Northamber reported a narrowed loss for the first half of its financial year, helped by strong revenue growth and as it returned to margin growth.
The IT distributor has had a difficult few years with sales halving over the last four years and losses mounting as margins came under pressure from continual price drops.
However, its loss in the six months to end-December was £292,000 compared with the £690,000 loss it reported a year earlier, as revenue rose to £35.7 million, from £30.2 million and its gross margin rose to 6.83% from 6.7%.
Chairman David Phillips continues to berate his industry: "In the past I have too frequently needed to refer to ongoing price erosion, thin margins and the need for tightly focused management, rather than just building empty revenue.
"The sector has for too long been driven by either over-supply or poorly regarded products, all then subject to un-commercial, competitive stock clearance pressures, which while partially avoidable, has not abated," he said.
"After a long-term downward trend echoing the extreme levels of product driven price erosion, we are achieving a slight resumption of growth in margins.
"The 13 basis points improvement in the gross margin for the first half year compares favourably with the same period in the previous year.
"This improvement has been generated by the continued refocusing on those more profitable elements of our business and these established core resources are continuing to show results."
Phillips said the company will continue to operate a tightly controlled cost structure that will insulate it from "any untoward surprises", but also thinks it's well placed to benefit from further revenue growth.
"As you will know from my previous reports, I have learned not to speculate or be over optimistic and am hopeful that our improved trading performance will continue," he said
"However, within both the sector and the economy as a whole, there are many unknowns. Not the least of which will be any delaying effects on the user base IT refresh intentions, resulting from Microsoft's awaited forthcoming release of Windows 10, following the belated abort of the Windows 9 launch, plus the upcoming General Election."