Northamber (NAR)

Sector:

IT Hardware

Index:

FTSE AIM All-Share

 35.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 50.50
  • 52 Week Low: 34.00
  • Currency: UK Pounds
  • Shares Issued: 27.23m
  • Volume: 146
  • Market Cap: £9.53m
  • RiskGrade: 190

Northamber confident despite swinging to first-half EBITDA loss

By Josh White

Date: Monday 27 Mar 2023

LONDON (ShareCast) - (Sharecast News) - Specialist audio-visual and IT distributor Northamber reported first-half revenue growth of 4.1% year-on-year on Monday, to £33.6m, although it did swing to an EBITDA loss amid inflationary pressures.
The AIM-traded firm said that despite challenging market conditions, it was able to maintain strong gross margins, up 10-basis points at 13%, generating an increase in gross profit of £0.2m to £4.4m year-on-year for the six months ended 31 December.

It said it was focussed on evolving its product mix towards higher-margin, more technical products through Northamber and AVM, and expanded its audio-visual unit into unified communications and collaborations during the half-year, with a new partnership with Yealink.

The board said the new partnership allowed the company to access a "significant" new market for its existing reseller customers, as well as bring existing products from its audio-visual and infrastructure solutions business units to a wider market.

However, continued investment in developing its long-term strategic areas was coupled with significant inflationary pressures and foreign exchange fluctuations, resulting in an increase of 8.6% in distribution and administrative costs year-on-year to £4.64m.

Northamber said those increased costs outweighed gross margin growth, and resulted in an EBITDA loss of £0.03m, swinging from EBITDA of £0.06m a year earlier.

Despite that reduction, the company said it remained debt-free and "diligent" in managing its balance sheet, freeing up additional working capital by reducing stock levels across the group to £9.6m from £10.6m.

Cash reserves increased to £6m at the end of the period, from £4.7m on 30 June.

With net assets at £24.2m, including two unencumbered freehold properties, the group said its overall financial position remained sound.

Its board proposed an interim dividend of 0.3p per share, at a total cost of £81,695, to be paid on 25 April to shareholders on the register on 11 April.

"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 although some of these investment returns have been hampered by the impact of inflationary issues," said chairman Colin Thompson.

"We necessarily remain cautious due to the economic uncertainty 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."

Thompson said Northamber was also investing in new systems for warehousing and enterprise resource planning, which it believed would deliver "substantial" efficiency gains for the future.

"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."

At 0942 BST, shares in Northamber were down 0.24% at 41.9p.

Reporting by Josh White for Sharecast.com.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Northamber Market Data

Currency UK Pounds
Share Price 35.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 50.50
52 Week Low 34.00
Volume 146
Shares Issued 27.23m
Market Cap £9.53m
RiskGrade 190

Northamber Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
72.24% above the market average72.24% above the market average72.24% above the market average72.24% above the market average72.24% above the market average
65.22% above the sector average65.22% above the sector average65.22% above the sector average65.22% above the sector average65.22% above the sector average
Price Trend
42.12% below the market average42.12% below the market average42.12% below the market average42.12% below the market average42.12% below the market average
15.38% below the sector average15.38% below the sector average15.38% below the sector average15.38% below the sector average15.38% below the sector average
Income
87.2% below the market average87.2% below the market average87.2% below the market average87.2% below the market average87.2% below the market average
75% below the sector average75% below the sector average75% below the sector average75% below the sector average75% below the sector average
Growth
68.63% below the market average68.63% below the market average68.63% below the market average68.63% below the market average68.63% below the market average
76% below the sector average76% below the sector average76% below the sector average76% below the sector average76% below the sector average

Northamber Dividends

  Latest Previous
  Interim Final
Ex-Div 11-Apr-24 14-Dec-23
Paid 26-Apr-24 19-Jan-24
Amount 0.30p 0.30p

Trades for 17-Apr-2024

Time Volume / Share Price
12:16 2 @ 36.00p
12:16 2 @ 34.00p
12:16 1 @ 34.00p
12:07 141 @ 35.30p

Northamber Key Personnel

Finance Director Tony Lee

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