Distributor Northamber has posted a sharp drop in turnover for its fiscal first-half 2006 and is keeping a “cautious” outlook for the rest of the year due to disappointing uptake of Microsoft Vista.
The broadliner reported a turnover of £95.3m for the six months to 31 December, down 18 per cent compared to the £116m posted in the same period in 2005.
Despite the fall in the top line, Northamber managed to increase pre-tax profits from £320,000 to £370,000 on the same basis, which it attributed to higher investment income.
David Phillips, chairman of Northamber, said: “The previously reported disappointing sector trading conditions continued to constrain opportunities and with unabated price deflation in many key product areas, provided little scope for improvement in revenue.
“The Board is necessarily cautious for the outcome of the current trading year.
“The slower than expected uptake for Microsoft's newly launched Vista and the
unrewarding state of the market in which we operate is not encouraging.”
However he said Northamber is 'well positioned' to take advantage of any improved trading opportunities within the sector.
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