Veteran distie Northamber issued a steady-as-she-goes trading statement today as it reported a turnaround profit for the six months to December 31.

The firm pulled in revenues of £67.7m, a six per cent rise, to deliver pre-tax profits of £151,000 compared to last year's £41,000 loss.

However, the competitive market meant gross margins were down 0.6 per cent, and it said there were a few product areas "we will of necessity now be keeping under very close scrutiny".

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

Looking ahead, it said it would continue with its efforts to "regrow the company".

At the same time, it said: "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." ®