Northamber Pushes European Expansion and Higher-Value Tech Amid Transition Year Loss

Northamber ( (GB:NAR) ) has issued an update.

Northamber reported a year of strategic transition for the 12 months to 30 June 2025, delivering 13% revenue growth and a 12% increase in gross profit despite difficult UK technology and AV markets. The group continued to pivot away from low-margin legacy lines toward higher-value AV, UC, cyber security and network infrastructure offerings, which now generate over 80% of revenue, while like-for-like operating costs fell through structural simplification, site consolidation and removal of duplicated overheads. Underlying trading improved but adjusted EBITDA remained negative at around £0.6m, and reported results were weighed down by £2.2m of net exceptional and non-recurring costs linked to acquisitions, restructuring, legal matters and legacy stock exits, which management views as the necessary clean-up to create a more resilient and scalable platform. The company significantly broadened its geographic reach through the acquisitions of Renaissance in Ireland and Epatra and Sahara in the Benelux, integrating Tempura and Sahara Benelux into Epatra to form a single regional platform, so that non‑UK business now accounts for about 20% of turnover and reduces reliance on the domestic market. Operationally, Northamber exited multiple warehouses and offices and consolidated UK and Benelux operations to cut ongoing overheads and improve control, while tighter working capital management reduced stock by over £2m and shortened cash conversion by around 20 days, leaving the balance sheet supported by strong asset backing. Exceptional items also included a remeasurement gain on Tempura’s performance-linked deferred consideration, which provides downside protection if acquired businesses underperform, and recognition of negative goodwill on the Epatra deal, reflecting a favourable entry price into a loss‑making but improving asset. Post year end, the group further strengthened its unified communications offering and scale by acquiring NUC Distribution, a UC specialist with roughly £29m in annual revenue and 11% gross margin, under a conservatively structured, deferred payment deal, underscoring Northamber’s strategy of building scale, improving returns and better absorbing fixed listed-company and governance costs over time.

Spark’s Take on GB:NAR Stock

According to Spark, TipRanks’ AI Analyst, GB:NAR is a Neutral.

Northamber’s score reflects significant operational challenges with declining revenue and profitability. However, strategic shifts and acquisitions provide growth potential. Strong financial stability with no debt and positive corporate events partially offset the weak financial performance and unfavorable valuation.

To see Spark’s full report on GB:NAR stock, click here.

More about Northamber

Northamber PLC is a technology distribution group specialising in higher-value audio-visual, unified communications, cyber security and network infrastructure solutions. Historically UK-focused, the company is reshaping itself into a more scalable, value-add European technical distributor, with a growing presence in Ireland and the Benelux region and an emphasis on services, cloud marketplaces and recurring revenue models.

Average Trading Volume: 16,383

Technical Sentiment Signal: Hold

Current Market Cap: £9.22M

For an in-depth examination of NAR stock, go to TipRanks’ Overview page.