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Northamber PLC (GB:NAR)
LSE:NAR

Northamber (NAR) AI Stock Analysis

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Northamber

(LSE:NAR)

Rating:57Neutral
Price Target:
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.

Northamber (NAR) vs. iShares MSCI United Kingdom ETF (EWC)

Northamber Business Overview & Revenue Model

Company DescriptionNorthamber (NAR) is a UK-based distributor specializing in IT equipment, technology solutions, and audiovisual products. The company serves a wide range of sectors including education, healthcare, and corporate environments, providing a comprehensive portfolio of products and services that include computing hardware, networking solutions, software, and professional services.
How the Company Makes MoneyNorthamber primarily makes money through the distribution and sale of IT and technology products to a variety of sectors. Its revenue streams include the wholesale of computing and networking hardware, software licensing, and provision of audiovisual solutions. The company partners with numerous technology manufacturers and suppliers to offer a broad range of products, leveraging these partnerships to negotiate competitive pricing and exclusive distribution rights. Additionally, Northamber generates income from value-added services such as technical support, installation, and consultancy, which enhance its product offerings and customer relationships.

Northamber Financial Statement Overview

Summary
Northamber faces significant challenges with declining revenue, negative profitability, and weak cash flow generation. The company benefits from a strong equity position and no debt, enhancing its financial stability. However, negative returns and cash flow issues highlight the need for operational improvements to achieve sustainable growth.
Income Statement
40
Negative
The company has experienced a significant decline in revenue over the past year, with a revenue decrease of 16.6% in 2024 compared to 2023. The gross profit margin remains modest at 14.35%, but both EBIT and net profit margins are negative, indicating operational and net losses. Despite some past revenue growth, the recent downturn and negative profitability metrics indicate challenges in income performance.
Balance Sheet
65
Positive
Northamber maintains a solid equity position with an equity ratio of 58.54%, reflecting good financial stability. The debt-to-equity ratio is favorable at 0, indicating no reliance on debt financing. However, the return on equity is negative due to losses, which undermines overall balance sheet strength.
Cash Flow
50
Neutral
The company has struggled with negative free cash flow and operating cash flow, although the free cash flow has improved slightly from 2023 to 2024. The operating cash flow to net income ratio is negative, which is concerning for cash generation. Despite some improvement in free cash flow, overall cash flow performance remains weak.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue62.77M56.01M67.15M66.26M60.01M52.84M
Gross Profit8.63M8.04M8.91M8.47M7.81M5.48M
EBITDA-180.00K-1.02M4.00K-54.00K791.00K10.17M
Net Income-574.00K-1.33M-411.00K-442.00K337.00K8.51M
Balance Sheet
Total Assets30.83M38.40M35.83M34.82M35.11M33.27M
Cash, Cash Equivalents and Short-Term Investments2.53M4.69M5.51M4.70M7.45M10.97M
Total Debt0.000.000.000.000.000.00
Total Liabilities7.37M15.91M11.95M10.37M10.03M8.36M
Stockholders Equity23.46M22.48M23.88M24.45M25.09M24.91M
Cash Flow
Free Cash Flow-3.36M-704.00K-577.00K-2.63M-3.38M-6.59M
Operating Cash Flow-2.65M-269.00K-219.00K-2.40M-3.13M-1.22M
Investing Cash Flow-711.00K-3.21M1.20M-157.00K-224.00K8.97M
Financing Cash Flow-163.00K2.66M-163.00K-191.00K-163.00K-232.00K

Northamber Technical Analysis

Technical Analysis Sentiment
Positive
Last Price32.00
Price Trends
50DMA
31.51
Positive
100DMA
29.11
Positive
200DMA
29.27
Positive
Market Momentum
MACD
0.12
Positive
RSI
66.20
Neutral
STOCH
61.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NAR, the sentiment is Positive. The current price of 32 is below the 20-day moving average (MA) of 32.03, above the 50-day MA of 31.51, and above the 200-day MA of 29.27, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 66.20 is Neutral, neither overbought nor oversold. The STOCH value of 61.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:NAR.

Northamber Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
£892.45M51.588.64%0.65%2.70%-51.35%
73
Outperform
£4.72B18.9923.66%2.76%0.48%-1.96%
69
Neutral
£55.83M8.52%5.83%19.29%
GBSDY
64
Neutral
£140.83M-0.65%10.92%-4.08%29.90%
63
Neutral
£564.00M24.42-6.00%2.45%3.52%-29.29%
GBNAR
57
Neutral
£8.68M-6.68%3.75%-6.09%-161.61%
GBRWA
56
Neutral
£123.93M29.69-3.96%13.85%-16.16%-145.46%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:NAR
Northamber
32.00
-5.66
-15.03%
GB:RWA
Robert Walters
176.50
-206.65
-53.93%
GB:STAF
Staffline
47.40
9.20
24.08%
GB:SDY
Speedy Hire
31.15
-2.08
-6.26%
GB:CVSG
CVS Group plc
1,238.00
204.57
19.80%
GB:HWDN
Howden Joinery
849.00
-27.16
-3.10%

Northamber Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Northamber PLC Appoints Matthew Light as Executive Director
Positive
Mar 27, 2025

Northamber PLC has appointed Matthew Light as an Executive Director, effective March 27, 2025. With 30 years of experience in the AV and IT sectors, Light will focus on the UK AV businesses, leveraging his expertise to enhance Northamber’s operations and capitalize on synergies within its technical Audio Visual distribution. This strategic move is expected to strengthen Northamber’s industry positioning and benefit stakeholders by doubling down on its AV business interests.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Northamber PLC Reports Strategic Shift and Revenue Growth
Positive
Mar 27, 2025

Northamber PLC has reported a significant strategic shift towards high-margin, technical distribution, with over 80% of sales now coming from Audio Visual, Cyber Security, or Network Infrastructure. The company’s recent acquisitions, including Tempura Communications and Renaissance Contingency Services, have contributed to a 9.9% increase in revenue and a 27.5% rise in gross margin. Despite challenging market conditions in the UK, Northamber remains optimistic about future growth, supported by its strong balance sheet and continued investments in strategic areas.

M&A TransactionsBusiness Operations and Strategy
Northamber PLC Expands European Presence with Epatra Acquisition
Positive
Feb 6, 2025

Northamber PLC has acquired Epatra B.V., a distributor of professional audio-visual solutions in the Netherlands and Belgium, to bolster its European expansion. The acquisition supports Northamber’s strategy to grow its market presence outside the UK and leverage synergies with Epatra’s extensive distribution network and client base, which is expected to enhance the company’s growth and profitability in the European market.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 20, 2025