TIDMNAR
RNS Number : 8909S
Northamber PLC
19 November 2021
19 November 2021
Northamber PLC
(the "Company" or the "Group")
Preliminary Results for the year ended 30 June 2021
Chairman's Statement
Results
Building on a profitable first half of the year, we are very
pleased to be able to report an operating profit and strong growth
for the full financial year to 30 June 2021. This was driven by
significant growth in revenues and gross margins despite
challenging market conditions.
As mentioned in prior statements regarding our early decision to
stay true to our values and prioritise our team and partners by
avoiding any furlough or COVID related cuts, we also maintained our
focus on mid-long term over short term and invested further in
growing our teams, all of which has proven fruitful.
Revenues increased 13.57% for the year from GBP52.83 million to
GBP60.01 million for the comparative period last year. GBP3.32
million of this growth was due to the inclusion of Audio Visual
Material Limited "AVM" for a full year rather than 5 months in the
comparative period with the remaining GBP3.86 million from organic
growth. More significantly, this revenue growth was combined with a
significant increase in Gross Margin, the cumulative effect of
which was to increase Gross Profit by GBP2.33 million, from GBP5.48
million to GBP7.81 million, an increase of 42.52%. The improvement
in Gross Margin resulted from our evolving product mix towards
higher margin, more technical products through Northamber and
AVM.
Previously discussed lockdown challenges continued to impact
performance in some of our strategic higher margin business units
and our subsidiary AVM. Site restrictions eased through the year
however, and we saw improved trading in these areas. As such we are
hopeful performance will continue to improve here in the current
financial trading year.
Whilst we were very pleased with the double digit revenue and
gross profit growth, we maintained our focus on investing for the
future. This investment is focused on developing the business for
the mid-long term whilst driving efficiency and cost
management.
Our strategy of focusing on adding value to our partners by
building an industry leading, knowledgeable team translated into an
increased headcount for the period from 88 to 102; this combined
with the impact of AVM being included for 12 months rather than for
5 months in the prior year, served to increase our distribution
costs by 27.6% from GBP3.6 million to GBP4.6 million.
Administrative costs increased by 8.8% as we continued to
proactively manage non-essential costs from GBP2.61 million to
GBP2.84 million.
The above resulted in an operating profit of GBP0.38 million, an
increase of GBP1.12 million from the adjusted operating profit for
the prior year.
Financial position
Our balance sheet remains strong with GBP6.2 million of
unencumbered freehold properties at depreciated cost together with
cash balances of GBP7.45 million (2020: GBP10.97 million).
Stock levels are higher than last year at GBP8.5 million against
GBP5.9 million, as we continued to seek to profitably support our
partners by maintaining sufficient stock during the uncertainty of
logistics due to Covid-19 and BREXIT as supply chains were under
pressure. We see our flexibility on local stock levels as a key
driver of our strong future with our partners.
Net Assets at 92.1p per share (2020: 91.5p per share) are
considerably in excess of the average price of the Company's
ordinary shares throughout the period.
Board appointments
In April 2021, Antony Lee joined the Board as Finance director
and Riccardo Reggio also joined as a non-executive director.
Dividend
The Board is pleased to recommend (subject to shareholder
approval at the company annual general meeting on 21 December 2021)
a proposed final dividend of 0.4p (2020:0.3p).
This reflects the Board's confidence in the group's financial
position and the strength of the group's debt free tangible asset
strong balance sheet.
The final dividend will be paid on 19 January 2022 to the
shareholders on the register on 17 December 2021.
Staff
We remain extremely grateful and proud of our team who have been
a recognized differentiator in our business for decades. We have
been working hard to keep our proactive, passionate and customer
centric culture as we scale the team and have been pleased to see
how well new team members have integrated into the business. We
remain incredibly grateful to our team and will continue to invest
in our staff to support our evolving business model as we continue
to focus on value add. The quality of our team is evident in
delivering these growth figures despite significant changes in
working environment, significant recruitment to the team and
unpredictable market forces.
Outlook
The addition of new Supplier partners during the year supports
our mid-long term optimism.
We will continue to utilise the strength of our balance sheet to
do what is best for the business strategically whether that is
tactical actions such as increasing our stock levels to pre-empt
shortages or continuing to review organic and non-organic
opportunities for growth which meet our strict criteria and add
value for our shareholders.
Whilst there are a number of factors such as Brexit, the
continued impact of shipping and product constraints, together with
the future uncertainty of Covid and any further lockdowns, we
remain cautiously optimistic that the investments we have made in
our team and in supporting our partners will allow us to continue
our growth over the coming years.
We necessarily remain cautious due to the factors outside our
control but feel strongly that our continued focus on strategic
higher margin value categories provides a solid road map for the
future with profitable growth opportunities and the ability to
unlock long term value for shareholders.
