TIDMNAR
RNS Number : 3401T
Northamber PLC
14 November 2019
14 November 2019
Northamber PLC
("Northamber" or the "Company")
Preliminary Results for the year ended 30 June 2019
Chairman's Statement
I am writing in my capacity as Acting Chairman, a role I have
assumed as David Phillips is currently suffering from ill health
and it may be some time before he is fully recovered and able to
resume his role as Chairman. We have an experienced board and
strong management team upon which to rely until such time as David
returns.
This year has been dominated by the sale of the Company's
freehold warehouse facility in Weybridge, albeit that it took place
shortly after the year end and the impact is not therefore
reflected in these accounts. I will cover this in more detail later
in this statement, but I shall now turn to the year under
review.
Trading
At first glance, the headline results for the year appear
disappointing with turnover of GBP50.3 million against GBP58.1
million for the previous year, but further analysis provides an
insight into the underlying trends in the business. It is also
important to recall that we took a deliberate decision to exit
lower margin, commoditised product groups, which saw a material
reduction in turnover between the first and second half of the year
ended 30 June 2018. So, there is a steadier picture when comparing
the revenues for the second half of FY2018, with the two halves of
FY2019.
The first half of FY2019 was impacted by the previously reported
supplier contract breach. The legal case we brought against the
supplier continues, and we are still incurring legal costs.
Turnover in H2 at GBP26.1 million was GBP1.8 million higher than
for H1 and Gross Profit increased by GBP0.26 million to GBP2.3m,
with the gross margin increased from 8.4% to 8.8%.The year on year
improvement in gross margin was more pronounced, rising from 7.82%
to 8.6%.The process of expansion of the more rewarding strategic
Audio Visual & Solutions products continues and is reflected in
these figures, along with the reduction in the proportion of lower
margin products.
I believe that these figures show the strengthening trading
business we are building, with a considerable improvement and
confirms our policy of expanding profitable product ranges.
Financial Position
The sale of the Weybridge warehouse property after the period
end will of course have a very significant impact on the shape of
the balance sheet but we closed the financial year in a strong
position.
Based on the position at 30 June 2019, which excludes the
GBP16.4 million cash proceeds from the property sale, the Company
had a very strong balance sheet with a net current assets ratio of
2.2 compared with 2.4 in the previous year and cash on hand of
GBP3.4 million compared with GBP5.1 million in the previous
year.
The working capital ratios all increased this year which were
the result mainly of changes in the structure of the product range
and in the supplier/customer profiles.
At 30 June 2019 the Net Assets per share were 60.8p (2018:
62.2p), based on the Balance Sheet values including our two
unencumbered freehold properties (but before the sale of the
Weybridge property).
Sale of the Property
It is too early to report on how best to apply the proceeds of
the sale of the warehouse property; there are a number of options
open to the board on how best to utilise these funds for the
benefit of the company and the shareholders. We also need to decide
on an appropriate course of action in relation to our overall
property requirements. We shall of course be reporting the outcome
of any decision made in due course.
Dividend
Having regard to the strength of the Group's debt free tangible
asset base, the Board is proposing to pay an increased final
dividend of 0.3p per share, at a total cost of GBP82,498 which will
be paid on 17 January 2020 to shareholders on the register on 13
December 2019.
Staff
As in previous years the Board would like to express their great
appreciation for the dedication and effort produced by the staff
during the year as we continue to drive changes in strategy.
Outlook
It is our intention to continue to implement the strategy of
product and margin improvements which is showing positive results.
It remains, however, beyond our ability to control or remove those
restraints and constraints which have applied for the last few
years. These have not abated and are even more applicable in the
current climate of uncertainty.
As mentioned above, the Board will be deliberating the most
appropriate strategy to grow the business and maximise shareholder
value, whilst also balancing the longer-term requirements for
appropriate property facilities.
The future of the Company, with the resources available to it,
looks more promising despite the wider economic and political
backdrop, and I look forward to updating you on progress in due
course.
