Northamber sees profit slump

Distributor posts preliminary results for the year ended 30 June 2006

Northamber has posted disappointing preliminary results for the year ended 30 June 2006, with pre-tax profits slumping to £430,000 compared to £2.61m in 2005.

Turnover also fell to £204.4m from £236.3m in 2005, in the face what the distributor claimed were "challenging levels of competition and unabated price erosion".

David Phillips, chairman of Northamber, said in a statement: "Sector trading conditions worsened over the period, constrained opportunities and with continuing price deflation in many key product areas, proved challenging. While constrained by the very adverse sector trading conditions, the balance sheet continues to be exceptionally sound, with a very strong cash position.

"It is widely understood and reported, that July, August and September trading was generally poor across our sector. Subject to the state of the economy as a whole and our own performance within our sector, your Board is cautiously confident in the outcome for the new trading year," added Phillips.