Cost cuts bear fruit for Northamber
Northamber has turned in a healthy profit on the back of two years of cost trimming. The pan-UK distie expresses confidence for this year too, pointing to increased market share for its franchises, as well as better market conditions.
For the full year to 30 June 2004, The company produced a pre-tax profit of £2.2m (FY 2003: £422,000) before an exceptional property-related loss of £393,000 following the assignment of the lease of the former principal trading property. Sales were down a little to £233m (FY 03, £240m), reflecting price erosion, albeit at a reduced rate from recent years, the company says.
Also chairman David Philips notes its continued "avoidance of loss making sales of mere revenue products", enabling it to reduce total overheads by 8.3 per cent. Average staff numbers during the year fell10.7 per cent to 299 and property costs are down. Upshot: a 3.4 per cent percentage increase in gross profit margin. Northamber ended the year with £9.15m in the bank and nil debt. Which is nice for a distie these days.
The board is to recommend a final cash dividend of 3p (net), taking the full year tally to 4.1p (FY 03: 3p).
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