Shares up 15% as Northern Bear ‘trades strongly’

Shares of Newcastle-based building services firm Northern Bear plc rose 15% on Wednesday after it produced a trading update for the year to March 31, 2018, in which it said the group has “continued to trade strongly” and ahead of management expectations.

“The group’s continuing operations have continued to trade strongly and ahead of management expectations over the second half of the financial year, despite the severe winter weather, particularly during the first three months of 2018,” said Northern Bear in its stock exchange statement.

“There has also been a positive contribution to results from H Peel & Sons Limited following its acquisition on 25 July 2017. 

The board is delighted to announce that the unaudited preliminary results will show both revenue and operating profit for continuing operations for FY2018, both before and after the impact of transaction costs and amortisation of acquired intangibles associated with the H Peel acquisition, ahead of prior year results.

The group continues to hold a high level of committed orders which provides optimism for another good set of results in the year ending 31 March 2019 …

“In view of the continued strong performance of the group, the board is pleased to announce that it is planning to continue with a progressive dividend policy in respect of the year ended 31 March 2018 (FY2017: 2.5p per share) subject to shareholder approval.”

Northern Bear executive chairman Steve Roberts said: “As a board, we are again delighted to be reporting another strong performance for the group in the year ended 31 March 2018.

“I am pleased to report that H Peel has made a positive contribution to results following its acquisition last year and is trading in line with our expectations. 

“We continue to believe that H Peel will be a real asset to the group.

“Our revolving and overdraft bank facilities provide us with the resource to continue with our progressive dividend policy whilst having the financial wherewithal to look at similar acquisitions without the need to raise new equity.”