Northamber Regulatory News (NAR)

Northamber Plc ("the Company")

Interim Statement for the six months to 31 December 2010

Chairman's Statement

Trading

A trading slowdown plus December's weather, supported the cautious optimism expressed in November's Interim Management Statement.

Pre-tax profit for the half year to 31 December was a much improved £151,000 compared with last year's loss of £41,000. Whilst the value of our net cash was protected, interest income was once again minimal. Earnings per share of 0.39p reversed last year's loss of 0.19p, although depreciation charges reduced the NAV to 88.9p per share from 89.2p per share in December 2009.

Sales for the half year increased from last year's £63.8 million to £67.7million, an increase of just over 6%. However, competitive pressures resulted in a 0.6% reduction in the comparative gross margins and there are a few specific product areas, we will of necessity now be keeping under very close scrutiny.

Through our ongoing strict cost controls we further reduced overheads compared with the corresponding period last year.

Balance Sheet

The company continues to remain debt free. We are constantly focussed on the management of our working capital in the most effective manner possible. During the half year we achieved an improvement in stock turns, debtors days and even to our advantage, shortened our creditor days but with the associated slight reduction in net cash to £12.1 million against the £13.5 million at 31 December 2010.

The £12.1 million in net cash represents just over 47% of our Net Assets as at 31 December.

During the period the Company repurchased 50,000 ordinary shares of 1p at a cost of £28,200 for cancellation.

Dividend

In view of all the circumstances, your board has decided to pay an unchanged dividend of 0.6p per share (2009: 0.6p per share). The interim dividend will be paid on 10 May 2011 to those shareholders on the register at 15 April 2011.

Board

Northamber is pleased to be able to announce the appointment of Gordon Hamilton as senior non executive director of the company with effect from 17 December 2010. He will also chair the audit and remuneration committees of the board.

Gordon Hamilton brings to the post a vast experience in a wide range of industries and an extensive knowledge of financial matters and experience of the City. He will, we are sure, be a most valuable addition to the board.

After 30 years with Deloitte & Touche and retiring as a senior audit partner in 2006, Gordon was also the partner responsible for the audit of Northamber in the late 1990's, so already has an understanding of the business of the company.

We are indeed delighted that he has agreed to join our board and we feel most fortunate to have secured his services.

Whilst we are happy to announce Gordon's appointment, we have at the same time to announce that Tony Caplin has regrettably felt that the growing pressure of his other commitments required him to advise his resignation from the board .

Tony has not only been a long term member of the board but has also been a pillar of strength, particularly during the recent very turbulent years. His advice has always been most welcome and useful and we are sorry to lose his wisdom and guidance. We thank him for his help and assistance to the company and wish him well in the future.

Outlook

We have made reasonable progress in meeting the Board's intention to re-grow the company after avoiding the problems of recent years. That involved the tight controls evidenced by the very minimal bad debt on last year's sales of £128 million and inherent asset protection. We must not now ignore the probable effects from this latest "squeeze" on the UK economy and the consequential adverse effects on those arguably discretionary expenditure elements within our offerings.

The foretaste afforded by January's trading, confirms our view of the future remaining one of caution with the need for close and tight management. Our overall goal remains one of seeking the re-growth of profits and turnover whilst maintaining effective controls.

Lastly, I can report that moves to strengthen the management team continue apace and with satisfaction.

For further information please contact:

Northamber Plc 020 8296 7000 David Phillips

Fox-Davies 020 3463 5010 Philip Davies

Notes to the financial statements

1. Corporate Information

The financial information for the year ended 30 June 2010 set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The group's statutory financial statements for the year ended 30 June 2010 have been filed with the Registrar of Companies. The auditor's report on those financial statements 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.

2. Basis of preparation

These interim consolidated financial statements are for the six months ended 31 December 2010. 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 2010.

These interim consolidated financial statements have been prepared under the historical cost convention.

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 2010 except for the adoption of IAS1 Presentation of Financial Statements (Revised 2007), The group has only one reportable segment therefore no statement of segmental reporting is shown in these interim financial statements.

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

For the periods covered in these interim consolidated financial statements all trading has been carried out by the parent company alone. The group includes some non trading dormant subsidiaries.

All the assets and liabilities of all subsidiaries have been included in the statements of financial position.

4. Taxation

The tax charge shown in the interim consolidated financial statements is accrued on an estimated average annual effective rate of tax of 27% ( 6 months to December 2009: 28.0%)

5. Earnings per Share

The calculation of earnings per share is based on the profit after tax for the six months to 31 December 2010 of £111,000 (2009: loss £56,000) and a weighted average of 28,925,029 (2009:29,030,247) ordinary shares in issue.

6. Property, Plant and Equipment

There were no significant additions to or disposals of property, plant or equipment in the period to 31 December 2010. The reduction in the total value of property, plant and equipment was primarily due to the depreciation charge for the year.

7. Important Events

There were changes to the Board in December as indicated in the Chairman's Statement, also during the first 6 months of this year up to 31 December 2010, we have appointed several new senior managers with a view to future expansion of the business and to develop further our relationships with our vendors. With similar objectives we have also expanded our range of vendors taking on some new ones and seeking some specialist vendors to expand the range of products we offer.

This trend continues as the objective for the second half of this year.

8. Risks and Uncertainties

The principal risks and uncertainties affecting the business activities of the group are detailed in the director's report which can be found on pages 7, 8 and 19 of the Annual Report and Accounts for the year ended 30 June 2010 (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:-

Marketing 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.

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 D M Phillips is the ultimate controlling party of the Company.

During the period to 31 December 2010 the company paid £15,000 as salary and no benefits to the

company's personnel manager, Samantha Matthews, who is the wife of Mr H Matthews. In the director's opinion the payments were on an arms length basis.

10. Director's 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.

D.M. Phillips

Chairman