Northbridge Industrial Services PLC Pre- Close Trading Update (8178M)
August 02 2017 - 1:00AM
UK Regulatory
TIDMNBI
RNS Number : 8178M
Northbridge Industrial Services PLC
02 August 2017
2 August 2017
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 interim results announcement for the half year ended
30 June 2017, which is scheduled to be released during the week
commencing 25 September 2017. Recent trading has been consistent
with our internal forecasts and, consequently, the Group expects
the results for the first six months of 2017 to be in line with
management's expectations.
Northbridge has two core activities, Crestchic Loadbanks and
Tasman Oil Tools. Crestchic is a specialist electrical equipment
business which manufactures and rents loadbanks and transformers
from its base in Burton on Trent and has depots in France, Germany,
Belgium, UAE and Singapore. It also has 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 the UAE.
The power reliability side of our European, UK and USA
activities has continued to be resilient. New markets in the USA
are expected to provide a long-term growth opportunity for
Crestchic and the growth of renewable power generation in advanced
economies have already provided profitable opportunities and will
continue to do so in the years to come. This contrasts our other
overseas markets which have continued to experience low levels of
activity in power projects, particularly in the oilfields and
shipyards who use our loadbanks and transformers. However, we do
believe these markets will recover in the longer term.
Whilst sentiment in the oil and gas market has maintained its
gradual improvement since 2016, the pace of recovery remains slow,
investment in exploration and production still lags and, despite
reductions in supply, surplus oil stocks are still at a high level.
"Lower for longer" still remains the mantra. As a result, we have
only seen a modest improvement in the trend of oil tool rental
revenues from the record lows of 2016. Having taken the necessary
steps to right-size the business, we continue to generate cash
despite the ongoing sluggishness in energy related industries.
We are also very pleased to announce the formation of a Joint
Venture company in Malaysia with our local partner, Olio Resources
SDN BHD ("Olio"). The new company, called Olio Tasman Oil Tools SDN
BHD ("OTOT") will be 51% owned by Olio and 49% by Northbridge, and
will service the oil tool rental market in the region. It will
begin trading on the 1 October 2017 from a newly established
location in Malaysia. Both JV partners will provide equipment for
the rental fleet and OTOT will also have access to the substantial
existing hire fleet of the Tasman Group. Olio already hold key
contracts for the provision of oil tools to the oil majors in
Malaysia and, while initial trading levels are not expected to be
material to the second half results, 2018 will benefit from a full
year of the Joint Venture. Revenues are then expected to build into
the future, particularly as the oil and gas industry recovers.
For further information
Northbridge Industrial Services plc 01283 531645
Eric Hook, Chief Executive Officer
Iwan Phillips, Finance Director
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/ Catriona Flint
About Northbridge:
Northbridge Industrial Services plc hires and sells specialist
industrial equipment. With offices or agents in the UK, USA, UAE,
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, UAE, 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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