Northbridge Industrial Services PLC Pre- Close Trading Update (0149O)
February 04 2016 - 1:00AM
UK Regulatory
TIDMNBI
RNS Number : 0149O
Northbridge Industrial Services PLC
04 February 2016
4 February 2016
Northbridge Industrial Services Plc
("Northbridge" or the "Group")
Pre- Close Trading Update
Northbridge, the industrial services and rental company, is
pleased to issue the following pre-close trading statement in
advance of its preliminary results announcement for the year ended
31 December 2015, which is scheduled to be released during the week
commencing 11 April 2016.
The Group expects the result for 2015 to be substantially in
line with management's expectations but it is too early to predict
when any recovery may come to our markets in 2016.
Following the last statement regarding the agreement of revised
covenants issued on 17 December 2015, there has been a further fall
in the price of oil and turmoil in the commodity markets in
general. Though this has continued to affect much of our customer
base, following completion of the Group's restructuring and the
further cost cutting measures undertaken in the second half of
2015, Northbridge now is a much more slim-lined and focused group
and, despite these challenging markets, is now much better placed
to take advantage of any upturn when it arrives. Further cost
cutting measures have already been actioned which will benefit 2016
if the downturn is prolonged.
Northbridge has now been consolidated down to two main core
activities, operating through the main subsidiaries, Crestchic Ltd
and Tasman Oil Tools. Crestchic, the specialist electrical
equipment business, manufactures and rents loadbanks and
transformers from its base in Burton on Trent, with depots in
France, Germany, Belgium, Dubai and Singapore and satellite
locations in China and the USA.
Tasman Oil Tools rents drilling equipment to the oil, gas and
geothermal industries from its sites in Australia, New Zealand and
Dubai. All other non-core activities have now been closed and the
assets sold and cash released back to the Group.
The slowdown in the oil & gas industry has had a substantial
impact on all of Northbridge's businesses serving that market,
where there has been an estimated $400 billion cut in capital
expenditure since July 2014. The current surplus of oil supply
compared with demand, which is caused by an increase in global
production and an economic slowdown in the oil importing countries,
has negated the immediate need for much further exploration and
production drilling. This in turn has led to a decline in the world
wide active rig count. The marine fabrication yards working in the
offshore energy area have also experienced a slowdown in new orders
and conversions together with delays, postponements and
cancellation of existing orders.
Against this backdrop, our rental activities relating to the
energy sector continue to suffer, and this affects both oil tools
and loadbanks. In contrast, the loadbanks and transformers
operating out of Europe have had a good year, where the lower cost
of fuel oil has increased investment in load testing generators,
and transformer rental contracts have been extended leading to a
record level of activity for the Group.
Change of name of Nominated Adviser and Broker
The Company also notifies that its Nominated Adviser and Joint
Broker has changed its registered name from Westhouse Securities
Limited to Stockdale Securities Limited.
For further information
Northbridge Industrial Services plc 01283 531645
Eric Hook, Chief Executive Officer
Stockdale Securities Limited (Nominated Adviser and Broker) 020
7601 6100
Robert Finlay/Antonio Bossi /Henry Willcocks
Buchanan Communications 020 7466 5000
Charles Ryland / Stephanie Watson
About Northbridge:
Northbridge Industrial Services plc hires and sells specialist
industrial equipment. With offices or agents in the UK, USA, Dubai,
Belgium, Germany, France, Australia, New Zealand, Singapore, China,
Brazil and South Korea, Northbridge has a global customer base.
This includes utility companies, the oil and gas sector, shipping,
banking, mining, construction and the public sector. The product
range includes loadbanks, transformers, and oil tools. Northbridge
was admitted to AIM in 2006 since when it has recorded increased
earnings and dividends based on providing a high level of service,
responsiveness and flexibility to customers. It has grown by the
acquisition of companies in the UK, Dubai, Australia, Belgium and
Singapore and through investing further in those acquired companies
to make them more successful. Northbridge continues to seek
suitable businesses for acquisition across the world
This information is provided by RNS
The company news service from the London Stock Exchange
END
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