StockMarketWire.com - Northamber issued a generally bleak trading update, and said its turnaround will not be immediate as turnover in the nine months to March 31 plunged by a daunting 20%.

"Whilst the update on our trading position is not comforting ... the outlook is not all gloom. There are opportunities available which we shall endeavour to maximise over the shortest time feasible," the company said in a trading statement.

Northamber continued to drive necessary changes in moving from high volume, very low margin solutions and the policy of seeking higher margins and products that better meet the commercial needs of its customers' businesses.

"Steps are being taken to accelerate this movement, however it will take some time for the impact to be fully realised," it said.

Northamber's update was against a backcloth of strong declines in demand for personal computers, accompanied by price and margin erosion. This trend showed no sign of abating, Northamber said.

"For our three quarters ended 31st March 2013, turnover was some 20% lower than for the comparative period last year. This was, however, a slightly better result than achieved for the half year to December 2012 where turnover was 22% lower than the previous comparative period," the company said.

Northamber continued its policy of seeking ranges of products more pertinent to current customer demands and higher margins.

"The industry wide pressure on prices and profits was to some extent, therefore, neutralised and our operating gross margin was very slightly increased for the 9 months to end of Q3 when compared with the relative same period last year.

"Such a major and ongoing reduction in turnover and its dilution of overhead costs inevitably causes difficulties in maintaining overall profitability. The continual need to restructure costs and align operations with revenue takes time and with it significant additional staff restructuring."


At 8:55am: [LON:NAR] Northamber share price was 0p at 30.5p



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