TIDMNAR
RNS Number : 2709G
Northamber PLC
29 March 2022
Northamber PLC
("Northamber" or the "Company" or the "Group")
Interim Report for the Six months to 31 December 2021
Chairman's Statement
Results
We are pleased to share that we have continued to grow revenue
year on year by 8.8% from GBP29.7m to GBP32.3m whilst maintaining
gross margins at 12.9% (12.8% prior year) despite challenging and
very dynamic market conditions. This served to generate an increase
in Gross Margins of GBP0.35m year on year and reflected our
continued focus on evolving our product mix towards higher margin,
more technical products through Northamber and AVM.
Previously discussed lockdown challenges eased but still
impacted some performance in some of our strategic business units
and our subsidiary AVM, as Covid easing still impacted some site
access for higher end projects and the rental market, but we are
hopeful of improved performance as these restrictions continue to
ease.
Distribution costs increased significantly however as we
continued to invest in developing the team for our significant
growth ambitions; we were also affected by significant increases
year on year on carriage costs (our biggest non-payroll cost).
Unfortunately the increase in distribution and administration
costs outweighed the margin growth and resulted in a reduction of
EBITDA year on year to GBP64K and an operating loss for the half of
GBP0.1m versus a profit of GBP0.2m last year. We feel strongly,
however, that to drive significant long term profitable growth it
is important that we continue to invest for the future. We
regularly review these investments and all costs to ensure we are
generating value.
Financial position
Stock levels are higher than last year at GBP11.2 million
against GBP8.4 million at 31 December 2020 as we continued to seek
to profitably support our partners by maintaining sufficient stock
in country during the uncertainty of chip shortages together with
continued impact of Brexit and COVID on supply chains.
The investment in inventory meant that cash reserves fell from
GBP7.4 million at 30 June 2021 to GBP4.7 million. With Fixed Assets
at book value at GBP7.0 million, including three unencumbered
freehold properties, the Group's overall financial position is very
sound.
Net Assets at 91.7p per share are considerably in excess of the
average price of the ordinary shares throughout the period.
Dividend
As in previous years, your Board has had regard to the strength
of our debt free, tangible asset strong balance sheet and is
proposing the interim dividend be 0.3p, at a total cost of
GBP81,695. The dividend will be paid on 28 April 2022 to
shareholders on the register as at 8 April 2022.
Staff
Our staff remain a key asset for the business and an area we
continue to invest in. The team has continued to work hard to
support our partners and each other. Our plans remain to continue
to invest in our evolving business model by continuing to invest in
building out the best team in the market to achieve our business
evolution.
Outlook
In keeping with prior outlooks that we shared, we remain
cautiously optimistic that the investments we have made in
supporting our partners will allow us to continue to drive growth
of strategic business units as some of these investments returns
have been hampered by the impact of COVID and supply chain issues.
We necessarily remain cautious due to the economic uncertainty,
Brexit, the potential further impact of COVID and supply chain
pressures 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.
The strength of our balance sheet allows us to continue to do
what is best for the business strategically and we continue to
review organic and non-organic opportunities for growth which meet
our strict criteria and add value for our shareholders.
C.M. Thompson
Chairman
29 March 2021
Contacts:
Northamber PLC Tel: +44 (0) 208 744
Colin Thompson, Chairman 8200
investor_relations@northamber.com
Singer Capital Markets (Nominated Tel: +44 (0) 207 496
Adviser and Sole Broker) 3000
Philip Davies (Corporate Finance)
Alex Bond (Corporate Finance)
Consolidated Statement of Comprehensive Income
6 months to 31 December 2021
6 months 6 months Year
Ended Ended Ended
31.12.21 31.12.20 30.06.21
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
Revenue 32,276 29,679 60,009
Cost of sales (28,123) (25,878) (52,200)
---------- ----------- ---------
Gross Profit 4,153 3,801 7,809
Distribution cost (2,670) (2,284) (4,595)
Administrative costs (1,599) (1,294) (2,837)
(Loss)/Profit from operations (116) 223 377
Finance income - 7 8
(Loss)/Profit before Tax (116) 230 385
Tax charge - - (48)
---------- ----------- ---------
(Loss)/Profit and total
comprehensive
Income for the period (116) 230 337
---------- ----------- ---------
Basic and diluted profit
per ordinary share (0.43p) 0.84p 1.24p
Consolidated Statement of Financial Position
