Northbridge Industrial S... Share Discussion Threads

[nurdin] 04/2/2013 10:03

Dont miss the second leg up markt :o)

[nurdin] 04/2/2013 09:01

Still trading at 9.3x 2013 earnings which compares with AGKs 17x....although a direct comparison may not be strictly appropriate.Nevertheless NBI are still way undervalued imo

[cfro] 04/2/2013 08:51

Well done IC2 on your superb timing here. :-)

[interceptor2] 04/2/2013 08:29

Mida tip seems to be attracting alot of small buys, and pushing the price over 300p. Pleased I brought back in on Thursday.

Have always liked the sector and business model of NBI, feels like after an 18 month consolidation period that NBI are ready for the next growth stage now.

ic2...

[nurdin] 03/2/2013 19:54

Couldnt agree more.Only wish I had added far more than I did last Friday !

[interceptor2] 03/2/2013 19:52

That's a nice write up in The Mail, should see a good rise Monday morning, in this sort of market. I thought the rise on Thursday seemed a bit muted considering the bullish tone of the trading update.

2013 PER of 7.7, for a company who has average net margins of over 12% is too low imo.

ic2...

[asagi] 03/2/2013 18:51

The City says that Midas is THE most influential newspaper column for smallcap companies and the most likely to deliver a rise.

Asagi (long NBI)

[0rb1t] 03/2/2013 18:37

MIDAS SHARE TIPS: Emergency power firm's profits triple as the need for reliable energy increases
By JOANNE HART
PUBLISHED: 22:36 GMT, 2 February 2013 | UPDATED: 11:45 GMT, 3 February 2013

For most people, power cuts are a frustration. But for energy companies, big businesses and data centres, they can result in serious financial damage, and for hospitals they can be a matter of life and death.
To protect themselves, large organisations have emergency generators that come into play immediately the power goes out. Northbridge Industrial Services makes special kit that tests these back-up generators to ensure they kick in when they are supposed to. The business has grown rapidly since joining AIM in 2006 and its prospects are strong. At 277p, the shares have real potential.

The company, based in Burton-upon-Trent, Staffordshire, was founded by Eric Hook, who has spent most of his career turning companies round and building them up into successful, profitable enterprises.


He is taking Northbridge down the same road, expanding the business organically and by a series of well-timed acquisitions. Between 2007 and 2011, turnover more than doubled, profits tripled and the dividend increased 66 per cent.
For the year just ended, brokers predict turnover will have risen from £25 million to £30 million and profits from £4.6 million to more than £5 million. They expect the dividend to go up from 5p to 5.4p.

Northbridge, although relatively small, is the largest supplier in the world of pieces of equipment called loadbanks. These are designed to test and service every type of power source, including generators, turbines and batteries. Customers range from banks to hospitals and from aircraft makers to energy providers.
In some cases, Northbridge simply sells its equipment. Most of the time, the products are rented out and Northbridge provides servicing teams to run the right tests.

The business has come on at a rate of knots in recent years as mains power is never completely secure and back-up generators are useless if they have been left unused on a rooftop for years and no longer operate as they should.
Northbridge's testing equipment and services provide customers with peace of mind, particularly if they are operating in remote parts of the world where power supply is erratic.
When Hook set up the company a decade ago, his strategy was straightforward – to buy specialist industrial equipment businesses offering tools and services that were not readily available elsewhere, integrate them into a single company and offer complementary services to customers globally.
He has pursued that strategy single-mindedly, making eight acquisitions since 2006 and adding several new strings to the firm's bow.

Northbridge now supplies transformers that work alongside the loadbanks, enabling voltages to be changed.
It also rents out compressed air units and diesel generators to large industrial businesses and leases more than 4,000 specialised products to the oil and gas industry, ranging from mud pumps to torque wrenches.
Further acquisitions are expected over the next couple of years.
Meanwhile, the group has invested substantially in its existing businesses, spending more than £6 million last year, expanding its Burton factory and buying more products for rental.
Last week, Hook said trading in the second half of 2012 had been at record levels and the momentum has continued in this year.

Midas verdict: Northbridge Industrial Services is a clever little business that is destined to become much larger over the next few years. Buy now while the shares are undervalued.

[battlebus2] 03/2/2013 12:37

Great news £3 very soon i hope :))

[kerrie3] 03/2/2013 12:17

I see we got a positive write up in the Financia Mail today and i was about to bank my short term profits.

