Northamber hit by another poor set of results

Channel FinanceDistie
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Doesn’t see itself returning to profitability any time soon

Northamber has increased its half year losses for the six months to 31 December 2015. The distie said its pre-tax loss in the first half increased to £547,000 from the £292,000 loss the previous year, and warned it sees “no near-term return to profit”.

Sales fell to £32.5 million from £35.7 million. Northamber claims it was hit by the continuing “hiatus” surrounding the release of Microsoft’s Windows 10 operating system, which was launched last July.

Money Cash Cheap Purse ShoppingNorthamber shares were down 11 percent to just over 31 pence on the news of a continuing downward spiral in business performance at Northamber.

Northamber chairman David Phillips said: “As a result primarily of one off staff recruitment costs [to help go after higher margin sales], overheads were some £190,000 higher than for the same period in the previous year, with the net result that the pre-tax loss for the period was £547,000 compared with £292,000 in the first half of the previous year.

A most disappointing short term result; albeit there should be further benefits accruing from this strategy over the medium term.”

Phillips added: “These last six months amply demonstrate the complexities of the market place we serve, one in which we have 35 years’ experience, where we aim to make credible judgements about the future whilst subject to volatile market forces.

With the current marketplace uncertainties it is difficult to indicate a near term return to profit. We are confident in the medium and long term of delivering profitability due to already evidenced underlying growth, supported by our strong financial position and infrastructure.”

@AntonySavvas