Northamber Share Discussion Threads

[sleepy] 01/6/2011 15:26

Its certenly not yer avrege company!

[hybrasil] 01/6/2011 09:40

Its a hoot company buys in 201 k shares at 61p and the share price stays below this level?

[rainmaker] 13/5/2011 14:46

Is there something rather unusual going on here?. Co's broker buys absolutely everything at 59.5(apprx 130k yesterday practically unheard of for a share that doesn,t trade most days)then again today and someone pays 61k at 61p today.I'm running all my positions...something maybe afoot...MBO?Anyway I believe it's worth hanging around to find out. Co or majority shareholder has 3 days to report dealings to the market. I'll be looking for more trades of significant size outside of the offer this afternoon.Intriguing

regards

[rainmaker] 13/5/2011 12:41

check level 2 and you'll see it's FOXD-Fox Davies, Northamber's own Broker on the bid at 59.5p

regards

[rainmaker] 12/5/2011 13:15

Agreed CW.Looks like Co may have finally been buying back shares it's for cancellation?As 118k trades all sales and the bid hasn't budged.Should be confirmation tomorrow. I still think there is a chance of a return of capital in the next few months.

regards

[cwa1] 12/5/2011 09:32

Turnover for the year to 31 March 2011 is 0.7% higher than for the same period last year, whilst our third quarter proved somewhat resilient compared with other sectors and turnover was only some 2% lower than that of the second quarter. Ignoring some very low margin product areas that were discontinued during the period, turnover in the third quarter delivered a quarterly increase of 13% against the second quarter. This is a creditable result in the light of the trading difficulties already highlighted by others in the sector.

However as advised above, it was overall a confusing picture. Pressure on margins continued during the period to an extent that our overall gross margins for the year to date, were reduced by 0.7%. Our long standing position on "empty revenue" remains unchanged and that pressure has been, and still is, a continuing presence in our sector. Whilst newer vendors and products are contributing, disappointingly we are having to hold a watching brief on some of our smaller revenue contributors.

As would probably have been expected, we continued our pressure on year to date overheads and are pleased to report a 6.5% reduction against last year.

As stated in the interim results statement released in February, we are taking steps to strengthen management and promote growth in the business, but not at 'any price'. There will be some resultant additional overheads in the near future, but these are anticipated to be reflected in a stronger trading position in due course.

At the end of March we continued to have a strong balance sheet, with the seasonally higher levels of stocks and debtors, the cash balance is just over GBP10 million, after the final dividend paid in January. Despite our considerable cash reserves, investment income from interest remains very low in the ongoing low interest rate environment.

The year to date overall result currently show a small loss, when compared with an effective break even position this time last year.

The well publicised uncertainty in the economic climate makes any estimate of the future fraught, particularly with the impact of cuts and inflation which have yet to be felt.

Our results, whilst far from satisfactory, are considered to be reasonable in the circumstances and we have and are taking steps to strengthen the underlying operations of the Company based on the sound foundation of our strong and liquid balance sheet.

Not exactly inspirational but I suppose that was expected. £10m nett cash on the books for a £17 capped company certainly should keep holders feeling relatively safe even if recovery is still some way off.

[rainmaker] 11/4/2011 20:54

Hmmmmmmmm.I wonder if that purchase for 25k was the Company buying back shares for cancellation? Do they read these BBs?

regards

[rainmaker] 11/4/2011 01:43

Thanks OB and CW-Hopefully the reason NAR haven't been buying back their shares for cancellation will soon become apparent. I think they've done a great job running the business under testing circumstances but IMHO they don't have any excuse for maintaining such a high cash balance.

regards

[cwa1] 06/4/2011 23:46

Many thanks for that OBR. Apologies to all for the off topic.

[old boy returns] 06/4/2011 23:44

Hi CWA1 - for a 'boring' but steady return I like the perpetual NatWest sterling pref (NWBD) which yields a shade under 9%.

Also Lloyds ECNs are attractive especially if held in a tax wrapper.

For something a bit more racey, providing you are prepared to wait, Bradford & Bingley bonds with deferred coupons should turn out to be a good investment.

I publish a website covering all this at www.fixedincomeinvestments.org.uk

[cwa1] 06/4/2011 10:34

Morning OBR

I agree with your sentiment entirely!

If I may ask, what are your favourite bonds and preferences currently? This is an area that I am currently interested in.

Thanks in advance.

[old boy returns] 05/4/2011 18:38

rainmaker - I agree they should pay out the excess cash to shareholders in the form of a special dividend. I do not know whose interests they think they are acting by hoarding it and only earning a measily interest rate on deposit. In the hands of shareholders we could be earning a return of 8-10% by investing it in bonds and preference shares.

