Northamber feels effect of year 2000 lockdown

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 year 2000.

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 year 2000.

The company also enters the millennium without a financial director, following the departure of long-serving executive Marilyn Lee in December 1999.

For the interim six months to 31 December 1999, Northamber's profit was £3.4m - down from £4.6m during the same period in 1998. Sales fell from £141m in 1998 to £133m.

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

However, 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 corporates.

"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 e-business market," said Phillips.

Trading during Northamber's financial second half had started well and gross margins had improved, he said, adding that the board is confident about the remainder of the year.