Northern Bear Plc Trading Update (7639Z)
June 01 2016 - 1:00AM
UK Regulatory
TIDMNTBR
RNS Number : 7639Z
Northern Bear Plc
01 June 2016
1 June 2016
Northern Bear PLC
("Northern Bear", the "Company" or, together with its
subsidiaries, the "Group")
Trading Update
The board of directors of Northern Bear plc (the "Board") is
pleased to provide an update on its trading for the year ended 31
March 2016 ("FY2016").
Highlights
-- Earnings per share for FY2016 in line with both FY2015 (8.5p)
and management expectations despite severe weather constraints.
-- Current order book is strong.
-- Cashflow continues to improve and net bank debt has continued
to decrease (31 March 2015: GBP4.8m).
-- Progressive dividend policy to continue (FY2015: 1.5p per share).
Trading
The Board is delighted to announce that the unaudited
preliminary results before and after tax for the year ended 31
March 2016 are in line with the excellent results in FY2015.
This has been achieved despite the severe weather conditions
encountered during the year. It was well publicised at the time
that the North of England was hit by unprecedented floods and high
winds for a prolonged period during the winter months. This
seriously affected the ability to carry out site work, particularly
in the Roofing Division.
As a result, turnover and operating profit have decreased in
FY2016 (FY2015: GBP41.7m and GBP2.5m) but overall net profitability
has been maintained. This has been achieved by careful contract
selection and avoiding chasing turnover on lower margin work. In
addition, the results have benefitted from reduced finance costs
following the renegotiation of bank facilities in March 2015.
Reduction in bank debt
The strong performance has resulted in a further significant
decrease in net bank debt. As a result, the Board intends to
continue with its progressive dividend policy.
The Group is grateful for the continued support of Yorkshire
Bank.
Operational Matters
Following the successful consolidation of various Group
companies onto the Team Valley Trading Estate, the Group has
improved the synergistic benefits to customers of using Northern
Bear plc given the specialist disciplines which exist across the
Group.
This year, the Group has continued to secure a number of high
profile contracts ranging from Heritage sites to lighthouses. These
include, but are not limited, to:
Acklam Hall, Middlesborough;
Alnwick Castle, Northumberland;
St. George's Quarter, Huddersfield;
Durham Castle, Durham;
Howarth Parish Church, Howarth;
The Literary and Philospohical Society, Newcastle; and
Souter Lighthouse, Sunderland.
Despite the adverse weather conditions during the winter months,
our Roofing Division produced another excellent set of results and
it is pleasing that customers continue to recognise the exceptional
skill base within the Roofing Division. This has allowed it to
maintain margins in what has become a margin pressured
marketplace.
Outlook
Current order book levels remain strong across the Group and the
new financial year has started well. It remains frustrating that
the Group is often not in a position to influence when contracts
commence so flexibility is key to maintaining profitability.
Dividend
In view of the continued strong performance of the Group, the
Board is pleased to announce that it is planning to increase the
proposed final dividend in respect of the year ended 31 March 2016
(FY2015: 1.5p per share) subject to Shareholder approval.
Steve Roberts, Executive Chairman of Northern Bear,
commented:
"We are very pleased with the performance in the year,
particularly given the weather impact on the ability to trade on
site in the second half of the year. After many years of tireless
efforts to improve profitability and reduce the level of bank debt,
it is rewarding to be able to continue with a progressive dividend
policy for the benefit of shareholders. We continue to consider
acquisition opportunities but will only execute a transaction where
we are confident that the acquisition will be earnings enhancing
and provide an attractive return on investment."
For further information please contact:
Northern Bear Plc
Steve Roberts - Executive Chairman +44 (0) 84 5680 2369
Tom Hayes - Finance Director +44 (0) 84 5680 2369
Strand Hanson Ltd
James Harris / James Spinney +44 (0) 20 7409 3494
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTUAVURNNAVOAR
(END) Dow Jones Newswires
June 01, 2016 02:00 ET (06:00 GMT)
Northern Bear (LSE:NTBR)
Historical Stock Chart
From Apr 2024 to May 2024
Northern Bear (LSE:NTBR)
Historical Stock Chart
From May 2023 to May 2024