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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Northern Bear Plc | LSE:NTBR | London | Ordinary Share | GB00B19FLM15 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 59.00 | 56.00 | 62.00 | 59.00 | 59.00 | 59.00 | 2,000 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Roof,siding,sheet Metal Work | 69.72M | 1.59M | 0.0850 | 6.94 | 11.05M |
From Apr 2019 to Apr 2024
TIDMNTBR
RNS Number : 5490O
Northern Bear Plc
08 November 2016
8 November 2016
Northern Bear plc
("Northern Bear" or the "Company")
Interim results for the six-month period ended 30 September 2016
The board of directors of Northern Bear (the "Board") is pleased to announce its unaudited interim results for the six months to 30 September 2016.
Highlights:
-- Profit before income tax of GBP1.1 million (2015: GBP0.9 million) -- Basic earnings per share 5.2p (2015: 4.2p) -- Cash generated from operations GBP1.4 million (2015: GBP1.4 million)
-- Further decrease in net bank debt to GBP2.0 million (September 2015: GBP4.0 million; March 2016 GBP2.5 million)
Steve Roberts, Executive Chairman of Northern Bear, commented:
"The results for the six months ended 30 September 2016 represent a further improvement in performance, following excellent results in the previous two years. I am very pleased with our continued progress, and I would once again like to thank our employees for all their hard work and contribution to our continued success."
For further information, please contact:
Northern Bear plc +44 (0) 166 Steve Roberts - Executive 182 0369 Chairman +44 (0) 166 Tom Hayes - Finance Director 182 0369 Strand Hanson Limited (Nominated Adviser and Broker) James Harris James Spinney +44 (0) 20 James Bellman 7409 3494
CHAIRMAN'S STATEMENT
Introduction
I am pleased to report the unaudited interim results for the six months ended 30 September 2016 for Northern Bear plc and its subsidiaries (together "the Group").
The Group has delivered another excellent set of results, with retained profit of GBP0.9 million (2015: GBP0.7 million) and basic earnings per share of 5.2p (2015: 4.2p) for the period. This performance should be measured against what we already considered to be strong first half results in each of the last two years.
Northern Bear was admitted to trading on AIM on 19 December 2006 and we are fast approaching our tenth anniversary as a public company. Despite the severe recession, resulting from the financial crisis that started shortly after our flotation, the current operational management team led by Graham Jennings have worked tirelessly to drive improved trading performance. We have also restructured operations and substantially deleveraged the Group's balance sheet over this period. I would like to thank them for all their efforts and am confident that the Group is well positioned to face the future.
Trading
Turnover for the period was GBP20.9 million (2015: GBP19.6 million) with a particularly strong performance coming from our Roofing division as detailed below. Gross profit increased to GBP4.7 million (2015: GBP4.4 million), with gross margin slightly higher at 22.7% (2015: 22.3%) through continued careful contract selection and management.
The Group's overhead cost base has increased slightly, with administrative expenses up to GBP3.5 million (2015: GBP3.3 million), largely to support higher trading volumes. As a result operating profit was GBP1.2 million for the period (2015: GBP1.1 million).
We continue to benefit from reduced finance costs as debt levels fall and, partly due to this, profit before tax increased to GBP1.1 million (2015: GBP0.9 million).
Cash flow
Net bank debt at 30 September 2016 was GBP2.0 million (September 2015: GBP4.0 million, March 2016: GBP2.5 million). Cash generated from operations was GBP1.4 million in the period (2015: GBP1.4 million) which represents an appropriate cash conversion rate. The improved net bank debt position from March 2016 is despite having paid last year's final dividend of GBP0.4 million (2015: GBP0.3 million) in the period.
The Group is grateful for the continued support of Yorkshire Bank. Discussions are ongoing with regard to the routine review and renewal of term loan and overdraft facilities currently committed to 31 March 2017, and we expect these facilities to be renewed in the ordinary course of business in the near future.
Dividend
Over the past three years, the Board has followed a progressive dividend policy, significantly increasing the final dividend in each year (2014: 0.75p, 2015: 1.5p, 2016: 2.0p per share) as the Group's bank debt and associated outgoings reduced to what we deemed a more appropriate and sustainable level.
We stated some time ago that our policy was to pay only a final dividend, primarily due to the potential impact of severe weather on the Group's trading over the winter months, and we will continue with this policy.
Provided that the strong trading performance continues for the remainder of the financial year, it is the intention of the Board to continue with a progressive dividend policy for the benefit of our shareholders.
