Northamber Regulatory News (NAR)

16 Feb 2005 07:00

Northamber PLC16 February 2005 NORTHAMBER PLC16 FEBRUARY 2005 Northamber PLC Interim Report & Accounts (Unaudited) For Six Months Ended 31 December 2004 Chairman's Statement Results The Board is pleased to announce a 106% increase in pre-tax profits for thefirst half of £1.36 million (2003: £659,000) on sales that are 8.3% ahead at£124.5 million, and this reflects the change in emphasis over recent yearstowards core operations. The first half performance is even more encouraging considering the unabatedprice erosion on many of our volume product ranges during the period. Theseresults also reflect the necessary ongoing focus on overheads, with a further5.6% reduction compared with the 10% reduction we reported a year ago. Over the period, we continued to maintain primary positions within the UKdistribution models of our key suppliers, against a background of the ongoingand overly competitive nature of this sector. Whilst we are now tasked withachieving more commercially viable returns on some of our activities, on apositive note it helps support our view that we are strengthening Northamber'smarket share within its chosen sectors. Tangible returns commensurate with thenecessary activities and associated costs within major brand activities,continues to prove challenging however. Earnings per share for the year benefited with an increase to 2.82p from the1.43p reported last year, whilst net assets per share rose to 100.6p from 100p. At the end of 2004, the cash balance was £4.1 million (2003: £5.2 million) ;stemming from the increase in debtors and stock levels; the Group continues toremain debt free. The Balance Sheet During the period we purchased and cancelled 92,900 ordinary shares at a cost of£83,532. Our balance sheet remains very strong with no debt and £4.1m of cashat 31 December 2004. Despite a small decrease in total net assets but withfewer shares outstanding, net asset value per share increased to 100.6p. Thedaily focus on the key business ratios remains at the forefront of ourmanagement controls. Dividend I have previously drawn attention to dividend policy reflecting both tradingresults and an ongoing healthy balance sheet. With these results, your Boardfeels it appropriate to increase the interim dividend to 2p from the 1.1p paidlast year The interim dividend will be payable on 6 May 2005 to members on the Register asat 15 April 2005. The Board As announced on 28 January 2005, Mike Ayrton, having retired to Spain, decidedto also resign his role as a non-executive director of Northamber. We wish toextend our very best wishes and most especially thank him for his valuedcontribution. OUTLOOK Whilst January proved weak across the entire sector including ourselves, happilyFebruary appears to be returning to expected levels of activity. Subject to the economy as a whole, your Board remains confident in the outcomefor the full year. D.M. Phillips Chairman 16 February 2005 CONSOLIDATED UNAUDITED PROFIT AND LOSS ACCOUNTFor the six months ended 31 December 2004 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2004 2003 2004 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Turnover 124,504 114,920 232,809Cost of sales (114,776) (105,417) (213,862) ------------------- ------------------- -------------------Gross profit 9,728 9,503 18,947 Net operating expenses (8,425) (8,943) (17,339) ------------------- ------------------- -------------------Operating profit 1,303 560 1,608 Interest receivable 57 100 209Interest payable (1) (1) (5) ------------------- ------------------- -------------------Profit on ordinaryactivities before taxation 1,359 659 1,812 Taxation charge (476) (198) (647) ------------------- ------------------- -------------------Profit on ordinaryactivities after taxation 883 461 1,165 Equity dividends (624) (344) (1,261) ------------------- ------------------- -------------------Retained profit/(loss)for period 259 117 (96) =========== =========== =========== Earnings per ordinary share 2.82p 1.43p 3.67p ------------------- ------------------- ------------------- All operations are continuing There is no difference between the profit on ordinary activities before taxationand the retained profit/(loss) for the period stated above, and the historicalcost equivalents. CONSOLIDATED UNAUDITED INTERIM BALANCE SHEETAt 31 December 2004 At 31 December At 31 December At 30 June 2004 2003 2004 