- Northamber reports a return to profit for the full year of £37,000 pre tax, reversing the £418,000 pre tax loss reported at the 31 December interim stage.

This was achieved despite an anticipated fall in revenue to £101 million from the £121 million for the prior year. The rate of revenue decline for the second half of this year was lower than the comparative period of last year. The reduced level of turnover needs to be seen within the context of the need to re-profile the company's offerings away from empty revenue and towards more value added content.

The change in the profit profile also came from a combination of improved gross margins and ongoing containment of overheads.

Gross margins improved from 6.8% for the year to end June 2011 to 7.7% for the year ended June 2012 and demonstrate the stated ongoing policy of seeking the higher margin business rather than just volume and turnover. Overheads were also reduced from £8.5 million to £7.9 million, a saving of £0.6m. These were achieved principally by a reduction in the wages bill, a necessary if unpalatable consequence of the general economic climate and its effect on demand. The company remains debt free, with Net Assets of £24.1 million or 85.7p per share compared with 86.5p per share for the previous year.

Cash reserves at 30th June 2012 were £4.3 million, which following our £6.8 million warehouse freehold purchase including costs compares with the £10.7 million a year ago.

At 8:42am: [LON:NAR] Northamber share price was 0p at 35p

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