Buy
Sell
Share Name Share Symbol Market Type Share ISIN Share Description
Northamber Plc LSE:NAR London Ordinary Share GB00B2Q99X01 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.50 0.68% 74.00 72.00 75.00 73.50 73.50 73.50 160 16:35:27
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Technology Hardware & Equipment 52.8 9.9 31.2 2.4 21

Northamber PLC Half-year Report

12/02/2021 7:00am

UK Regulatory (RNS & others)


Northamber (LSE:NAR)
Historical Stock Chart


From Feb 2021 to Apr 2021

Click Here for more Northamber Charts.

TIDMNAR

RNS Number : 8734O

Northamber PLC

12 February 2021

Northamber PLC

("Northamber" or the "Company" or the "Group")

Interim Report for the Six months to 31 December 2020

Chairman's Statement

Results

We are very pleased to be able to report an operating profit driven by year-on-year gross margin growth and year-on-year revenue growth for the last 6 months despite challenging market conditions.

Our early decision to stay true to our values and prioritise our team and partners by avoiding any furlough or COVID related cuts, evolved during the period and we invested further in growing our teams, all of which has proven fruitful. Revenues increased 13% in the first half from GBP26.3 million to GBP29.6 million for the comparative period last year. More significantly, this revenue growth was combined with a significant increase in Gross Margin from 8.8% to 12.8%; the cumulative effect of both was to increase Gross Profit by GBP1.5m from GBP2.3 million to GBP3.8 million, an increase of 65%. The improvement in Gross Margin resulted from our evolving product mix towards higher margin, more technical products through Northamber and AVM.

Previously discussed lockdown challenges have impacted performance in some of our strategic business units and our subsidiary AVM, as site restrictions limited access for higher end projects but we are hopeful of improved performance as these restrictions ease later in 2021 and beyond.

It is clearly pleasing to see a 65% increase in Gross Profit year on year however our focus on efficiency and cost management remains strong; we remain focused on optimising the business for long term results and investing as needed to drive this. Our warehouse changes in the last financial year was a significant undertaking and we are seeing the benefits through an improved cost base, whilst still providing significant capacity to scale the business further.

To support this increase in Gross Profit, and in anticipation of continued growth, our Distribution costs increased year on year from GBP1.53 million to GBP2.28 million; part of this costs increase also came from the addition of AVM to the group. Administrative costs also increased marginally from GBP1.15 million to GBP1.29 million as we continue to invest to support our future plans.

Financial position

Stock levels are higher than last year at GBP8.4 million against GBP4.5 million, in part due to the AVM acquisition, and also as we continued to seek to profitably support our partners by maintaining sufficient stock in country during the uncertainty of logistics derived from Brexit and COVID impacts on supply chains. We see our flexibility on local stock levels as a key driver of our future with our partners, who have recognised the benefits of Northamber's financial strength in underpinning this.

Cash was GBP10.8 million at 31 December 2020 compared with GBP14.7 million at 31 December 2019, reflecting the sale of the Brooklands distribution centre and the purchase of the new Swindon warehouse, the acquisition of AVM and a new office, where AVM is now located. With Fixed Assets at book value at GBP7.1 million, including three unencumbered freehold properties, the Group's overall financial position is very sound.

Net Assets at 92.3p per share are considerably in excess of the average price of the ordinary shares throughout the period.

Dividend

As in previous years, your Board has had regard to the strength of our debt free, tangible asset strong balance sheet and is proposing the interim dividend be 0.3p, at a total cost of GBP81,695. The dividend will be paid on 27 May 2021 to shareholders on the register as at 30 April 2021.

Staff

The Board remain grateful and pleased for how our team continues to pull together to flexibly support our partners and each other through these unprecedented times. We strongly believe that our staff are a key differentiator for our business and we are delighted to be able to continue to grow with them and offer them continued job security. We intend to continue to invest in our evolving business model by continuing to invest in building out the best team in the market to achieve our business evolution.

Outlook

In keeping with the outlook we shared in our recently published full year results, we remain cautiously optimistic that the investments we have made in supporting our partners coupled with removing the one off costs tied to moving warehouse should be reflected in the trading results for the current financial year and allow us to build on our profitable first half. We necessarily remain cautious due to the economic uncertainty, Brexit and the potential further impact of COVID on demand and the supply chain, but feel strongly that our continued focus on strategic higher margin value categories provides a solid road map for the future with profitable growth opportunities and the ability to unlock long term value for shareholders.

