Northamber (NAR) AI Stock Analysis

• Market Cap: £8.41M
• Dividend Yield: 1.85%
• Average Volume (3M): 3.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: -6.09%
• EPS Growth: -161.61%
• Country: UK
• Employees: 92
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): -0.13
• Shares Outstanding: 27,113,403
• 10 Day Avg. Volume: 6,501
• 30 Day Avg. Volume: 3,730
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: 33.00p ▲(1.54% Upside)

The score is held back primarily by weak financial performance (widening losses and declining equity) despite a debt-free balance sheet and improved FY2025 cash flow. Technicals are mildly supportive with price above key long-term averages, while valuation is constrained by losses; the recent acquisition is a positive strategic catalyst but not enough to outweigh profitability concerns.

Positive Factors

Strategic Shift

The shift towards high-margin sectors like AV and Cyber Security positions Northamber for improved profitability and market differentiation.

Executive Appointment

The appointment of an experienced executive in AV and IT sectors strengthens leadership, potentially enhancing operational efficiency and strategic execution.

European Expansion

The acquisition of Epatra expands Northamber's market presence in Europe, leveraging synergies to boost growth and profitability outside the UK.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and competitiveness, potentially impacting long-term growth prospects.

Negative Profitability

Negative profitability reflects operational inefficiencies and could hinder reinvestment in growth initiatives, affecting future performance.

Weak Cash Flow

Weak cash flow generation limits financial flexibility and may constrain the company's ability to fund strategic initiatives and manage liabilities.

Northamber Business Overview & Revenue Model

Company Description

Northamber plc, together with its subsidiaries, engages in the supply of computer hardware, computer printers and peripheral products, computer telephony products, and other electronic transmission equipment in the United Kingdom. The company offers computer accessories, mice and keyboards, monitors, PCs, tablets, and VDI terminals; hard disks, SSDs, and memory products; and accessories, AV accessories, large format products, digital signage products, and projectors. It also provides cameras, color inkjets, color lasers, labelling and barcoding, mono lasers, scanners, and other print and imaging products, as well as printer consumables, scanning software, and scanner services; and add on cards, CPU's, cases and PSU's, cooling and fans, gaming peripherals, graphics cards, mother boards, multimedia and other products, and USB products. In addition, the company offers cables and cable accessories; backup and UPS accessories and services; cabinets, KVMS, servers, and enterprise software, as well as vendor and other services; and cameras, networking, network accessories, physical security, and other security products. Further, it provides cloud, design and publishing, desktops, licensing, security, servers, and speech software; and audio and conference phones, and autoID products. The company also exports its products to the Republic of Ireland, the Channel Islands, Isle of Man, and members of the European Union. Northamber plc was incorporated in 1980 and is headquartered in Chessington, the United Kingdom.

How the Company Makes Money

Northamber 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. However, the strong equity position and lack of debt provide some financial stability.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	63.31M	63.31M	56.01M	67.15M	66.26M	60.01M
Gross Profit	9.00M	9.00M	8.04M	8.91M	8.47M	7.81M
EBITDA	-2.78M	-2.78M	-1.02M	4.00K	-54.00K	791.00K
Net Income	-4.03M	-4.03M	-1.33M	-411.00K	-442.00K	337.00K
Balance Sheet
Total Assets	37.99M	37.99M	38.40M	35.83M	34.82M	35.11M
Cash, Cash Equivalents and Short-Term Investments	4.58M	4.58M	4.69M	5.51M	4.70M	7.45M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	19.96M	19.96M	15.91M	11.95M	10.37M	10.03M
Stockholders Equity	18.03M	18.03M	22.48M	23.88M	24.45M	25.09M
Cash Flow
Free Cash Flow	243.00K	243.00K	-704.00K	-577.00K	-2.63M	-3.38M
Operating Cash Flow	480.00K	480.00K	-269.00K	-219.00K	-2.40M	-3.13M
Investing Cash Flow	-330.00K	-330.00K	-3.21M	1.20M	-157.00K	-224.00K
Financing Cash Flow	-260.00K	-260.00K	2.66M	-163.00K	-191.00K	-163.00K

Northamber Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 32.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NAR, the sentiment is Neutral. The current price of 32.5 is above the 20-day moving average (MA) of 32.36, above the 50-day MA of 30.80, and above the 200-day MA of 30.37, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 41.02 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:NAR.

Northamber Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ING	77 Outperform	£15.53M	8.37	28.74%	5.18%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TIDE	58 Neutral	£5.26M	―	―	―	―	―
MIDW	54 Neutral	£193.20M	27.77	3.93%	5.10%	-2.54%	-69.38%
NAR	53 Neutral	£8.41M	-2.11	-19.88%	1.85%	-6.09%	-161.61%
SYS	51 Neutral	£13.38M	-6.25	-9.20%	―	-7.45%	78.23%
RDT	39 Underperform	£2.44M	-0.34	-213.44%	―	5.29%	72.50%

Northamber Corporate Events

Northamber Publishes 2025 Annual Report Following Audited Results

Northamber PLC has released its audited Annual Report for the financial year ended 30 June 2025, following the publication of its full-year results on 23 December 2025. The report is now available to shareholders and the public on the company’s website, improving transparency around its recent performance and providing stakeholders with comprehensive information for assessing the company’s financial health and outlook.

The most recent analyst rating on (GB:NAR) stock is a Hold with a £33.00 price target. To see the full list of analyst forecasts on Northamber stock, see the GB:NAR Stock Forecast page.

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

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.

Northamber Expands Portfolio with Acquisition of Nuvias UC’s UK Hardware Business

Northamber PLC has acquired Nuvias UC’s UK Hardware Business, NUC Distribution Ltd, for up to £7.1 million. This acquisition strengthens Northamber’s position as a leading distributor in the UK by broadening its product offerings and enhancing its technical capabilities, particularly in solution design and UC deployment support. The acquisition is part of Northamber’s strategy to expand its AV and UC portfolio through targeted acquisitions, responding to market consolidation trends and increasing its reach and support for partners.