Northamber Regulatory News (NAR)

14 Nov 2008 15:17



Northamber Plc

Interim Management Statement - 1st Quarter to 30 September 2008

In the preliminary statement of the results for the year to 30 June 2008, the Chairman, David Phillips, indicated that the current year had a lack-lustre start. In terms of turnover that prediction was correct and was significantly lower when compared with the same period in the previous year. With such very high levels of uncertainty in the marketplace the reasons are already very well known. The swift erosion in Sterling's exchange rate adding price uncertainty and the constraints arising from the lack of liquidity in all sectors of business further contributed to the downturn.

Following our established and deliberate policy of seeking higher quality returns rather than turnover for its own the sake, gross margins, as a percentage of turnover, for the first quarter increased over the comparative period last year. The result was that Gross Profit, although lower in total than for the comparative period last year, was nevertheless at an improved level showing an 11% increase from 6.4% to 7.1% in gross percentage margins.

The fall in turnover necessitated a reduction in the workforce during the period but directly consequential cost was incurred in the form of redundancy payments. Despite these one-off costs, our strict cost control meant that we were able to further reduce overhead costs compared with those in the comparative period last year. 

The unaudited consolidated results for the first quarter showed a relatively small loss compared with a minimal profit for the first quarter last year.

The strength of our balance sheet and infrastructure, including our cash reserves standing at £11 million at the quarter end, and our demonstrated ability to maximise opportunities and contain costs, should provide that we are in a good position to benefit from any positive change in circumstances and weather the situation in the meantime.

For further information, contact:

Northamber Plc David Phillips 020 8296 7000

Charles Stanley Securities Philip Davies 020 7149 6000