Northamber announces £2.94m cash return

Computer distie Northamber intends to return £2.94m, or ten pence a share, to shareholders because it is surplus to working capital requirements.

The Surrey-based firm said yesterday that the proposed return of cash will be made by splitting existing ordinary shares into new ordinary shares and C shares, as well as the expected acquisition of the C shares by stockbroker Walker Crips.

Shareholders will be asked to approve the cash return, which currently represents about 18 per cent of Northamber’s market capitalisation, at an EGM on 3 April.

If the proposal gets the go-ahead, shareholders will get one new share and one C share for each existing share they hold on 2 April.

All the C shares received by shareholders may be purchased by Walker Crips on 3 April for £3.06m, which represents ten pence per C share plus expenses, Northamber said in a statement.

Just last week the company reported a first half rise in pre-tax profit and revenue, helped by a moderate trading recovery and an overheads cutback.

Northamber shares are currently trading at 55.5 pence, up more than 2.5 per cent, on the London Stock Exchange. ®