The strength of our balance sheet allows us to continue to do what is best for the business strategically and we continue to review organic and non-organic opportunities for growth which meet our strict criteria and add value for our shareholders.

C.M.Thompson

Chairman

12 February 2021

Contacts:

 
 Northamber PLC Tel: +44 (0) 208 744   investor_relations@northamber.com 
  8200 
  Colin Thompson, Chairman 
 
 N+1 Singer (Nominated Adviser and     Tel: +44 (0) 207 496 
  Sole Broker)                          3000 
 Philip Davies (Corporate Finance) 
  Alex Bond (Corporate Finance) 
 
 
 Consolidated Statement of Comprehensive Income 
 6 months to 31 December 2020 
 
                                            6 months    6 months       Year 
                                               Ended       Ended      Ended 
                                            31.12.20    31.12.19   30.06.20 
                                             GBP'000     GBP'000    GBP'000 
                                           Unaudited   Unaudited    Audited 
 
  Revenue                                     29,679      26,273     52,835 
  Cost of sales                             (25,878)    (23,972)   (47,998) 
                                          ----------  ----------  --------- 
  Gross Profit                                 3,801       2,301      5,478 
 
    Distribution cost                        (2,284)     (1,533)    (3,601) 
  Administrative costs                       (1,294)     (1,152)    (2,613) 
  Administrative costs-Exceptional 
   acquisition costs                               -           -      (220) 
  Other income-Exceptional 
   gain on disposal of property                    -      10,203     10,804 
 
  Profit from operations                         223       9,819      9,848 
  Investment revenue                               7         167         92 
  Finance cost                                     -           -       (15) 
                                          ----------  ----------  --------- 
  Profit before Tax                              230       9,986      9,925 
  Tax charge                                       -     (1,643)    (1,413) 
                                          ----------  ----------  --------- 
  Profit and total comprehensive 
  Income for the period                          230       8,343      8,512 
                                          ----------  ----------  --------- 
 
 
 
    Basic and diluted profit 
     per ordinary share                        0.84p      30.50p     31.16p 
 
 

Consolidated Statement of Financial Position

As At 31 December 2020

 
                                                         6 months          6 months              Year Ended 
                                                   Ended 31.12.20             Ended                30.06.20 
                                                                           31.12.19 
                                                          GBP'000           GBP'000                 GBP'000 
                                                        Unaudited         Unaudited                 Audited 
 
 Non -current assets 
 Property, plant and equipment                              7,102             5,169                 7,184 
 Goodwill and intangible assets                             1,391                 -                 1,421 
                                                 ----------------      ------------      ---------------- 
                                                            8,493             5,169                 8,605 
                                                 ----------------      ------------      ---------------- 
 Current assets 
 Inventories                                                8,401             4,458                 5,948 
 Trade and other receivables                                8,821             8,137                 7,750 
 Cash and cash equivalents                                 10,802            14,675                10,968 
                                                           28,024            27,270                24,666 
                                                 ----------------      ------------      ---------------- 
 
 Total assets                                              36,517            32.439                33,271 
                                                 ================      ============      ================ 
 
 Current liabilities 
 Trade and other payables                                (11,372)           (7,461)               (8,356) 
 
 Total liabilities                                       (11,372)           (7,461)               (8,356) 
                                                 ----------------      ------------      ---------------- 
 
 Net assets                                                25,145            24,978                24,915 
                                                 ================      ============      ================ 
 
 
 Equity 
 Share capital                                                272               273                   272 
 Share premium account                                      5,734             5,734                 5,734 
 Capital redemption reserve                                 1,514             1,513                 1,514 
 Treasury shares                                                -               (7)                     - 
 Retained earnings                                         17,625            17,465                17,395 
                                                 ----------------      ------------      ---------------- 
 Equity shareholders' funds attributable 
  to the owners of the parent                              25,145            24,978                24,915 
                                                 ================      ============      ================ 
 
 
 

Company Statement of Financial Position

As At 31 December 2020

 
                                                       6 Months          6 months    Year Ended 
                                                          Ended             Ended      30.06.20 
                                                       31.12.20          31.12.19 
                                                        GBP'000           GBP'000       GBP'000 
                                                      Unaudited         Unaudited       Audited 
 
 Non -current assets 
 Property, plant and equipment                            1,687             1,730         1,748 
 Investments                                              2,135             6,588         2,135 
                                                 --------------      ------------  ------------ 
                                                          3,822             8,318         3,883 
                                                 --------------      ------------  ------------ 
 Current assets 
 Inventories                                              7,748             4,458         5,304 
 Trade and other receivables                              8,248             7,974         7,509 
 Cash and cash equivalents                                7,809             3,012         4,700 
                                                         23,805            15,444        17,513 
                                                 --------------      ------------  ------------ 
 
