Newcastle-based building services group Northern Bear plc said its profit before income tax rose from £1.9 million to £2.1 million in the year ended March 31, 2024, as revenue slipped to £68.7 million from £69.7 million.
Northern Bear reported a return of capital of £3.1 million by way of tender offer for 5 million of the company’s ordinary shares at a price of 62 pence per ordinary share, completed in December 2023.
Equity dividends paid during the year were £0.8 million (2023: £nil).
“The group generated continued strong operating results during FY24 which are testament to the hard work and commitment of the group’s employee base,” said the group.
“Site activity levels remained high despite the ongoing macro-economic challenges and their related impact on the construction industry.
“Trading during the first half of FY24 was strong, although significantly higher rainfall than normal for the majority of FY24 (particularly during the second half) impacted results.
“In addition to the substantial return of capital to shareholders during FY24 via both dividends and a tender offer, a final dividend of 2 pence per ordinary share is proposed.”
In its outlook, Northern Bear said: “The first quarter of the current financial year, ending 31 March 2025 (FY25), has started positively and results have been in line with management expectations.
“As always, the timing of group turnover and profitability is difficult to predict, despite the continued strong forward order book, and our results are subject to monthly variability.
“The reduction in the total issued ordinary share capital, as a result of the tender offer in December 2023 is expected to further benefit earnings per share in FY25.
“Investment in new organic growth ventures, primarily reported in overhead costs, is currently expected to increase operating expenses by up to £0.3 million in FY25.”
Northern Bear CEO John Davies said: “I am delighted to have taken on the role of Group Chief Executive Officer, having worked closely with Keith Soulsby over the year prior to his retirement.
“Northern Bear has a strong group of businesses with excellent reputations in their respective markets, and I look forward to working with the board and all our employees and stakeholders in continuing to develop the group and deliver value for shareholders.”