Northamber Q1 sales drop nine per cent

Northamber has seen sales drop nine per cent in the first quarter 2010 financials.

In an interim management statement, the distributor claimed that the economic trends it referred to in its year-end statement “continued to challenge commercial intentions”.

However, the nine per cent drop was “significantly less” than the 22 per cent decline in Q1 2009, the statement pointed out.

Gross margin held up well in Q1, Northamber said, with a quarter of a point reduction compared to the previous year.

Continuing on a positive note, the firm said its tight cost control measures have been a success, with the statement revealing it has managed to save £500,000 in overheads, compared to the same quarter the previous year.

Northamber also said the new franchises mentioned in its year-end statement will “show an impact later in the year”.

Low interest rates have also affected Northamber’s net cash position, the statement said.

“The net result was a small loss, but less than the corresponding period last year and for what is traditionally our weakest quarter,” it added.

“With considerable cash balances in excess of £9m and our Net Assets per share standing at 89.1 pence, we continue to manage a strong balance sheet which is a significant benefit,” the statement said.

Looking forward, the firm remained cautious.

“The sector as a whole continues to experience challenging and difficult times, and we are similarly affected by those prevailing conditions and the outlook continues to be difficult to assess,” the statement concluded.