 Total assets                                            27,627            23,762        21,396 
                                                 ==============      ============  ============ 
 
 Current liabilities 
 Trade and other payables                              (14,684)          (10,945)       (8,709) 
 
 Total liabilities                                     (14,684)          (10,945)       (8,709) 
                                                 --------------      ------------  ------------ 
 
 Net assets                                              12,943            12,817        12,687 
                                                 ==============      ============  ============ 
 
 
 Equity 
 Share capital                                              272               273           272 
 Share premium account                                    5,734             5,734         5,734 
 Capital redemption reserve                               1,514             1,513         1,514 
 Treasury shares                                              -               (7)             - 
 Retained earnings                                        5,423             5,304         5,167 
                                                 --------------      ------------  ------------ 
 Equity shareholders' funds attributable 
  to the owners of the parent                            12,943            12,817        12,687 
                                                 ==============      ============  ============ 
 
 
 
 
 Consolidated Statement of Changes 
  in Equity 
 As at 31 December 2020 
 
                                                  Share       Capital 
                                       Share    premium    redemption   Treasury     Retained     Total 
                                     capital    account       reserve     Shares     earnings    Equity 
                                     GBP'000    GBP'000       GBP'000    GBP'000      GBP'000   GBP'000 
 
  Period to 31 December 
   2019 
  Unaudited 
  Balance at 1 July 2019                 273      5,734         1,513        (7)        9,122    16,635 
  Dividends                                -          -             -          -            -         - 
  Profit and total comprehensive 
  income for the period                    -          -             -          -        8,343     8,343 
                                   ---------  ---------  ------------  ---------  ----------- 
  Balance at 31 December 
   2019                                  273      5,734         1,513          -       17,465    24,978 
                                   ---------  ---------  ------------  ---------  -----------  -------- 
 
  Period to 31 December 
   2020 
  Unaudited 
  Balance at 1 July 2020                 272      5,734         1,514          -       17,395    24,915 
  Dividends                                -          -             -          -            -         - 
  Profit and total comprehensive 
  Income for the period                    -          -             -          -          230       230 
                                   ---------  ---------  ------------  ---------  ----------- 
  Balance at 31 December 
   2020                                  272      5,734         1,514          -       17,625    25,145 
                                   ---------  ---------  ------------  ---------  -----------  -------- 
 
  Year to 30 June 2020 
  Audited 
  Balance at 1 July 2019                 273      5,734         1,513        (7)        9,122    16,635 
  Dividends                                -          -             -          -        (164)     (164) 
  Purchase and cancellation 
   of shares                             (1)          -             1                    (68)      (68) 
  Purchase of Treasury 
   shares                                  -          -             -          7          (7)         - 
  Transactions with owners               (1)          -             1          7        (239)     (232) 
  Profit and total comprehensive 
  income for the period                    -          -             -          -        8,512     8,512 
                                   ---------  ---------  ------------  ---------  ----------- 
  Balance at 30 June 
   2020                                  272      5,734         1,514          -       17,395    24,915 
                                   ---------  ---------  ------------  ---------  -----------  -------- 
 
 
 Company Statement of Changes in Equity 
 As at 31 December 2020 
 
                                                  Share       Capital 
                                       Share    premium    redemption   Treasury    Retained     Total 
                                     capital    account       reserve     Shares    earnings    Equity 
                                     GBP'000    GBP'000       GBP'000    GBP'000     GBP'000   GBP'000 
 
  Period to 31 December 
   2019 
  Unaudited 
  Balance at 1 July 2019                 273      5,734         1,513        (7)       5,587    13,100 
  Dividends                                -          -             -                      -         - 
  Loss and total comprehensive 
  loss for the period                      -          -             -          -       (283)     (283) 
                                   ---------  ---------  ------------  ---------  ---------- 
  Balance at 31 December 
   2019                                  273      5,734         1,513        (7)       5,304    12,817 
                                   ---------  ---------  ------------  ---------  ----------  -------- 
 
  Period to 31 December 
   2020 
  Unaudited 
  Balance at 1 July 2020                 272      5,734         1,514          -       5,167    12,687 
  Dividends                                -          -             -                      -         - 
  Profit and total comprehensive 
  income for the period                    -          -             -          -         256       256 
                                   ---------  ---------  ------------  ---------  ---------- 
  Balance at 31 December 
   2020                                  272      5,734         1,514          -       5,423    12,943 
                                   ---------  ---------  ------------  ---------  ----------  -------- 
 