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Fixed assetsTangible assets 4,213 5,239 4,541Investments 2,487 2,836 2,837 -------------------- -------------------- -------------------- 6,700 8,075 7,378 -------------------- -------------------- --------------------Current assetsStocks 23,741 21,390 17,363Debtors 33,354 27,128 26,887Cash at bank and in hand 4,113 5,190 9,150 -------------------- -------------------- -------------------- 61,208 53,708 53,400Current liabilitiesCreditors - amounts falling due (35,843) (29,623) (28,888)within one year -------------------- -------------------- --------------------Net current assets 25,365 24,085 24,512 -------------------- -------------------- --------------------Total assets less current liabilities 32,065 32,160 31,890 Deferred Taxation (783) (859) (783) -------------------- -------------------- --------------------Net Assets 31,282 31,301 31,107 =========== =========== =========== Capital and reservesCalled up share capital 1,561 1,565 1,566Share premium account 5,734 5,724 5,734Capital redemption reserve 226 220 221Profit and loss account 23,761 23,792 23,586 -------------------- -------------------- --------------------Equity Shareholders' Funds 31,282 31,301 31,107 =========== =========== =========== Net assets per share 100.6p 100.0p 99.3p CONSOLIDATED CASH FLOW STATEMENTFor the six months ended 31 December 2004 6 months ended 6 months ended 12 months ended 31 December 31 December 30 June 2004 2003 2004 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Cash (outflow)/inflow from continuingoperating activities (4,994) (1,171) 3,669 Returns on investments and servicing offinanceInterest received 59 100 209Interest paid (1) (1) (5)Income from fixed asset investments 97 99 220 ------------------ ------------------ ------------------Net cash inflow from returns on investmentsand servicing of finance 155 198 424 TaxationUK corporation tax paid (395) (202) (529) Capital expenditure and financial investmentPurchase of tangible fixed assets (89) (169) (314)Sale of tangible fixed assets 10 31 365Sale of other investments 360 0 0 ------------------ ------------------ ------------------Net cash inflow/(outflow) from capitalexpenditure and financial investment 281 (138) 51 Equity dividends paid 0 0 (970) ------------------ ------------------ ------------------Cash (outflow)/inflow before financing (4,953) (1,313) 2,645 ------------------ ------------------ ------------------ FinancingPurchase of shares (84) (662) (672)issue of shares 12 ------------------ ------------------ ------------------Net cash outflow from financing (84) (662) (660) ------------------ ------------------ ------------------Decrease in cash in the period (5,037) (1,975) 1,985 ------------------ ------------------ ------------------ NOTES 1. The Directors have declared an interim net dividend of 2.0p per ordinary share (2003 - 1.1p) which will be paid on 6 May 2005 to shareholders on the register on 15 April 2005. The ex-dividend date for the shares will be 13 April 2005. 2. The tax charge for the six months ended 31 December 2004 has been based on the expected tax rate for the year of 35%. 3. The calculation of earnings per share is based on profits of £883,000 (2003 -£461,000) on the weighted average number of 31,293,626 (2003 - 32,243,565) ordinary shares in issue. 4. The calculation of net assets per ordinary share is based on 31,223,100 (2003 - 31,299,000) ordinary shares being the number of shares in issue at the end of the period. 5. The interim financial statements for the six months ended 31 December 2004 are unaudited. They have been prepared on the basis of accounting policies consistent with those adopted for the year ended 30 June 2004. The results for the year ended 30 June 2004 have been summarised for comparative purposes within the meaning of Section 240 of the Companies Act. The full financial statements for the year ended 30 June 2004 were reported on by the auditors without qualifications or statements under Section 237(2) or (3) of the Companies Act 1985 and have been delivered to the Registrar of Companies. 6. A copy of the Interim Statement is being sent to all shareholders and is available to the public from the Company's trading office at Namber House, 23 Davis Road, Chessington, Surrey, KT9 1HS. 7. These interim results were approved by the Board of Directors on 16 February 2005. This information is provided by RNS The company news service from the London Stock Exchange