- Northamber, the trade-only UK distributor of IT equipment, has seen an unexpected acceleration in the downturn of demand, on stock turns, prices and margins for P.C.'s on the Group's sales, which resulted in revenues for the year ended 30 June 2013 falling by 23% from £100.6m in the previous year to £77.5m.

The reduction in turnover necessitated reduction in both staffing and overheads. It made redundancies during the year, which will result in ongoing savings of some £800,000 and are the major element in achieving more immediate reductions in its total overhead of approximately £850,000.

The necessary restructure of its cost base, product focus and staffing, had a considerable effect on its pre-tax result. Overall, there was a pre-tax loss of £1.05m, compared with a profit of £37,000 a year ago.

The directors have switched the company from the main market to AIM and this change became effective last month.

The Board is proposing a final dividend of 0.3p which together with the 0.3p interim will make 0.6p for the year.

D M Phillips, the chairman, commented: "The sector is in the throes of monumental changes and the future direction and product/software format is extremely difficult to forecast.

"The true role of the distributor is one of a wholesaler enabling the fulfilment of demand and wholly dependent on decisions made by prime vendors over which it has no control. This is particularly true when it is the major vendors who are the primary innovators and drivers of manufactured technologies, products and demand."

At 12:54pm: [LON:NAR] Northamber share price was -2p at 32.5p

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