  Year to 30 June 2020 
  Audited 
  Balance at 1 July 2019                 273      5,734         1,513        (7)       5,587    13,100 
  Dividends                                -          -             -          -       (164)     (164) 
  Purchase and cancellation 
   of shares                             (1)          -             1                   (68)      (68) 
  Purchase of Treasury 
   shares                                  -          -             -          7         (7)         - 
  Transactions with owners               (1)          -             1          7       (239)     (232) 
  Loss and total comprehensive 
  loss for the year                        -          -             -          -       (181)     (181) 
                                   ---------  ---------  ------------  ---------  ---------- 
  Balance at 30 June 
   2020                                  272      5,734         1,514          -       5,167    12,687 
                                   ---------  ---------  ------------  ---------  ----------  -------- 
 
 
 
   Consolidated Statement of Cash 
   Flows 
 6 months to 31 December 2020 
                                                        6 months            6 months         Year 
                                                           Ended               Ended        Ended 
 
                                                        31.12.20            31.12.19     30.06.20 
                                                         GBP'000             GBP'000      GBP'000 
                                                       Unaudited           Unaudited      Audited 
  Cash from operating activities 
  Operating profit from 
  continuing operations                                      223               9,819        9,848 
  Depreciation of property, 
   plant 
  and equipment                                              167                  62          228 
  Amortisation of intangible 
   assets                                                     30                   -            - 
  (Profit)/loss on disposal 
   of property,                                                -            (10,203)     (10,982) 
  plant and equipment 
                                                  --------------  ------------------  ----------- 
  Operating profit/(loss) before 
   changes in 
  working capital                                            420               (322)        (906) 
 
  (Increase)/decrease in inventories                     (2,453)             (1,138)    (2,039) 
  (Increase)/decrease in trade 
   and 
  other receivables                                      (1,070)               1,355        2,899 
  Increase/(decrease) in trade 
   and 
  other payables                                           3,015             (1,616)      (1,172) 
                                                  --------------  ------------------  ----------- 
  Cash (used)/generated from 
   operations                                               (88)             (1,721)      (1,218) 
 
  Income taxes received/(paid)                                 -                   -            - 
  Net cash from operating activities                        (88)             (1,721)      (1,218) 
                                                  --------------  ------------------  ----------- 
 
  Cash flows from investing 
   activities 
  Interest received                                            7                 167           92 
  Interest paid                                                -                   -         (15) 
  Proceeds from disposal of 
   property, 
  plant and equipment                                          -              16,222       16,400 
  Purchase of property, plant 
   and 
  Equipment                                                 (85)             (3,439)      (5,370) 
  Purchase of AVM Ltd                                          -                   -      (2,135) 
                                                  --------------  ------------------  ----------- 
  Net cash from investing activities                        (78)              12,950        8,972 
                                                  --------------  ------------------  ----------- 
 
  Cash flows from financing 
   activities 
  Dividends paid to equity shareholders                        -                   -        (164) 
  Purchase of own shares for 
   cancellation                                                -                   -         (68) 
  Net cash used in financing 
   activities                                                  -                   -        (232) 
                                                  --------------  ------------------  ----------- 
 
  Net (decrease)/increase in 
   cash and 
  cash equivalents                                         (166)              11,229        7,522 
  Cash and cash equivalents 
   at 
  beginning of period                                     10,968               3,446        5,446 
                                                  --------------  ------------------  ----------- 
 
  Cash and cash equivalents at end 
   of period                                              10,802              14,675       10,968 
                                                  --------------  ------------------  ----------- 
 Company Statement of Cash Flows 
 6 months to 31 December 2020 
                                                        6 months            6 months         Year 
                                                           Ended               Ended        Ended 
                                                        31.12.20            31.12.19     30.06.20 
                                                         GBP'000             GBP'000      GBP'000 
                                                       Unaudited           Unaudited      Audited 
  Cash from operating activities 
  Operating profit/(loss) from 
  continuing operations                                      249               (393)        (198) 
  Depreciation of property, plant 
  and equipment                                               68                  62          131 
  Operating profit/(loss) before 
   changes in 
                                                  --------------  ------------------  ----------- 
  working capital                                            317               (331)         (67) 
 
