Northamber has revealed it has had to reduce its workforce and record a small loss for the first quarter of its financial year following the tough market conditions.
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In an interim management statement the distributor blamed exchange rate fluctuations, lack of liquidity and high levels of uncertainty for a "lack lustre start" to its financial year, which started in July.
"In the preliminary statement of the results for the year to 30 June 2008, the Chairman, David Phillips, indicated that the current year had a lack-lustre start. In terms of turnover that prediction was correct and was significantly lower when compared with the same period in the previous year," the statement added.
Although lower than last year the distributor's gross margin levels remained firm and the statement drew attention to its financial position as an indication that it expected to ride out the economic storm.
"The strength of our balance sheet and infrastructure, including our cash reserves standing at £11 million at the quarter end, and our demonstrated ability to maximise opportunities and contain costs, should provide that we are in a good position to benefit from any positive change in circumstances and weather the situation in the meantime."