Northamber Dividends - NAR

Northamber Dividends - NAR

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Northamber Plc NAR London Ordinary Share GB00B2Q99X01 ORD 1P
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 73.00 08:00:00
Open Price Low Price High Price Close Price Previous Close
73.00 73.00 73.00 73.00 73.00
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Industry Sector

Northamber NAR Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

tokyojoe007: A few investors discussed this being a value play around 30p on Advfn, noted the Chadwick notifiable RNS (both in originally and reduced last week), and used the liquidity created by the ST tip to get partially out at a healthy return, in what is a v illiquid share. Me for one, that was before knowing about the tip or listening to the Graeme podcast, which I thought was well presented. Anyhow the bigger question is why the sustained rise, whilst Nar intent on doubling down, on their long held distribution focus - long may the share price continue upwards
spob: from memory you talked about liquidity allowing someone to sell and taking advantage of ST to do that and I still think selling Northamber on the back of the ST tip last week is unprofessional you mention someone with a notifiable interest selling NAR what percentage of your listeners have a notifiable interest in any stock Lol I have a position in Northamber built up a long time ago and before the ST tip last week
jpeel60: In this latest podcast, Graham talks about the “Simon Thompson effect” on share prices, Northamber (#NAR), and the astonishing RNS from Tandem Group (#TND), where Graham is a shareholder.
spob: Simon Thompson Investors Chronicle Bargain shares for 2020 7 February 2020 Https:// Northamber Aim: Share price: 53p (6 Feb 2020) Bid-offer spread: 51-55p Market value: £14.5m Website: Founded four decades ago by late chairman David Phillips, Northamber(NAR) is widely recognised as the largest UK-owned trade-only distributor within the IT equipment industry. The business has more than 100 strategic alliances with the industry's leading manufacturers and distributes a comprehensive range of electronic products to provide solutions for the IT and communications needs of small and medium-sized enterprises (SMEs). Northamber is not directly involved with the ultimate users of the products it sells, rather it acts as a hub through which manufacturers provide products to resellers for sale to the ultimate end user. As a result it has to develop strategies with both suppliers and resellers to satisfy the needs of the ultimate users of the products. The strategy is to assess their requirements, source quality products and services from reliable brand-named manufacturers, and make them available to resellers at the best prices in the most efficient time frame. Moreover, with an ever-changing product range coming onto the market, the company needs to seek out fresh new products that will prove attractive to end users. The company operates from its head office in Chessington, Surrey which is home to more than 50 sales and customer support staff and teams working in purchasing, credit service, commercial web and marketing. The IT products are held in an 80,000 sq ft warehouse in Weybridge, which has more than 7,500 pallet bays and 13 loading bays, enabling Northamber to deliver 98.9 per cent of orders the next working day. However, it’s a cut-throat industry, one reason why Northamber has failed to report a profit in any one of the past seven financial years, racking up cumulative pre-tax losses of £6.4m on aggregate revenue of £433m since 30 June 2012. Given this dire performance, and the fact that 85 per cent of the 27.333m shares are held by the top five shareholders, it’s hardly surprising that the shares have underperformed, falling from a peak of 255p two decades ago. In fact, until last summer the share price was trading around its 2009 bear market low of 28p. Despite the chronic underperformance, and a poor operational track record, there are reasons to believe that the share price move since last summer’s lows is the real deal rather than another false dawn. Reasons for optimism Firstly, in the annual results released at the end of last year, acting chairman Geoff Walters made the important point that the planned exit from low-margin and commoditised products is starting to pay off. Gross margin increased from 8.4 per cent in the first half of the financial year to 8.8 per cent on 7 per cent higher six-monthly revenue of £26.1m in the second half. This has been helped by the expansion of audio-visual solutions products. Indeed, increasing profitable product ranges helped drive a reduction in the six-monthly pre-tax loss from £353,000 to £245,000. Also, one reason for the loss is that a supplier of a new product breached its contract with Northamber, which led to lost sales and contribution. Northamber swiftly took action against the supplier and a related party, which has resulted in an interim award judgement of £431,000 plus costs in its favour. Secondly, the company has a cash-rich balance sheet and one that has been boosted significantly following the £16.4m cash sale (post the 30 June 2019 financial year-end) of the aforementioned Weybridge facility. The property was purchased by Northamber for £6.35m in April 2012 and is valued in the company’s accounts at £6m. This means that Northamber’s cash pile will have soared more than fivefold to £19.8m when the sale completed, a