  (Increase)/decrease in inventories                     (2,444)             (1,138)      (1,984) 
  (Increase)/decrease in trade 
   and 
  other receivables                                        (739)               1,518        1,983 
  Increase/(decrease) in trade 
   and 
  other payables                                           5,975               (476)      (2,703) 
                                                  --------------  ------------------  ----------- 
  Cash generated/(used) from operations                    3,109               (418)      (2,771) 
 
  Income taxes received/(paid)                                 -                   -            - 
  Net cash from operating activities                       3,109               (418)      (2,771) 
                                                  --------------  ------------------  ----------- 
 
  Cash flows from investing activities 
  Interest received                                            7                 110        17 
  Purchase of property, plant 
   and 
  Equipment                                                  (7)                   -         (87) 
  Purchase of AVM Ltd                                          -                   -      (2,135) 
  Repayment of long term loan 
   held as investment                                          -                   -        6,588 
 
  Net cash from investing activities                           -                 110        4,383 
                                                  --------------  ------------------  ----------- 
 
  Cash flows from financing activities 
  Dividends paid to equity shareholders                        -                   -        (164) 
  Purchase of own shares for cancellation                      -                   -         (68) 
  Net cash used in financing activities                        -                   -        (232) 
                                                  --------------  ------------------  ----------- 
 
  Net increase/(decrease) in cash 
   and 
  cash equivalents                                         3,109               (308)        1,380 
  Cash and cash equivalents at 
  beginning of period                                      4,700               3,320        3,320 
                                                  --------------  ------------------  ----------- 
 
  Cash and cash equivalents at end 
   of period                                               7,809               3,012        4,700 
                                                  --------------  ------------------  ----------- 
 
 

Notes to the financial statements

   1.            Corporate Information 

The financial information for the half year ended 31 December 2020 set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The auditor's report on the financial statements for the year ended 30 June 2020 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's AIM market.

   2.            Basis of preparation 

These interim consolidated financial statements are for the six months ended 31 December 2020. 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 2020.

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 2020 except for the adoption of IAS1 Presentation of Financial Statements (Revised 2007).

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 

The consolidated financial statements incorporate the financial statements of Northamber plc and entities controlled by Northamber plc. Control is achieved if all three of the following are achieved: power over the investee, exposure to variable returns for the investee, and the ability of the investor to use its power to affect those variable returns.

The results of subsidiaries are included in the consolidated statement of comprehensive income and consolidated statement of financial position.

The results of entities acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the effective date of acquisition or up to the effective date of disposal, as appropriate.

Where necessary, the accounts of the subsidiaries are adjusted to conform to the group's accounting policies. All intra-group transactions, balances, income and expenses are eliminated on consolidation.

   4.            Segmental Reporting 

Although the sales of the group are predominantly to the UK there are sales to other countries and the following schedule sets out the split of the sales for the period. Revenue is attributable to individual countries based on the location of the customer. There are no non current assets outside the UK.

 
                                UK       Other      Total 
 
                              GBP'000   GBP'000    GBP'000 
 6 months to December 2020 
 Total Segment revenue         29,292       387       29,679 
 
 Year to 30 June 2020 
 Total Segment revenue         52,391       444       52,835 
 

No customer accounted for more than 10% of the Group's revenue during the period.

   5.            Taxation 

No tax charge has been provided in the interim consolidated financial statements due to the availability of carried forward losses.

   6.            Earnings per Share 

The calculation of earnings per share is based on the Profit after tax for the six months to 31 December 2020 of GBP230,000 (2019:8,343,000) and a weighted average of 27,231,586 (2019: 27,356,586) ordinary shares in issue.

   7.            Risks and Uncertainties 

The principal risks and uncertainties affecting the business activities of the group are detailed in the strategic report which can be found on pages 10 to 12 of the Annual Report and Accounts for the year ended 30 June 2020 (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:-

   --    Market 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

   --    Brexit risk 
   --    Covid-19 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.

   9.            Related Party Transactions 

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

During the six months period, the company paid GBP150,000 (2019: GBP12,925) rent to Anitass Limited, a wholly owned subsidiary. At 31 December 2020 Northamber plc owed Anitass Ltd GBP6,325,000 (2019:GBP4,510,000).

   10.          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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR TBMPTMTIBBLB

(END) Dow Jones Newswires

February 12, 2021 02:00 ET (07:00 GMT)

1 Year Northamber Chart

1 Year Northamber Chart

1 Month Northamber Chart

1 Month Northamber Chart
ADVFN Advertorial
Your Recent History
LSE
NAR
Northamber
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20210412 04:21:51