Northamber Plc reported a pre-tax loss of UKP980,000 for the six months ended October 31, compared with from a profit of UKP219,000 last time, on turnover that fell by 6.4% to UKP39,891. The computer, printer and peripherals distributor says that trading conditions have beeen extremely difficult, and its performance reflects the effect of high interest rates over the period. Also, in conjunction with price erosion, Northamber says that it has had to maintain stringent provision levels for bad and doubtful debts and stocks at the half year. The company’s Irish subsidiaries have shown only slow improvement and headquarters has instituted some management changes across the water. However, Xitan Ltd, the software distribution acquisition, and the new PDL hardware distribution business, both based in Southampton, have moved into profit. During the six months, Northamber reduced its interest payments by 50% to UKP154,000, and purchased the freehold of its Southampton trading premises for UKP650,000, in addition to buying in 200,000 shares for cancellation for UKP81,000. Chairman David Phillips says the year has proved more difficult than anticipated, and while there has been some improvement in sales since the end of October, it is no more than a seasonal uplift. Consequently, he is forecasting that the rest of the fiscal year to April 30 will remain difficult and Northamber will not be declaring an interim dividend.
