Northamber begins 2000 in upbeat mood after downturn

Broadline distributor Northamber suffered a drop in sales and profit during the second half of 1999, as corporate IT spending was put on hold ahead of the millennium.

Broadline distributor Northamber suffered a drop in sales and profit during the second half of 1999, as corporate IT spending was put on hold ahead of the millennium.

The Chessington-based distributor also enters the new millennium without a financial director, following the departure of the company's long-serving executive, Marilyn Lee, in December.

For the interim six months to 31 December, Northamber's profit was £3.4m, down from £4.6m during the same period in 1998. Sales fell from £141m in 1998 to £133m.

David Phillips, chairman of Northamber, blamed the downturn on pre-millennium lockdown among corporates, price erosion and investments in internet services.

He said the results compared "quite favourably" with the equivalent period in 1998, adding that the second calendar quarter of 1999 proved to be the lowest point of the year.

Northamber has focused on enhancing its support for a number of Internet-based initiatives, particularly among smaller corporate users.

"We believe the company is now one of the few organisations in the UK that can effectively and efficiently handle the facilitation requirements of the now fast-evolving IT distribution ebusiness market," said Phillips in a statement.

Phillips also said that trading during Northamber's financial second half has started well and that gross margins have improved. He added that the board is confident about the remainder of the year.