Operational and commercial matters
Once again, our Roofing division continues to excel in its sector with Jennings Roofing, Springs Roofing and Wensley Roofing seeing a surge of work in social housing, heritage and private housing projects. We have also benefited from a successful schools programme which has been supported by dry summer weather conditions. It is apparent that the exceptional expertise and knowledge of our employees is having a positive impact with customers seeking good-quality suppliers who employ fully trained and qualified staff.
Our Specialist Building Services division continues to grow in both turnover and in reputation, which is helping to enhance and strengthen the Northern Bear brand in this particular field. I am delighted that Northern Bear Building Services, which was a new division launched in 2010, continues to progress and is delivering a high standard of work while bringing in contracts on time and on budget. We also benefit from sharing technical skills and knowledge across all of our companies in this division.
The Group's Materials Handling business, A1 Industrial Trucks, has again performed strongly through the sale, hire and provision of maintenance of Mitsubishi Fork Lift trucks to its customer base.
The support provided by our in-house health and safety business, Northern Bear Safety, is invaluable in maintaining our high safety standards and ensuring that working environments are compliant with all relevant regulations. They carry out unannounced on-site inspections on a regular basis and provide safety training to all Group companies, including CITB accredited courses. Northern Bear Safety also provides the same services to an increasing number of external clients.
Survey Drones, a sub business operated by the safety team, has seen its best year to date, both in terms of work won and revenue generated. With the use of drones increasing in the construction industry, they are in an ideal position to increase their client base and grow further in the second half of the current financial year.
Strategy
Having used operating cash flow to reduce bank debt levels in recent years, the Group is now well placed to take advantage of both strategic and commercial opportunities as and when they arise.
We continue to believe that acquisitions of specialist building services businesses, either in the same or complementary sectors to our current operations, could further enhance the Group's offering to customers. As previously stated, however, we will only proceed with such an opportunity where we are confident that it will predictably enhance earnings and provide an acceptable return on investment for our shareholders.
We have considered a number of acquisition opportunities in recent months but none were able to meet all of our criteria. We will continue to be cautious with our use of shareholders' funds in this area.
Outlook
Order books remain healthy across the Group and I am cautiously optimistic for a successful second half to the financial year. We have not yet experienced any adverse impact to date from the recent referendum on the UK's continued membership of the European Union, although the longer term impact on our business will become clearer as the process of the UK leaving unfolds over the medium term.
People
I remain proud that the Group directly employs a large majority of its workforce and, overseen by Keith Soulsby, has continued to invest in training new operatives throughout difficult economic times. This is particularly important given the shortage of skilled operatives and cost pressures in our sector. Our loyal, dedicated and skilled workforce, along with investment in apprenticeship schemes, is a key part of the Group's continued success.
Conclusion
I am delighted to be able to report such positive news and I would once again like to thank all of our employees for their hard work and contribution to another period of strong performance for the Group.
Steve Roberts
Executive Chairman
8 November 2016
Consolidated statement of comprehensive income
for the six-month period ended 30 September 2016
Hot Features
Premium
6 months 6 months
ended ended Year ended
30 September 30 September 31 March
2016 2015 2016
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Revenue 20,878 19,569 36,466
Cost of sales (16,148) (15,212) (27,542)
------------- ------------- -----------
Gross profit 4,730 4,357 8,924
Other operating income 13 9 25
Administrative expenses
------------- ------------- -----------
Share based payment (8) (7) (15)
Other administrative
expenses (3,496) (3,281) (6,830)
------------- ------------- -----------
(3,504) (3,288) (6,845)
------------- ------------- -----------
Operating profit 1,239 1,078 2,104
Finance income - 3 2
Finance costs (96) (145) (229)
------------- -----------
Profit before income
tax 1,143 936 1,877
Income tax expense (228) (187) (423)
------------- ------------- -----------
Profit for the period 915 749 1,454
============= ============= ===========
Total comprehensive
income attributable
to equity holders
of the parent 915 749 1,454
============= ============= ===========
Earnings per share
from continuing operations
Basic earnings per
share 5.2p 4.2p 8.2p
Diluted earnings
per share 5.1p 4.2p 8.1p
Consolidated statement of changes in equity
for the six-month period ended 30 September 2016
Capital
Share redemption Share Merger Retained Total
capital reserve premium reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 April 2015 184 6 5,169 10,371 5,328 21,058
