwa1] 07/9/2010 08:49

It's been quite a long, dark, day with NAR :-)

The spread, and only one market maker, of 5p is pretty ridiculous and will put off many people I suspect, losing about 12% of your money on a purchase straight away takes a bit of beating. At the moment, though, you can only buy 2500 shares online but can sell 15000.

Wonder if they will get back to share buybacks now that the closed period has ended?

[rainmaker] 07/9/2010 08:36

The darkest hour is just before dawn

regards

[cwa1] 07/9/2010 08:14

Results out and about as encouraging as it gets for NAR....



I am pleased to announce improved profitability for the year as a whole and importantly the return to profit at the operating level.

In both my interim and third quarter performance reports, I was unable to be optimistic on the outlook for our sector. Whilst underlying conditions are largely unchanged, I can report that the efficiency improvements to assist profitability came through in our final quarter.

and an interesting, pertinent, comment....

At our 30th June 2010 year end, the net assets per share were 88.5p compared with 89.4p at the end of the previous year. Surprisingly, net assets per share, and even net cash, continue to exceed by quite some margin, the quoted price of the company's shares and resultant market capitalisation

[rainmaker] 24/8/2010 20:33

Agreed ES, by my calculation net cash of 50p a share and IMHO still a buy. It would be nice to see the Company buying back it's shares for cancellation since it's the most tax efficient way of returning value to patient NAR shareholders and as the share price is less than book value, will also boost net assets and earnings per share not to mention supporting the share price.

regards

[empirestate] 31/7/2010 17:05

incredible numbers here. with cash of gbp15m against mcap of gbp12m and a nav of gbp26m, on a gbp120m revenue company. will consider buying a few here as an investment considering they are so illiquid

[rainmaker] 17/5/2010 23:27

Hi Lopster,judging by the price 46p, I think these shares were offered then sold to the Company.Maybe someone panicked that the problems in Greece would spread further afield. Nevertheless I think we should all be doing what we can to encourage the CEO to make further share purchases for cancellation.

regards

[lopster10] 12/5/2010 09:03

RNS Number : 7625L Northamber PLC 12 May 2010

Northamber plc (the " Company")

Purchase of Own Shares

On 11 May 2010 Northamber plc bought 30,000 ordinary shares for cancellation at 46 pence per share, representing 0.10% per cent. of the Company's current issued ordinary share capital.

Following the cancellation of these shares, the Company has 28,938,100 ordinary shares in issue.

The above figure may be used by shareholders as the denominator for the calculations by which they can determine if they are required to notify their interest in, or a change to their interest in the company, under the Disclosure and Transparency Rules.

12 May 2010

For further information, contact:

Northamber Plc
David Phillips Tel: [phone]


Charles Stanley Securities
Russell Cook / Jen Boorer Tel: [phone]


This information is provided by RNS The company news service from the London Stock Exchange


END



Another buy back of an even larger amount of shares, I wonder if this will begin to impact the price soon?

[davius] 06/5/2010 14:27

I'd say it's fair considering how the IT market is at present. My main concern as a supplier (and hence the performance of the likes of Northamber) is what will happen when the next government takes the axe to public spending. I sell primarily into the education sector and have already noticed decreased volumes, they could slide significantly further, as IT will be an easy target to use to defer spending. Margins in this business are ludicrous, it's volume that keeps us solvent. If that tails off there will be knock on effects, the interim statement suggests they've already started.

[sleepy] 06/5/2010 01:06

Any thoughts on the Interim Management Statement?

[rainmaker] 05/5/2010 21:17

TIDMNAR

RNS Number : 2849L
Northamber PLC
05 May 2010

?

Northamber Plc

Interim Management Statement

3rd Quarter to 31 March 2010


The performance for the the first quarter of 2010 supported the interim report
prediction, that the near future did not auger well for any significant change.

The lack of strength in the market is evidenced by the unwillingness of vendors
to increase prices which would normally be driven by weaker sterling. Without
empty revenue having been pursued, the resulting slow decline in turnover
continued into the 3rd quarter of our year. However, we were able to maintain
our gross profit margins compared to the equivalent quarter a year ago.

As ever, working capital management is a core element of our management
processes. Despite adverse conditions and continuing our strategy of always
remaining within-terms or seeking early settlement discounts, we maintained our
cash surplus which showed an improvement of GBP1.5 million compared with GBP13.1
million a year ago and GBP13.5 at the 31st December 2009 half year.

As a demonstration of our capital management, after dividend payments, share
buy-backs and depreciation for the 12 months since 1st April 2009 (which were in
excess of GBP900,000 and equivalent to 3.15 pence per share) as at 31st March
this year, the Net Asset Value per share has only decreased by 1 penny per share
to 88 pence per share as at 31 March 2010.

As reiterated in my half year statement, in the current circumstances our policy
is to carefully monitor our performance on a daily basis. With the actions
taken earlier in the year we were able to reduce the net operating expenses by
some GBP1.3 million (16.8%) compared with the same period last year.

The interest able to be earned on our significant debt-free cash balances and
the GBP14.6 million cash balance as at 31 March, remained sharply reduced. The
marginal levels of interest rates available, resulted in less than one third of
last year's investment income. When compared with the 0.3% of turnover loss
last year for the same period, the result for the first 9 months of the current
year slightly exceeded break-even, before tax, and was a creditable performance.

