Northamber swings into the red

26th Aug 2011 08:27

Computer hardware supplier Northamber moved into an annual loss as it battles against slowing sales and endemic price erosion. The Surrey-based firm reported a full year pre-tax loss of £106,000, the first full year loss in 18 years, compared with last year's £258,000 pre-tax profit.Northamber also reported a £7.4m or 5.8% drop in sales to £121.1m after a decline both in volume product sales since last January alongside the extreme price erosion driven by supply/demand excesses.Sales in its final quarter fell 10% from the previous quarter, during which the group posted a small like-for-like increase in turnover.Looking ahead the group noted concern about the potential impact of the downturn on the UK economy and its effects on its industry in particular. "Market events and our experience during this last year lead to the simple conclusion that it would not be sensible to offer any optimism for the near to medium future," it said in company statement."We will continue, as we always have done, to be vigilant, cautious and ever mindful of optimising our opportunities whilst keeping close control of our operations and costs," A reduced final dividend of 1p has been offered, down from 2p last year.---CJ