Northamber balks at forecasts amidst market uncertainty
Boosts profits despite sales slip
Northamber illustrated the fragility of the tech market today with results that showed a slip in sales, increasing credit insurance costs and a refusal to give guidance on its future performance.
The distributor managed to boost its profits for the year to June 30, which were up 5.9 per cent to £627,000, despite sales slipping 1.4 per cent to £179.7m.
Northamber blamed slippage squarely on “the downturn in the general economic climate” after three quarters of improvement.
Apart from the direct impact of cooling revenues, Northamber said, “administrative costs rose marginally due to increased insurance costs to provide for customers' defaults in the deteriorating economic environment”.
So it was perhaps unsurprising that chairman David Phillips opted not to round off his report with a forecast of the firm’s prospects.
“Within an area of largely discretionary expenditure and a lacklustre start to the year, it is simply not possible to provide any guidance beyond our determination to continue to manage the balance sheet tightly,” he said. ®