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Channel assembly lifts Northamber profits

RS/6000 franchise on the cards?

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Northamber is turning its back on the growth at all costs volume distribution model. Speaking to The Register about the company's latest interims, which saw margins rise but sales fall by six per cent, chairman David Phillips said the company was no longer prepared to sacrifice margin for market share. Turnover for the six months to 31 December was £141 million, 6.1 per cent down on the same period in 1997. At same time trading profits increased 10.8 per cent, translating to £4.72 million pre-tax profits (1997: £4.26 million). This was achieved against a backdrop of price erosion of 16 per cent on higher volume products, according to Phillips, who said the results reflect the company’s move to a higher margin model. He cited the company's HP and IBM channel assembly and AS/400 distribution activities as particularly good margin makers. He also expressed confidence that the company would gain RS/6000 distribution rights for the first time this year. Northamber’s historic roots are in the printer market, where many disties shift kit below cost. ®

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