Distie Northamber has had to cut its dividend after falling sales and margins hit profits.

The company complained that tough trading combined with pressure on prices pushed profits down to £430,000 from £2.61m last year. Revenue was down too, despite higher volume. Northamber sold £204.4m worth of kit compared to £236.3m in 2005. Margins fell half a per cent in the period.

Stock turns increased to 21 times from 16 times last year.

Northamber shares fell over seven per cent on the news. The company will pay a final dividend of 2.1p per share, down from 6 pence last year.

The company said trading had been harder than expected. It blamed a general downturn in the distribution business.

More details on Northamber's website .

Comparative results from last year have been restated because Northamber has now adoped International Financial Reporting Standards.®

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