UK technology distributor Northamber has reported full-year results for the 12 months ended 30 June 2023.
Against what the company called a “challenging backdrop”, sales for the year were up 1.3% to £66.3 million (£82 million) while gross margin increased by 50 basis points to 13.3%. Despite these positive factors, Chairman Colin Thompson said the performance in some of the distributor’s focus areas remained “impacted by softer demand due to deferred purchasing decisions by some end users as they chose to defer non-essential spend in the face of inflationary pressures and continuing economic uncertainty”.
Inflation also affected Northamber itself as distribution, electricity and staff costs all rose. As a result, the company just about broke even on an EBTDA (ie, after interest) basis while it posted a pre-tax loss of £0.41 million. Both the EBTDA and pre-tax results were improvements versus the prior year.
The company is currently implementing the phased roll-out of a new ERP system. This, it said, might lead to some “initial disruption” until the end of this calendar year.