The Channel logo

News

By | Joe Fay 19th February 2009 10:17

Northamber: 'It would be wrong to be optimistic'

Revenues slide in first half

Northamber said it would be "wrong to be optimistic" as it weighs the chances of an upturn in the economy after the first six months of its financial year saw revenues slump 30 per cent.

The veteran distributor turned in revenues of £68m for the six months ending December 31, compared to £97m a year ago, while last year's £453,000 pre-tax profit morphed into a £304,000 loss this time around.

Despite the massive sales slump, the firm did not see that it was out of step with the market, saying, "The trend over our first half-year with turnover almost 30 per cent lower, also reflected UK sector statistics for sales of commercial hardware I.T. equipment....The general and continuing uncertainty within the economy, and the market as a whole, remains the dominant feature of our marketplace."

At the same time, it said, "Because of our financial strength and being able to offer both our suppliers and our customer's opportunities, the rate of gross margin is slightly better at 6.9 per cent than when compared with 6.5 per cent a year ago."

Northamber emphasised its policy of conserving cash and keeping a firm balance sheet. Unsurprisingly the firm decided to cut its dividend to 0.6p per share, half what it paid out last year.

Making virtue out of a necessity, it said that "With our strengths in distribution, together with what is becoming an essential re-engineering of the current model, we are well placed to evolve better trading practices with our partners in the trading cycle."

But, the firm doesn't expect the cycle to rev up anytime soon, with chairman David Phillips, concluding, "There seems little doubt that it may take some time before there is any noticeable upturn in the sector, therefore it would be wrong of me to be optimistic."®

alert Send corrections

Opinion

Chris Mellor

How long before Blue Big HQ pulls the plug on the whole thing?

Chris Mellor

Drives nails forged with Red Hat iron into VCE's coffin
Sleep Cycle iOS app screenshot

Trevor Pott

Forget big-spending globo biz: it's about the consumer... and he's desperate for a nap

Features

Windows 8.1 Update  Storeapps Taskbar
Chinese Buffet self-service
Chopping down the phone tree to scrump low-hanging fruit
An original member of the System/360 family announced in 1964, the Model 50 was the most powerful unit in the medium price range.
Big Blue's big $5bn bet adjusted, modified, reduced, back for more
Microsoft CEO Satya Nadella
Redmond needs to discover the mathematics of trust