Outlook

As now widely reported within the sector, for the month of April, the level of
UK sales of PC's and IT equipment generally were far lower than anticipated.
Possible causes have been as variously and widely attributed as the re-emergence
of commercial user's March year-end budgets and the volcanic ash disruption.

Whichever combination is revealed in hindsight, the fall off in demand was
reflected similarly in our own April sales levels. As that may have been a
one-off impact it is too early to assess the effect on the potential outcome for
the remainder of our own financial year.


5 May 2010


For further information, contact:

Northamber Plc
David Phillips
Tel: [phone]

Charles Stanley Securities
Russell Cook / Jen Boorer
Tel: [phone]



This information is provided by RNS
The company news service from the London Stock Exchange
END

IMSKKQDNNBKDDPK

[lopster10] 03/4/2010 13:41

Interim divi now paid out and a further buy back of 10,000 shares (31/03/2010) - should hopefully see a rise soon,

Lopster

[rainmaker] 16/3/2010 19:47

Thanks Loster,had a quick look through and a good piece- well worth a read.Of course buy backs also support the share price.Northamber up again today but when I last looked there was no volume. Looks like we could soon see 60p+

regards

[lopster10] 16/3/2010 10:29

Thanks for the update RM - if anyone else is interested in reading a bit more about buy backs theres a small article I found quite useful here:



Obviously aimed at people who are relatively new to trading!

Regards,

Lop

[rainmaker] 16/3/2010 00:21

Nice to see the Company back in the market for it's own shares, another 10k purchased at 50p, reported on 9 March follows two individual purchases in February.As anyone who has followed Character Group(CCT) purchasing it's own shares for cancellation in a thin market, will tell you, this can have a dramatic effect on the share price.Of course it makes perfect sense for Northamber to return value to shareholders in this tax efficient way since it increases earnings and net asset value per share as the shares are being bought at less than net asset value.


regards

[rainmaker] 06/3/2010 16:30

Just some further thoughts on Northamber(NAR). Somewhere on this BB, I've commented on this Company buying back it's own shares for cancellation.I've also noted that the market in it's shares is thin and remarked that it could have a dramatic effect on the share price if they continue to buy back their own shares. Well, there's another RNS yesterday- Friday 26 February stating that they bought a further 10,000 for cancellation.If you look at Character Group(CCT) for example,you will see they also been doing the same and you should also note the hugely positive effect it has had on their share price.They initially started buying shares at 84p and within weeks the share price reached 106p.


Obviously I'm looking for a Northamber share price rise from current levels of 47p/52p, as Investors buy in anticipation or a realisation of a recovery in their markets. Northamber's Tangible Net Asset Value is 90p and cash is 46p a share. However it's important and pertinent to state that a Company buying back it's shares for cancellation is the most tax efficient way a Company can return money to shareholders-if they paid a special dividend then investors would have to pay tax. Furthermore as Northamber is trading below net asset value they will actually boost their net asset value per share and their earnings per share by taking this action so it is very much in shareholders (and that of the CEO who owns the majority of the shares) best interest for them to continue to so.

The important yet simple point I'm making, is that the Northamber share price can go sharply higher short term without any signs of a recovery in the business simply by the Company purchasing further shares for cancellation.

regards

[louisr2] 01/3/2010 08:56

Thank you! Appreciated.

[cwa1] 01/3/2010 08:52

Hi

In view of all the circumstances, your board has decided to pay an unchanged interim dividend of 0.6p per share (2008 0.6p per share). The interim dividend will be paid on 31 March 2010 to those shareholders on the register at 5 March 2010.

So, yes, XD on 3/3/10

[louisr2] 01/3/2010 08:48

Am I right in saying that NAR goes ex-dividend on 3 March 2010?

[rainmaker] 28/2/2010 19:32

Since it makes economic sense for Northamber to repurchase shares for cancellation at less than net asset value (see previous post)as they have been doing recently,in theory at least, the share price can reach 90p.

regards

[rainmaker] 27/2/2010 13:50

Just some further thoughts on Northamber(NAR). Somewhere on this BB, I've commented on this Company buying back it's own shares for cancellation.I've also noted that the market in it's shares is thin and remarked that it could have a dramatic effect on the share price if they continue to buy back their own shares. Well, there's another RNS yesterday- Friday 26 February stating that they bought a further 10,000 for cancellation.If you look at Character Group(CCT) for example,you will see they also been doing the same and you should also note the hugely positive effect it has had on their share price.They initially started buying shares at 84p and within weeks the share price reached 106p.


Obviously I'm looking for a Northamber share price rise from current levels of 47p/52p, as Investors buy in anticipation or a realisation of a recovery in their markets. Northamber's Net Asset Value is 90p and cash is 46p a share. However it's important and pertinent to state that a Company buying back it's shares for cancellation is the most tax efficient way a Company can return money to shareholders-if they paid a special dividend then investors would have to pay tax. Furthermore as Northamber is trading below net asset value they will actually boost their net asset value per share and their earnings per share by taking this action so it is very much in shareholders (and that of the CEO who owns the majority of the shares) best interest for them to continue to so.

The important yet simple point I'm making, is that the Northamber share price can go sharply higher short term without any signs of a recovery in the business simply by the Company purchasing further shares for cancellation.

regards

[cwa1] 22/2/2010 13:31

Bit more like it :-)

[rainmaker] 22/2/2010 08:43

Moving up nicely, 47p/52p.IMHO plenty more upside from current levels.

regards