C.M. Thompson
Chairman
18 November 2021
Contacts:
Northamber PLC Tel: +44 (0) 208 744 investor_relations@northamber.com
8200
Colin Thompson, Chairman
N+1 Singer (Nominated Adviser and Tel: +44 (0) 207 496
Sole Broker) 3000
Philip Davies
Alex Bond
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2021
2021 2020
Notes GBP'000 GBP'000
Revenue 2 60,009 52,835
Cost of sales (52,200) (47,357)
Gross Profit 7,809 5,478
Distribution costs (4,595) (3,601)
Administrative costs (2,837) (2,613)
Administrative costs - Exceptional
acquisition costs - (220)
Other income - Exceptional gain
on disposal of property - 10,804
----------- -----------
Operating profit 377 9,848
Adjusted Operating Profit 377 (736)
Exceptional items - 10,584
----------- -----------
Operating profit 377 9,848
------------------------------------ ------ ----------- -----------
Finance income 8 92
Finance cost - (15)
----------- -----------
Profit before tax 385 9,925
Tax charge (48) (1,413)
Profit for the year and total
comprehensive income attributable
to the owners 337 8,512
=========== ===========
Basic and diluted profit per
ordinary share 3 1.24p 31.16p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2021
2021 2020
GBP'000 GBP'000
Non current assets
Property, plant and equipment 7,079 7,184
Goodwill and intangible assets 1,365 1,421
----------- -----------
8,444 8,605
----------- -----------
Current assets
Inventories 8,468 5,948
Trade and other receivables 10,753 7,750
Cash and cash equivalents 7,449 10,968
26,670 24,666
----------- -----------
Total assets 35,114 33,271
=========== ===========
Current liabilities
Trade and other payables (9,866) (6,943)
Corporation tax payable (159) (1,413)
----------- -----------
Total liabilities (10,025) (8,356)
----------- -----------
Net assets 25,089 24,915
=========== ===========
Equity
Share capital 272 272
Share premium account 5,734 5,734
Capital redemption reserve 1,514 1,514
Retained earnings 17,569 17,395
----------- -----------
Equity shareholders' funds attributable
to the owners of the parent 25,089 24,915
=========== ===========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
At 30 June 2021
Share Share Capital Redemption Treasury Retained Total
Capital Premium Reserve shares Earnings Equity
Account
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 July 2019 273 5,734 1,513 (7) 9,122 16,635
Dividends - - - - (164) (164)
Purchase and cancellation of shares (1) 1 - (68) (68)
Purchase of treasury shares - 7 (7) -
-------- -------- -------- --------- --------- --------
Transactions with owners (1) - 1 7 (239) (232)
Profit and total comprehensive
income for the year - - - - 8,512 8512
Balance at 30 June 2020 272 5,734 1,514 - 17,395 24,915
Dividends - - - - (163) (163)
Transactions with owners - - - - (163) (163)
Profit and total comprehensive
income for the year - - - - 337 337
Balance at 30 June 2021 272 5,734 1,514 - 17,569 25,089
======== ======== ======== ========= ========= ========
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2021
2021 2020
GBP'000 GBP'000
Cash flows from operating activities
Operating profit from continuing operations 377 9,848
Depreciation of property, plant and equipment 350 228
Amortisation of intangible assets 56 -
Profit on disposal of property, plant
and equipment (13) (10,982)
------------------ ----------------
Operating Profit/ (loss) before changes
in working capital 770 (906)
(Increase) in inventories (2,520) (2,039)
(Increase)/decrease in trade
and other receivables (3,003) 2,899
Increase/(decrease) in trade
and other payables 2,923 (1,172)
Cash used in operations (1,830) (1,218)
Income taxes paid (1,302) -
Net cash used in operating activities (3,132) (1,218)
------------------ ----------------
Cash flows from investing activities
Interest received 8 92
Proceeds from disposal of property 17 16,400
Purchase of property, plant and
equipment (249) (5,370)
Purchase of AVM Limited - (2,135)
Net cash (used in)/generated
from investing activities (224) 8,987
Cash flows from financing activities
Dividends paid to equity shareholders (163) (164)
Interest paid - (15)
Purchase of cancellation of shares - (68)
Net cash used in financing activities (163) (247)
------------------ ----------------
Net (decrease)/increase in cash
and cash equivalents (3,519) 7,522
Cash and cash equivalents at
beginning of year 10,968 3.446
Cash and cash equivalents at
end of year 7,449 10,968
------------------ ----------------
Notes
1. Financial information
This financial information is consistent with the consolidated
financial statements of the group for the year ended 30 June 2021.
The group's consolidated financial statements have been prepared in
accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006.
The financial information set out above does not constitute the
group's statutory accounts for the years ended 30 June 2020 or 30
June 2021, but is derived from those accounts. The statutory
accounts for the year ended 30 June 2020 have been delivered to the
Registrar of Companies and those for 2021 will be delivered
following the group's annual general meeting. The auditor's report
on the 2021 accounts will be unqualified, will not include
references to any matters to which the auditors drew attention by
way of emphasis without qualifying their reports, and will 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 attributed to
individual countries based on the location of the customer. There
are no non-current assets outside the UK.
Revenues comprise: 2020 2020
GBP'000 GBP'000
Revenue from contracts
with
customers - UK 59,137 52,391
-other 872 444
-------- ---------
60,009 52,835
-------- ---------
No customer accounted for more than 10% of the group's revenue
for the year.
3. Profit per ordinary share
The calculation of the basic and diluted earnings per share is
based on the following data:
2021 2020
GBP'000 GBP'000
Profit for the year attributable
to equity holders of the parent company 337 8,512
=========== ===========
2021 2020
Number of shares Number Number
Weighted average number of ordinary
shares for the purpose of basic and
diluted earnings per share 27,231,586 27,316,175
=========== ===========
4. Dividends
A final dividend of 0.4p per share will be paid on 19 January
2022 to those members on the register at close of business on 17
December 2021.
5. Notice of meeting
The annual report and accounts for the year ended 30 June 2021
will be posted to shareholders in due course and the Annual General
Meeting will be held on 21 December 2021 at the Company's warehouse
& logistics complex, Unit 3, Pagoda Park, Westmead Industrial
Estate, Westmead Drive, Swindon, SN5 7UN.
The Company's registered office is Namber House, 23 Davis Road,
Chessington, Surrey, KT9 1HS.
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END
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November 19, 2021 02:00 ET (07:00 GMT)
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