Total comprehensive
income for the period
Profit for the period - - - - 749 749
Transactions with owners,
recorded directly in
equity
Equity settled share-based
payment transactions - - - - 7 7
Equity dividends paid - - - - (265) (265)
--------- ------------ --------- --------- ---------- --------
At 30 September 2015 184 6 5,169 10,371 5,819 21,549
========= ============ ========= ========= ========== ========
At 1 April 2015 184 6 5,169 10,371 5,328 21,058
Total comprehensive
income for the year
Profit for the year - - - - 1,454 1,454
Transactions with owners,
recorded directly in
equity
Equity settled share-based
payment transactions - - - - 15 15
Equity dividends paid - - - - (265) (265)
--------- ------------ --------- --------- ---------- --------
At 31 March 2016 184 6 5,169 10,371 6,532 22,262
========= ============ ========= ========= ========== ========
At 1 April 2016 184 6 5,169 10,371 6,532 22,262
Total comprehensive
income for the period
Profit for the period - - - - 915 915
Transactions with owners,
recorded directly in
equity
Equity settled share-based
payment transactions - - - - 8 8
Equity dividends paid - - - - (353) (353)
--------- ------------ --------- --------- ---------- --------
At 30 September 2016 184 6 5,169 10,371 7,102 22,832
========= ============ ========= ========= ========== ========
Consolidated balance sheet
at 30 September 2016
30 September 30 September 31 March
2016 2015 2016
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Assets
Property, plant and
equipment 3,004 2,688 2,881
Intangible assets 21,350 21,352 21,351
Total non-current assets 24,354 24,040 24,232
Inventories 1,094 793 976
Trade and other receivables 9,384 8,929 7,239
Prepayments 421 408 289
Deferred consideration
receivable - 18 -
Cash and cash equivalents 2,022 903 1,898
Total current assets 12,921 11,051 10,402
------------- ------------- ---------
Total assets 37,275 35,091 34,634
============= ============= =========
Equity
Share capital 184 184 184
Capital redemption reserve 6 6 6
Share premium 5,169 5,169 5,169
Merger reserve 10,371 10,371 10,371
Retained earnings 7,102 5,819 6,532
Total equity attributable
to equity holders of
the Company 22,832 21,549 22,262
============= ============= =========
Liabilities
Loans and borrowings 142 4,135 119
Deferred tax liabilities 213 139 213
Total non-current liabilities 355 4,274 332
------------- ------------- ---------
Loans and borrowings 4,168 1,042 4,607
Trade and other payables 9,353 7,774 7,090
Current tax payable 567 452 343
Total current liabilities 14,088 9,268 12,040
------------- ------------- ---------
Total liabilities 14,443 13,542 12,372
============= ============= =========
Total equity and liabilities 37,275 35,091 34,634
============= ============= =========
Consolidated statement of cash flows
for the six-month period ended 30 September 2016
6 months 6 months
ended ended Year ended
30 September 30 September 31 March
2016 2015 2016
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Operating profit for
the period 1,239 1,078 2,104
Adjustments for:
Depreciation 259 249 529
Amortisation 1 1 2
Loss on sale of property,
plant and equipment 9 9 16
Equity settled share-based
payment transactions 8 7 15
------------- ------------- -----------
1,516 1,344 2,666
Change in inventories (118) 56 (127)
Change in trade and
other receivables (2,145) 817 2,427
Change in prepayments (132) (185) 14
Change in trade and
other payables 2,263 (594) (1,278)
------------- ------------- -----------
Cash generated from
operations 1,384 1,438 3,702
Interest received - 3 2
Interest paid (96) (145) (229)
Tax paid (4) (40) (311)
------------- ------------- -----------
Net cash flow from operating
activities 1,284 1,256 3,164
------------- ------------- -----------
Cash flows from investing
activities
Proceeds from the sale
of property, plant and
equipment 167 104 212
Proceeds from subsidiary
disposal - 125 143
Acquisition of property,
plant and equipment (405) (297) (813)
------------- ------------- -----------
Net cash from investing
activities (238) (68) (458)
------------- ------------- -----------
Cash flows from financing
activities
Repayment of borrowings (451) (423) (848)
Payment of finance lease
liabilities (118) (99) (197)
Equity dividends paid (353) (265) (265)
Net cash from financing
activities (922) (787) (1,310)
------------- ------------- -----------
Net increase in cash
and cash equivalents 124 401 1,396
Cash and cash equivalents
at start of period 1,898 502 502
Cash and cash equivalents
at end of period 2,022 903 1,898
============= ============= ===========
Notes to the Financial Statements
1. Basis of preparation
The consolidated interim financial information has been prepared in accordance with the accounting policies that are expected to be adopted in the Group's full financial statements for the year ending 31 March 2017 which are not expected to be significantly different to those set out in Notes 2 and 3 of the Group's audited financial statements for the year ended 31 March 2016, other than as disclosed in Note 2. These are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) and are effective at 31 March 2017 or are expected to be adopted and effective at 31 March 2017. The financial information has not been prepared (and is not required to be prepared) in accordance with IAS 34. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of this financial information.