G.P. Walters
Acting Chairman
For more information please contact:
Northamber plc 020 8296 7000
Geoff Walters
Cantor Fitzgerald Europe
(Nominated Adviser & Broker) 020 7894 7000
Phil Davies / Michael Boot
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2019
2019 2018
Total Total
GBP'000 GBP'000
Revenue 50,329 58,136
Cost of sales (45,998) (53,589)
Gross Profit 4,331 4,547
Distribution costs (2,849) (2,850)
Administrative costs (2,352) (2,276)
Loss from operations (870) (579)
Investment revenue 272 90
Loss before tax (598) (489)
Tax (charge) - -
Loss for the year and total comprehensive
loss (598) (489)
============ =========
Basic and diluted loss per ordinary
share (2.17)p (1.74)p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2019
2019 2018
GBP'000 GBP'000
Non current assets
Property, plant and equipment 1,792 7,894
Current assets
Inventories 3,320 3,378
Trade and other receivables 9,492 8,145
Cash and cash equivalents 3,446 5,067
Assets classified as held for 6,019 -
sale
----------- ---------
22,277 16,590
----------- ---------
Total assets 24,069 24,484
=========== =========
Current liabilities
Trade and other payables (7,434) (6,964)
Total liabilities (7,434) (6,964)
----------- ---------
Net assets 16,635 17,520
=========== =========
Equity
Share capital 273 281
Share premium account 5,734 5,734
Capital redemption reserve 1,513 1,505
Treasury Shares (7) -
Retained earnings 9,122 10,000
----------- ---------
Equity shareholders' funds attributable
to the owners of the parent 16,635 17,520
=========== =========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June
2019
Share Share Capital Treasury shares Retained Total Equity
Capital Premium Redemption Earnings
Account Reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
July 2018 281 5,734 1,505 - 10,545 18,065
Dividends - - - - (56) (56)
Transactions
with owners - - - (56) (56)
Loss and total
comprehensive
loss for the
year - - - - (489) (489)
Balance at 30
June 2018 281 5,734 1,505 10,000 17,520
Dividends - - - - (55) (55)
Purchase and
cancellation
of shares (8) 8 - (225) (225)
Purchase of
treasury
shares - - - (7) - (7)
Transactions
with owners (8) - 8 (7) (280) (287)
Loss and total
comprehensive
loss for the
year - - - - (598) (598)
Balance at 30
June 2019 273 5,734 1,513 (7) 9,122 16,635
============ ============ ============ ---------------- ============ ================
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2019
2019 2018
GBP'000 GBP'000
Cash flows from operating activities
Operating (loss) from continuing operations (870) (579)
Depreciation of property, plant and equipment 153 188
(Profit) on disposal of property, plant - -
and equipment
------------- ---------------
Operating (loss) before changes in working
capital (717) (391)
Decrease)/(increase) in inventories 58 798
Increase/(decrease) in trade
and other receivables (1,346) 907
Increase/(decrease) in trade
and other payables 470 (1,196)
Cash (used in)/generated from
operations (1,535) 118
Income taxes paid - -
Net cash (used in)/generated
from operating activities (1,535) 118
------------- ---------------
Cash flows from investing activities
Interest received 272 90
Purchase of property, plant and
equipment (71) (57)
Proceeds from disposal of property, - -
plant and equipment
Net cash from investing activities 201 33
Cash flows from financing activities
Dividends paid to equity shareholders (55) (56)
Purchase of cancellation of shares (225) -
Purchase of treasury shares (7) -
Net cash used in financing activities (287) (56)
------------- ---------------
Net increase in cash and cash
equivalents (1,621) 95
Cash and cash equivalents at
beginning of year 5,067 4,972
Cash and cash equivalents at
end of year 3,446 5,067
------------- ---------------
Notes
1. Financial information
The results of the year ended 30 June 2019 have been prepared
using the accounting policies and methods of computation consistent
with those used in the Group's annual report for the year ended 30
June 2019. The results have also been presented and prepared in a
form consistent with that which will be adopted in the Group's
annual report for the year ended 30 June 2019 and in accordance
with the recognition and measurement requirements of the
International Reporting Standards as adopted by the European
Union.
The financial information set out above does not constitute the
group's statutory accounts for the years ended 30 June 2018 or 30
June 2019, but is derived from those accounts. The statutory
accounts for the year ended 30 June 2018 have been delivered to the
Registrar of Companies and those for 2019 will be delivered
following the group's annual general meeting. The auditors have
reported on these accounts, their reports were unqualified and did
not contain statements under s.498(2) or (3) of the Companies Act
2006. The information contained in this statement does not
constitute statutory accounts within the meaning of section 434 of
the Companies Act 2006.
2. Revenue
Although the sales of the group are predominantly to the UK
there are sales to other countries and the following table sets out
the split of the sales for the year. Revenue is attributable to
individual countries based on the location of the customer.
Revenues comprise: 2019 2018
GBP'000 GBP'000
Revenue from contracts
with
customers - UK 49,655 57,661
-other 674 475
--------- ----------
50,329 58,136
Investment revenue 272 90
--------- ----------
50,601 58,226
--------- ----------
One customer accounted for more than 10% of the group's revenue
for the year, being GBP6.4m (2018: GBP7.6m).
3. Loss per ordinary share
The calculation of the basic and diluted earnings per share is
based on the following data:
2019 2018
GBP'000 GBP'000
(Loss) for the year attributable
to equity holders of the parent company (598) (489)
=========== ===========
2019 2018
Number of shares Number Number
Weighted average number of ordinary
shares for the purpose of basic and
diluted earnings per share 27,499,434 28,158,735
=========== ===========
4. Dividends
A final dividend of 0.3p per share will be paid on 17 January
2020 to those members on the register at close of business on 13
December 2019.
5. Notice of meeting
The annual report accounts for the year ended 30 June 2019 will
be posted to shareholders in due course and the Annual General
Meeting will be held on 18 December 2019.
The Company's registered office is Namber House, 23 Davis Road,
Chessington, Surrey, KT9 1HS.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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