Loss-making Northamber lauds "upward momentum"

Chairman David Phillips claims distributor enjoyed a 'marked change' in fortunes in its fiscal second half

Northamber's chairman says he is more optimistic for the distributor's future than he has been for some time, despite unveiling widening losses to the stock market this morning.

For its fiscal year to 30 June, Northamber saw pre-tax losses widen to £1.16m, compared with £1.05m in 2013, on revenue that fell 15 per cent to £62.9m.

However, chairman David Phillips broke from his usual lugubrious tone by claiming the Chessington-based distributor's fortunes are improving for the better.

"There has been a marked change between the first and second halves of this past year," Phillips said in Northamber's results statement.

"In the first half the results continued the downward trend of previous periods but in the second half we achieved increases in both turnover and margins compared with the first half. Costs were contained in the second half even though we increased the quality and quantity of resources put into marketing, selling and liaison with suppliers."

As a result, operating losses narrowed to £495,000 in the second half of the year, compared with £730,000 in the first half, Phillips said.

Northamber was forced to make redundancies last year but Phillips stressed the distributor – which recently dropped down from the main market of the London Stock Exchange to AIM – is now hiring again "to help deliver our change of focus".

He highlighted the arrival last December of his son, management consultant Alex Phillips, as evidence of the evolution of its core team. Northamber has also seen an increase in good debtors, Phillips stressed, while debt-free net cash stood at £5.08m at 30 June, compared with £6.14m a year before.

Phillips said he remains "cautious" when saying too much about the future.

"However, I do feel that in the current situation and subject to major external forces over which we have no control, the upward momentum we have experienced in the latter part of this year may well continue," Phillips said.

"On that basis, I am more optimistic than I have been for some time on the future for the company. With the dedicated team we have and the underlying strength of the company in not only its trading history and connections as well as the capital resources, I hope to be able to report more progress in the coming years."