(Alliance News) - Northamber PLC said on Tuesday raised its interim dividend as it reported a swing to profit on increased revenue.
For the six months to the end of December, the IT equipment distributor swung to a pretax profit of GBP10.0 million from a GBP353,000 loss a year prior. Revenue rose 8.4% to GBP26.3 million from GBP24.2 million.
Gross margins increased to 8.8% from 8.4% year-on-year.
The improvement in revenue and margins was attributed to growth from areas such as Audio Visual and Solutions.
Cash as at December 31 stood at GBP14.7 million, up from GBP2.9 million at the end of 2018.
Northamber proposed an interim dividend of 0.3 pence, up from the 0.1p payout a year prior, citing its strong balance sheet.
Looking ahead, Acting Chair Geoff Walters said: "Whilst we are optimistic in the long-term strategy, we remain cautious due to the economic uncertainty, Brexit and the potential impact of coronavirus on the supply chain. Our continued focus on the new higher margin value categories continues to be an area we are confident and excited about, and where we see future opportunities for organic growth."
Former chair David Phillips died in December.
The stock traded 15% higher at 67.50p each on Tuesday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Northamber (NAR)