significant sum in relation to the company’s market capitalisation of £14.5m and its last reported NAV of £16.6m. Admittedly, Northamber has agreed to pay rent of £175,000 to the vendor of the Weybridge property for the next two years as part of the sale agreement, but it has also recently acquired a 51,000 sq ft freehold warehouse on a two-acre site in Swindon for £3.2m and one that meets the company’s current requirements. It is much closer to its courier partner, too. I would flag up that Northamber holds one other unencumbered freehold property which has a book value of £1.8m and is conservatively valued in the accounts. The point being that even if you ignore the £5m value of these two unencumbered freehold properties, I reckon Northamber’s pro-forma current assets of £29.5m are four times higher than its last reported current liabilities of £7.4m, so the company’s working capital position is incredibly strong and offers investors the “margin of safety” that Ben Graham was looking for. Furthermore, net current assets of £22.1m are 1.5 times the company’s market capitalisation of £14.5m. Factor in the value of the freehold properties and I estimate a live NAV of £26.6m, or 97p a share. That’s almost double the current share price. Thirdly, with the benefits of a cash rich balance sheet, Northamber completed earlier this week the £2.1m acquisition of audio-visual distributor Audio Visual Materials (AVM), a company that reported a pre-tax profit of £300,000 in its 2018 financial year. Northamber’s directors feel the business will help expand its own audio visual segment and drive higher growth for IT and audio visual resellers in certain key areas including professional displays, video conferencing, and room booking systems. After taking into account the improvement in Northamber’s trading results, the contribution from AVM certainly supports a move back towards operating profitability for the enlarged entity. The bottom line Northamber is a debt free company which will have £14.5m of cash once the Swindon warehouse purchase completes, will own two unencumbered freehold properties that are conservatively worth £5m and perhaps significantly more on the open market, and is trading in line with cash even though the business is showing signs of improvement and earlier this week completed the AVM earnings’ accretive acquisition. Also, there is a possibility that Northamber could itself become a target after founder and 63 per cent shareholder Mr Phillips passed away in December at the age of 74. He is survived by his wife, son Alexander (who has a director role at the company) and daughter. Please note that although the shares are tightly held – excluding the top five shareholders there are only 4.1m shares in issue – it’s possible to trade in bargain sizes well in excess of the London Stock Exchange normal market size of 1,000 shares. Indeed, in the past month trades of up to 25,000 shares have passed through the market between the official bid-offer spread. Bargain buy.
eezymunny: Chippenham Sleepy? Meantime an acquisition that actually makes some money. Not much mind by the looks :) htTps:// They can't even get the company name right - I assume it's actually Audio Visual Material Limited.
hugepants: Finals out. Looks pretty much more of the same operationally. However assuming CJohn is correct with the £2M estimate of the cgt liability on the property sale then discount to cash alone is about 25% now?
rndm355: article at Cube.Investments: hTTps://
tokyojoe007: Thanks Arthur, I looked at LDSG, I can see the asset play attraction, someone once said there’s brass to be made in the rag trade, but perhaps that was before globalisation and wafer thin margins on fabrics from intense competition, not to mention a complex legal entity structure at Leeds. Nar have similar pricing pressure but I think i’m more comfortable in the potential margins of higher end tech and AV equipment. I also wonder if NAR are underplaying the valuation on their warehouse and HQ, I saw an article joking about their planning proposal for apartments with a view of an industrial estate, whilst that’s true a google view will show that the flip side of that property backs directly onto a large green belt park/sports pitches. In those areas of London, there would be considerable demand for residential property. The distribution arm itself (with warehouse facilities) must also have some value for another distie looking for their supplier relationships and clients, specifically in the U.K. to pull a percentage point in synergistic cost reduction. Time will tell, NAI...
arthur_lame_stocks: I used to hold these shares for the same reasons as others, the discount to NTAV and the quality of those assets, however I got fed up with watching that value disappear year after year and sold out. Until the controlling family see sense and take steps to realise the value I can't see any reason to hold these. Personally I would buy LDSG if I were looking for this sort of stock as although that doesn't pay a dividend and the assets are not quite such high quality it has at least been consistently profitable for some years and is on a fairly modest valuation as well as a large discount to TNAV.
spob: " Based on the continuing strength of the group's debt free tangible asset base, the board is proposing to pay an unchanged final dividend of £0.1 per share " I assume the directors here do know that 0.1 pounds = 10p idiots
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