The financial information in this statement relating to the six months ended 30 September 2016 and the six months ended 30 September 2015 has neither been audited nor reviewed pursuant to guidance issued by the Auditing Practices Board. The financial information for the year ended 31 March 2016 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for the year ended 31 March 2016 have been filed with the Registrar of Companies. The Independent Auditor's Report on the Annual Report and Financial Statements for the year ended 31 March 2016 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
2. Changes in accounting policies
From 1 April 2016 the following standards, amendments and interpretations became effective and were adopted by the Group:
-- IAS 1 (Amendment) 'Presentation of Financial Statements' - Disclosure initiative;
-- IAS 16 (Amendment) 'Property, Plant and Equipment' and IAS 38 (Amendment) 'Intangible Assets' - Clarification of acceptable methods of depreciation and amortisation;
-- IAS 27 (Amendment) 'Separate Financial Statements' - Equity method in separate financial statements;
-- IFRS 10 (Amendment) 'Consolidated Financial Statements', IFRS 12 (Amendment) 'Disclosure of Interest in Other Entities' and IAS 28 (Amendment) 'Investments in Associates and Joint Ventures' - Investment entities: Applying the consolidation exception;
-- IFRS 11 (Amendment) 'Joint Arrangements' - Accounting for acquisitions of interests in joint operations; and
-- Annual Improvements to IFRS (2012 -2014).
The adoption of the above has not had a significant impact on the Group's profit for the period or equity.
3. Taxation
The taxation charge for the six months ended 30 September 2016 is calculated by applying the Directors' best estimate of the annual effective tax rate to the profit for the period.
4. Earnings per share
Basic earnings per share is the profit for the period divided by the weighted average number of ordinary shares outstanding, excluding those held in treasury, calculated as follows:
6 months 6 months
ended ended Year ended
30 September 30 September 31 March
2016 2015 2016
Unaudited Unaudited Audited
Profit for the period
(GBP'000) 915 749 1,454
Weighted average number
of ordinary shares excluding
shares held in treasury
for the proportion of
the year held in treasury
('000) 17,670 17,670 17,670
Basic earnings per share 5.2p 4.2p 8.2p
The calculation of diluted earnings per share is the profit for the period divided by the weighted average number of ordinary shares outstanding, after adjustment for the effects of all potential dilutive ordinary shares, excluding those in treasury, calculated as follows:
6 months 6 months
ended ended Year ended
30 September 30 September 31 March
2016 2015 2016
Unaudited Unaudited Audited
Profit for the period
(GBP'000) 915 749 1,454
Weighted average number
of ordinary shares excluding
shares held in treasury
for the proportion of
the year held in treasury
('000) 17,670 17,670 17,670
Effect of potential
dilutive ordinary shares
('000) 191 225 211
Diluted weighted average
number of ordinary shares
excluding shares held
in treasury for the
proportion of the year
held in treasury ('000) 17,861 17,895 17,881
============= ============= ===========
Diluted earnings per
share 5.1p 4.2p 8.1p
5. Principal risks and uncertainties
The directors consider that the principal risks and uncertainties which could have a material impact on the Group's performance in the remaining six months of the financial year remain the same as those stated on pages 7 to 9, and 52 to 56 of our Annual Report and Financial Statements for the year ended 31 March 2016, which are available on our website, www.northernbearplc.com.
6. Half year report
The condensed financial statements were approved by the Board of Directors on 8 November 2016 and are available on the Company's website, www.northernbearplc.com. Copies will be sent to shareholders and are available on application to the Company's registered office.
For and on behalf of the Board of Directors
Thomas Hayes
Finance Director
8 November 2016
-ENDS-
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR").
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR AKODDFBDDBDK
(END) Dow Jones Newswires
November 08, 2016 02:00 ET (07:00 GMT)
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