[rainmaker] 04/4/2011 19:11

Hi M-Just continuing to patiently hold.Last time I checked minimum liquidation value was 79p a share. Company have already remarked on large and "surprising" gap between the share price and tangible net asset value of 88/89p a share yet have so far done nothing about it ie no special dividends, buybacks.I'm hoping there will be a special dividend in May with the trading update as they clearly have far more cash than they need for their working capital requirements and maybe that's the reason why there're not spending money buying shares for cancellation.The much heralded rise in interest rates will be great news for Northamber shareholders since it will boost earnings and force the Company(providing trading does not deteriorate)to increase their dividend.

regards

[mctmct] 04/4/2011 12:51

Rain

It's suddenly gone very quiet here. Any explanation?

mct

[rainmaker] 23/2/2011 21:17

Interesting short piece on the outlook for UK interest rates-



regards

[rainmaker] 23/2/2011 20:22

CW-Is it too much to ask that the 25k share purchase yesterday was Northamber(NAR) for cancellation? They've got three days to report it so we could hear something tomorrow. There was a flurry of buybacks after the final results last year so hope for more of the same now.Since Northamber(NAR)have cash way in excess of their working capital requirements, they should be following this course of action to return value to shareholders in the most tax efficient manner possible whilst at the time boosting the share price, eps and nav.

Well, we have historically low interest rates in the UK of just 0.5% so even the forecast modest increases in interest rates will have a dramatic effect on their earnings through finance income on that cash pile.That factor together with buybacks and a steep discount to net working capital at 80p, TANGIBLE net assets of 89p, makes this a buy.I'll continue to hold. Situations like this make you appreciate shares like CML Microsystems(CML) and French Connection(FCCN)up 400% and 300% respectively since I was buying roughly a year ago.The results are until Dec 31 at period of high cash demand so let's see what the trading update brings in May.

regards

[cwa1] 22/2/2011 08:05

Steady as she goes I suppose?



One of these days we'll get a breakthrough.....

[rainmaker] 06/2/2011 17:59

Watch out for interim results for trade only IT Distributor,Northamber(NAR) due in the next week or so(last year released on 18 February).Company's trading at roughly a three year high, 57p/62p although some way off it's 92p 5 year high in 2006.Tangible net assets are 88p a share and net working capital just 79p.

Of particular interest is going to be Company's net cash balance,it's gross margins and stock turn.Can Northamber increase it's wafer thin margins on it's huge £128.5mln annual turnover?Regardless it's a well managed business-bad debts were just £38k last year and they have removed a further £1.26 mln of operating costs.Company's cash balance was £14mln at the end of June 2010 and interest on it's cash was just £142k less than of half of the previous year's £367k. If the Bank Of England decide to raise interest rates next week they will obviously be a beneficiary.I believe there is a chance of a special dividend with these results since the Company have far greater cash than they need for their working capital requirements and they have been particularly quiet with share buybacks of late. Furthermore they have a good record of returning value to shareholders, having paid 19p a share on dividends and special dividends over the last four years.

regards

[rainmaker] 29/1/2011 00:28

Sleepy-why does any PLC change their Broker?Answer-because they're sure the new Broker will do a better job!

I remember the founder and major shareholder, David Phillips commenting on the surprisingly large disparity between net asset value now approx 89p and the share price and believe he thinks the new broker's better coverage will close that gap.

regards

[sleepy] 28/1/2011 17:18

Anyone know story behind new broker - who seem to specialise in mining, oil exploration etc?

[cwa1] 28/1/2011 07:16

Appointment of FoxDavies as Financial Adviser & Stockbroker

Northamber plc is pleased to announce that it has appointed FoxDavies as the Company's Financial Adviser and Stockbroker with immediate effect.

[rainmaker] 27/1/2011 23:36

Expect interim results for Northamber(NAR)in the next two/three weeks(last year 18 February).It's going to be interesting to discover whether they have managed to increase their wafer thin margins on that huge turnover.Annual turnover was £128.5mln but net income just £170k in the year to 30 June 2010. The much heralded rise in interest rates will be good news since investment income shrunk from £367k in the previous year to just £42k.

regards

[hybrasil] 20/1/2011 15:53

Sleepy- You are everywhere!
Just checked again 10k available at 63p.

[sleepy] 20/1/2011 14:02

Welcome aboard Hybrasil!

[rainmaker] 20/1/2011 12:18

Thanks Hybrasil-still unloved and very undervalued. Good old fashioned value.Unquestionably patience trying but worth the wait.

regards