As At 31 December 2021
6 months 6 months Year Ended
Ended 31.12.21 Ended 30.06.21
31.12.20
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
Non -current assets
Property, plant and equipment 7,004 7,102 7,079
Goodwill and intangible assets 1,336 1,391 1,365
---------------- ------------ ----------------
8,340 8,493 8,444
---------------- ------------ ----------------
Current assets
Inventories 11,190 8,401 8,468
Trade and other receivables 9,639 8,821 10,753
Cash and cash equivalents 4,737 10,802 7,449
25,566 28,024 26,670
---------------- ------------ ----------------
Total assets 33,906 32.439 35,114
================ ============ ================
Current liabilities
Trade and other payables (8,885) (11,372) (9,866)
Corporation tax payable (48) - (159)
---------------- ------------ ----------------
Total liabilities (8,933) (11,372) (10,025)
---------------- ------------ ----------------
Net assets 24,973 25,145 25,089
================ ============ ================
Equity
Share capital 272 273 272
Share premium account 5,734 5,734 5,734
Capital redemption reserve 1,514 1,514 1,514
Retained earnings 17,453 17,625 17,569
---------------- ------------ ----------------
Equity shareholders' funds attributable
to the owners of the parent 24,973 25,145 25,089
================ ============ ================
Consolidated Statement of Changes
in Equity
As at 31 December 2021
Share Capital
Share premium redemption Treasury Retained Total
capital account reserve Shares earnings Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Period to 31 December
2020
Unaudited
Balance at 1 July 2020 273 5,734 1,514 - 17,395 24,915
Dividends - - - - - -
Profit and total comprehensive
income for the period - - - - 230 230
--------- --------- ------------ --------- ----------
Balance at 31 December
2020 273 5,734 1,514 - 17,625 25,145
--------- --------- ------------ --------- ---------- --------
Period to 31 December
2021
Unaudited
Balance at 1 July 2021 272 5,734 1,514 - 17,569 25,089
Dividends - - - - - -
Profit and total comprehensive
Income for the period - - - - (116) (116)
--------- --------- ------------ --------- ----------
Balance at 31 December
2021 272 5,734 1,514 - 17,453 24,973
--------- --------- ------------ --------- ---------- --------
Year to 30 June 2021
Audited
Balance at 1 July 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 period - - - - 337 337
--------- --------- ------------ --------- ----------
Balance at 30 June
2021 272 5,734 1,514 - 17,569 25,089
--------- --------- ------------ --------- ---------- --------
Consolidated Statement of Cash
Flows
6 months to 31 December 2021
6 months 6 months Year
Ended Ended Ended
31.12.21 31.12.20 30.06.21
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
Cash from operating activities
Operating (loss)/profit from
continuing operations (116) 223 337
Depreciation of property,
plant
and equipment 151 167 350
Amortisation of intangible
assets 28 30 56
Profit on disposal of property, - - (13)
plant and equipment
-------------- ------------- -----------
Operating profit/(loss) before
changes in
working capital 63 420 770
Increase in inventories (2,722) (2,453) (2,520)
Decrease/(increase) in trade
and
other receivables 1,114 (1,070) (3.003)
(Decrease)/increase in trade
and
other payables (981) 3,015 2,923
-------------- ------------- -----------
Cash (used)/generated from
operations (2,526) (88) (1,830)
Income taxes paid (111) - (1,302)
Net cash from operating activities (2,637) (88) (3,132)
-------------- ------------- -----------
Cash flows from investing
activities
Interest received - 7 8
Proceeds from disposal of
property,
plant and equipment - - 17
Purchase of property, plant
and
Equipment (75) (85) (249)
Net cash from investing activities (75) (78) (224)
-------------- ------------- -----------
Cash flows from financing
activities
Dividends paid to equity shareholders - - (163)
Net cash used in financing
activities - - (163)
-------------- ------------- -----------
Net decrease in cash and
cash equivalents (2,712) (166) (3,519)
Cash and cash equivalents
at
beginning of period 7,449 10,968 10,968
-------------- ------------- -----------
Cash and cash equivalents at end
of period 4,737 10,802 7,449
-------------- ------------- -----------
Notes to the financial statements
1. Corporate Information
The financial information for the half year ended 31 December
2021 set out in this interim report does not constitute statutory
accounts as defined in Section 434 of the Companies Act 2006. The
auditor's report on the financial statements for the year ended 30
June 2021 was unqualified and did not contain statements under
Sections 498(2) and 498(3) of the Companies Act 2006. The interim
results are unaudited. Northamber Plc is a public limited company
incorporated and domiciled in England and Wales. The company's
shares are publicly traded on the London Stock Exchange's AIM
market.
