Northamber makes smaller loss as sales improve

"It is disappointing to still be 'in the red' but movement is in the right direction," says chairman David Phillips
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Tech distributor Northamber has announced an increase in sales for the six months ending December 31st 2014.

"It makes a very pleasant change to announce to shareholders an overall 18.1 per cent sales increase to £35.7 million from £30.2 million for the equivalent period last year," said chairman David Phillips.

"I indicated in my last report on the year ending 30th June 2014 that there were signs of improvement and the upward trend we reported for the second half of last year continued into the first half of the current year, with revenues increasing 9.5 per cent since June 30th 2014."

Gross margin rose from £2 million, on a margin of 6.7 per cent, to £2.4 million at 6.83 per cent.

Northamber did make a pre-tax loss of £292,000 during the period, however Phillips points out this is less than half of the £690,000 loss it made during the same period last year.

"It is disappointing to still be 'in the red' but movement is in the right direction," he added. "After a very long term downward trend echoing the extreme levels of product-driven price erosion, we are achieving a slight resumption of growth in margins."

Phillips also pointed out that administrative overheads have been 'further reduced', allowing for additional investment in sales staff.

On the future outlook for Northamber, he said: "As you will know from my previous reports, I have learned not to speculate or be over optimistic and am hopeful that our improved trading performance will continue.

"As we know from history, however, within both the sector and the economy as a whole, there are many unknowns. Not the least of which will be any delaying effects on the user base IT refresh intentions, resulting from Microsoft's awaited forthcoming release of Windows 10, following the belated abort of the Windows 9 launch, plus the upcoming General Election. 

"The Board is confident that the Company is well placed to benefit from further improvements in revenue growth whilst also continuing to operate a tightly controlled cost structure, thus hopefully insulating us from any untoward surprises."

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