Northern Bear Plc Trading Update (7414H)
June 12 2017 - 2:00AM
UK Regulatory
TIDMNTBR
RNS Number : 7414H
Northern Bear Plc
12 June 2017
12 June 2017
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 2017 ("FY2017").
Highlights
-- Earnings per share from continuing operations for FY2017 are
ahead of FY2016 and management expectations following another
strong year's trading.
-- Net positive cash position at 31 March 2017 (31 March 2016: GBP2.5m net bank debt).
-- Progressive dividend policy to continue (FY2016: 2.0p per share).
Trading
The Board is delighted to announce that the unaudited
preliminary results after tax for continuing operations for FY2017
will be ahead of prior year results and management
expectations.
This has been achieved through an increase in turnover following
a relatively mild winter and continued strong performance,
particularly in the Group's Roofing division, along with continued
careful contract selection and management.
The Company disposed of its subsidiary Chirmarn Holdings Limited
on 31 March 2017, as previously announced, following a strategic
review. As a result the Group will report a loss on discontinued
operations in the year which will include trading losses of GBP0.2m
(FY2016: GBP0.1m profit), a loss on book value on disposal, and a
non-cash write off of related goodwill.
Reduction in bank debt
The strong trading performance has resulted in a further
significant improvement in the Group's financial position. The
Group will, for the first time since flotation, report a positive
net cash position at 31 March 2017 (31 March 2016: GBP2.5m net bank
debt).
Operational Matters
We have experienced excellent results from continuing operations
across the whole Group being roofing services, building services
and materials handling. We have carried out work from the North of
Scotland to Cornwall and an element of the growth that has been
achieved is attributable to the geographical expansion of the
Group's customer base.
We have moved into the new financial year with a particularly
strong order book for the time of year which currently provides
optimism for another good set of results in the year ending 31
March 2018.
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 2017
(FY2016: 2.0p per share) subject to Shareholder approval.
Steve Roberts, Executive Chairman of Northern Bear,
commented:
"As a Board, we are again delighted with the performance of the
Group in the year ended 31 March 2017. We are fortunate to have a
very strong management team in all of our businesses and the
continued strong performance is testament to their efforts and
skills.
"After careful consideration, and over a two year period during
which many options were assessed, we decided to dispose of our
asbestos removal business, Chirmarn, to concentrate our efforts in
other business sectors where the board believes greater growth can
be achieved. The results from continuing operations assisted us in
making this decision.
"As previously reported, after many years of effort reducing
bank debt, we are delighted to announce that the Group had a net
positive cash balance at 31 March 2017. Whilst there are obviously
working capital swings within any given month, our GBP4.5m of
revolving and overdraft facilities provide us with the resource to
continue with our progressive dividend policy whilst having the
financial wherewithal to look at smaller acquisitions without the
need to raise new equity.
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
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