Northbridge Industrial Services PLC AGM Statement (3385Z)
May 26 2016 - 1:00AM
UK Regulatory
TIDMNBI
RNS Number : 3385Z
Northbridge Industrial Services PLC
26 May 2016
FOR IMMEDIATE RELEASE 26 May 2016
Northbridge Industrial Services Plc
AGM Statement
Northbridge Industrial Services Plc ('Northbridge' or 'the
Group'), the industrial services and rental company, issues the
following trading update ahead of its Annual General Meeting to be
held later today at 12.00 noon.
As noted in the preliminary results on 18 April 2016, market
conditions in the Oil & Gas industry have shown no signs of any
improvement in activity so far this year. Sentiment and activity
levels continue to be weak with a backdrop of cutbacks in
investment, closures and project delays, all of which impact on
Northbridge's trading performance.
Northbridge's business model is focused mainly towards rental of
equipment and the Group has high operational gearing, which is
coupled with a strong cash flow and a conservative depreciation
policy. Despite continuing trading losses, EBITDA remains strongly
positive and the net debt position will continue to amortise
rapidly during 2016 and 2017.
Northbridge's balance sheet remains strong and the Group has a
substantial portfolio of rental assets and all of our main
locations remain intact and in operation. Our recent GBP5.5 million
equity fundraising has further strengthened our cash resources
considerably and gives us the flexibility to address current
challenging markets and to take advantage of opportunities which
may arise when conditions allow.
Whilst short term trading visibility remains challenging, it is
still too early to forecast any material changes to the likely full
year out turn. In maintaining the size and scope of our hire fleet,
and with substantial reductions in our overhead costs, our
operational gearing has increased and our performance will be
highly sensitive to modest improvements in revenue. We remain
optimistic that Northbridge will benefit from this strengthened
position when market conditions begin to improve, but we believe
this will be unlikely before 2017.
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 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 grown by providing a
high level of service, responsiveness and flexibility to customers,
by the acquisition of companies in the UK, Dubai, Australia,
Belgium, New Zealand 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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