Northamber Regulatory News (NAR)

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 £1.5 million compared with £13.1 million a year ago and £13.5 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 £900,000 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 £1.3 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 £14.6 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: 020 8296 7000

Charles Stanley Securities

Russell Cook / Jen Boorer Tel: 020 7149 6000