Northamber plc (LON: NAR) shares have surged Friday after it announced preliminary results for the year ended 30 June 2021
The IT equipment supplier said it experienced strong growth for the year, driven by a significant increase in revenues and gross margins despite challenging market conditions.
At the time of writing, Northamber shares are up 18.2% at 68p. The high of the day so far was 69p.
The company's revenue increased 13.57% from £52.83 million to £60.01 million compared to the previous year. However, £3.32 million of this year's growth came from Audio Visual Material Limited being included in the results for an entire year rather than 5 months last year.
Despite the revenue rise, pre-tax profit fell to £385,000 from £9.9 million in 2020. However, the significant profit in 2020 was due to a £10.8 million profit on property disposal. Without that money, the company would have reported a loss in 2020.
Looking ahead, the company told investors: “Whilst there are a number of factors such as Brexit, the continued impact of shipping and product constraints, together with the future uncertainty of Covid and any further lockdowns, we remain cautiously optimistic that the investments we have made in our team and in supporting our partners will allow us to continue our growth over the coming years.”
Northamber recommended a proposed final dividend of 0.4p, up from the 0.3p in 2020.
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