[nurdin] 03/2/2013 11:34

GHF...perhaps time to get back in again? :o)

[nurdin] 03/2/2013 10:56

Well well well....tipped by Midas in MoS today....:o)

[nurdin] 01/2/2013 10:26

Added a few more on spreadbet...look too cheap to me

[pyemckay] 31/1/2013 21:07

from WH Ireland today;


Northbridge Industrial Services (NBI) – Buy – Positive update

Market Cap £42.6m Price 269p Target 350p

- This morning's update confirms that NBI enjoyed a "record" H2, with good progress across the board and delayed contracts coming through. Momentum has continued into Q1, and forecasts are reaffirmed.

- With strong sales of loadbanks already in the mix, we expect rental to have improved also in the second half, helped by scale efficiencies at Burton on Trent.

-The reliability of back up power continues to be a vital, fundamental driver for NBI's products, as it is ever more obvious that generators need to be tested in hospitals, datacentres, financial operations and elsewhere.

- The shares have staged a recovery from the lows, but we still believe offer significant upside opportunity, from the current modest 8.2x PE and 5.4x EV/EBITDA rating for 2013, well below the rental cluster despite the technical advantages which NBI holds.

[markt] 31/1/2013 12:12

David Marshall ...non-exec. of company that went into administration ....and does not advise NBI and produce a RNS until 2.5 months later !!

(and noting that a David Marshall controlled company provides company secretary services to listed companies.....so they know the rules....(they were the NBI co. secretary until imo 2012)

"David Marshall, Non-Executive Director of the Company, has confirmed to the Company, on 29 January 2013, that MWB Group Holdings plc, a company of which he was a director, was placed into administration on 16 November 2012"

David Marshall has now been a director at companies where his vehicle has invested and seen 3 of them de-listed and go into administration
Doctors Direct (non-exec. chairman)
Sanctuary Group
MWB

approx. a 50% failure rate at active companies !, also a non-exec director at FIF, NBI and CRE.

D.Marshall family trusts control LFI and WSE (via LFI)....both at same NAV as they were 15-20 years ago.....while investing funds in the same sector have multiplied by 4.

It could be questioned imo whether D.Marshall is breaking the Company Act by operating LFI & WSE for the benefit of the Marshalls (such as employing at least 1 son on directors wages (3/4M pnds over 10 years, large % of company income), expenses (and not reporting it to shareholders)....and only investing in cos. where board position and income can be obtained for a Marshall) rather than for the general shareholders, as reqd. by law......and that strategy or limitation has produced bad results for shareholders, but very good annual return on investment cost for the Marshalls, for decades. (3rd generation about ready to take over !)
-----

Noting that these notes dont impact directly on NBI.
and well done NBI, .... good RNS.

[nurdin] 31/1/2013 10:19

Consensus for next year is 35p which I think will be upgraded.They did 20p in H2 this year so all they have to do is to sustain that over H!/H2 this financial year to smash the current forecasts

Looks like they have wind in their sails now..

[woodcutter] 31/1/2013 09:25

GHF

Sorry to see you missed the upside. I think your comparison with the Aggreko results was a little unfortunate, i'm sure without that you'd still be here.

I still think there's more upside and will continue to hold on the back of the TS.

Woody

post note
On an historic per basis of about 8/9 and looking forward at 32p earnings the share price is possibly up with events. perhaps a little undervalued given the growth potential. It's risen quite steeply recently but any pull back would be a good opportunity to add.

[asagi] 31/1/2013 09:09

All investors needed to believe in was:

1. the broker forecasts
2. what management had been saying, ever since the H1:H2 skew was reported

someone looking for a quick return may also have needed to believe that a January statement would be forthcoming. Remember, Northbridge did NOT have to issue today's RNS: some 'orrible companies I have been invested in in the past would not.

Now that is 2012 out of the way we can look to 2013: consensus is for 32.4p of earnings.

Asagi (long NBI)

[glasshalfull] 31/1/2013 08:52

Strong update with plenty of upside.

GLA

Regards
GHF

[woodcutter] 31/1/2013 08:40

with a little effort we might have a breakout through the 300p barrier and into a new trading range.

WC

[interceptor2] 31/1/2013 08:40

Brought back in today to an old favourite which I first held in 2009.

Have been watching closly for news that would allow me to buy, todays trading update confirms that what they said in September about H2 was correct. Cashflow sounds strong now and benefiting from investments in hire fleet, tone seemed pretty upbeat about prospects for 2013.

ic2...

[countryman5] 31/1/2013 08:29

I will be interesting to see year 13/ 14 EPS forecast. Will it be in the 30 - 35p range?

[battlebus2] 31/1/2013 08:00

Yes very good update although some of it is carried over though trading is as expected.