2. Basis of preparation
These interim consolidated financial statements are for the six
months ended 31 December 2021. They have been prepared in
accordance with IAS34 Interim Financial Reporting. They do not
include all the information required for full annual financial
statements, and should be read in conjunction with the consolidated
financial statements of the group for the year ended 30 June
2021.
These interim consolidated financial statements (the interim
financial statements) have been prepared in accordance with
accounting policies adopted in the last annual financial statements
for the year to 30 June 2021 except for the adoption of IAS1
Presentation of Financial Statements (Revised 2007).
The adoption of IAS1 (Revised 2007) does not affect the
financial position or profits of the group, but gives rise to
additional disclosures. The measurement and recognition of the
group's assets, liabilities, income and expenses is unchanged. A
separate 'Statement of changes in equity' is now presented.
The accounting policies have been applied consistently
throughout the group for the purposes of preparation of these
interim consolidated financial statements.
3. Basis of Consolidation
The consolidated financial statements incorporate the financial
statements of Northamber plc and entities controlled by Northamber
plc. Control is achieved if all three of the following are
achieved: power over the investee, exposure to variable returns for
the investee, and the ability of the investor to use its power to
affect those variable returns.
The results of subsidiaries are included in the consolidated
statement of comprehensive income and consolidated statement of
financial position.
The results of entities acquired or disposed of during the year
are included in the consolidated statement of comprehensive income
from the effective date of acquisition or up to the effective date
of disposal, as appropriate.
Where necessary, the accounts of the subsidiaries are adjusted
to conform to the group's accounting policies. All intra-group
transactions, balances, income and expenses are eliminated on
consolidation.
4. Segmental Reporting
Although the sales of the group are predominantly to the UK
there are sales to other countries and the following schedule sets
out the split of the sales for the period. Revenue is attributable
to individual countries based on the location of the customer.
There are no non current assets outside the UK.
UK Other Total
GBP'000 GBP'000 GBP'000
6 months to December 2021
Total Segment revenue 31,944 332 32,276
Year to 30 June 2021
Total Segment revenue 59,137 872 60,009
No customer accounted for more than 10% of the Group's revenue
during the period.
5. Taxation
No tax charge has been provided in the interim consolidated
financial statements due to the availability of carried forward
losses.
6. Earnings per Share
The calculation of earnings per share is based on the Loss after
tax for the six months to 31 December 2021 of GBP116,000 (2020:
Profit GBP230,000) and a weighted average of 27,231,586 (2020:
27,231,586) ordinary shares in issue.
7. Risks and Uncertainties
The principal risks and uncertainties affecting the business
activities of the group are detailed in the strategic report which
can be found on pages 10 to 12 of the Annual Report and Accounts
for the year ended 30 June 2021 (the Annual Report). A copy of the
Annual Report is available on the company's web site at
www.northamber.com.
The risks affecting the business remain the same as in the
Annual Report. In summary these include:-
-- Market risk particularly those relating to the suppliers of products to the group
-- Financial risks including exchange rate risk, liquidity risk,
interest rate risk and credit risk
-- Brexit risk
-- Covid-19 risk
In the opinion of the directors, these will remain the principal
risks for the remainder of the year, however, the directors have
reviewed the company's risk analysis and are of the opinion that
steps have been taken to minimise the potential impact of such
risks.
9. Related Party Transactions
Mr A M Phillips is the ultimate controlling party of the
Company.
During the six months period, the company paid GBP150,000 (2020:
GBP150,000) rent to Anitass Limited, a wholly owned subsidiary. At
31 December 2021 Northamber plc owed Anitass Ltd GBP7,194,000
(2020: GBP6,325,000).
10. Directors' Confirmation
The Directors confirm that to the best of their knowledge these
condensed consolidated half year financial statements have been
prepared in accordance with IAS 34 and that the interim management
report herein includes a fair review of the information required by
DTR 4.2.7R, an indication of important events during the first 6
months and descriptions of principal risks and uncertainties for
the remaining six months of the year, and DTR 4.2.8R the disclosure
of related party transactions and changes therein.
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR JPMJTMTJTBAT
(END) Dow Jones Newswires
March 29, 2022 02:00 ET (06:00 GMT)
Northamber (LSE:NAR)
Gráfico Histórico do Ativo
De Dez 2024 até Jan 2025
Northamber (LSE:NAR)
Gráfico Histórico do Ativo
De Jan 2024 até Jan 2025
