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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% | 59.50 | 58.00 | 61.00 | 59.50 | 59.50 | 59.50 | 12,547 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Roof,siding,sheet Metal Work | 69.72M | 1.59M | 0.0850 | 7.00 | 11.14M |
From Apr 2019 to Apr 2024
TIDMNTBR
RNS Number : 9091X
Northern Bear Plc
30 November 2017
30 November 2017
Northern Bear plc
("Northern Bear" or the "Company")
Interim results for the six month period ended 30 September 2017
The board of directors of Northern Bear (the "Board") is pleased to announce its unaudited interim results for the Company and its subsidiaries (together the "Group") for the six months to 30 September 2017.
Highlights
-- Revenue from continuing operations of GBP27.2 million (2016: GBP20.1 million)
-- Adjusted profit before income tax* from continuing operations of GBP1.5 million (2016: GBP1.3 million)
-- Reported profit before income tax from continuing operations of GBP1.3 million (2016: GBP1.3 million)
-- Basic earnings per share from total operations of 5.9p (2016: 5.2p) -- Net bank debt of GBP0.6 million at 30 September 2017 (30 September 2016: GBP2.0 million)
* Adjusted for the impact of non-recurring transaction costs and amortisation of acquired intangibles
Steve Roberts, Executive Chairman of Northern Bear, commented:
"I am pleased to report that the Group has had another six months of strong operational performance. We also completed the acquisition of H Peel, our first acquisition for over nine years. With a strong order book, we are looking forward to the rest of our financial year with optimism and are confident that we will be able to maintain our progressive dividend policy."
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 2017 for Northern Bear plc (the "Company") and its subsidiaries (together the "Group").
In our trading update, released on 7 November 2017, we announced that profit before tax from continuing operations would exceed last year's excellent results, before the impact of non-recurring transaction costs and amortisation of acquired intangibles relating to the acquisition of H Peel & Sons (Holdings) Limited ("H Peel") in July 2017.
Further to that update, I am pleased to confirm the Group's outstanding results for the period. After non-recurring transaction costs and amortisation, the Group generated retained profits from total operations of GBP1.1 million (2016: GBP0.9 million) and basic earnings per share of 5.9p (2016: 5.2p). This included a positive post-acquisition contribution from H Peel.
Trading
During the prior year to 31 March 2017, the Company disposed of Chirmarn Holdings Limited and its subsidiaries (together "Chirmarn"). Results from these companies have, accordingly, been presented as discontinued operations in the results for the prior period to 30 September 2016 and for the year to 31 March 2017.
Turnover from continuing operations for the period increased to GBP27.2 million (2016: GBP20.1 million). Much of the increase was attributable to a strong performance in our Specialist Building Services division, and to the inclusion of revenues generated by H Peel.
Gross profit from continuing operations increased to GBP5.0 million (2016: GBP4.5 million) while gross margin reduced to 18.4% (2016: 22.2%). The Group's Specialist Building Services division typically operates at lower margins than the Roofing and Materials Handling divisions and, hence, the reduction in gross margin is down to a change in sales mix in the period.
The Group continues to be careful in terms of contract selection. I am pleased to report that trading profits were in line or ahead of management expectations at every trading division during the period. This is testament to the hard work of our Group Managing Director, Graham Jennings, our Operations Director, Keith Soulsby, and all of the operational management team.
Administrative expenses, before transaction costs and amortisation, increased to GBP3.5 million (2016: GBP3.1 million). This was largely to support increased activity levels in the period. Operating profit, again, before transaction costs and amortisation, increased to GBP1.6 million (2016: GBP1.4 million).
Cash flow
Net bank debt at 30 September 2017 was GBP0.6 million (30 September 2016: GBP2.0 million net bank debt, 31 March 2017: GBP0.6 million net cash), which was in line with management expectations. The increase in debt from 31 March 2017 relates to both the H Peel acquisition and the payment in the period of last year's final ordinary and special dividends, which totalled GBP0.7 million (2016: GBP0.4 million).
Cash generated from operations was GBP0.9 million in the period (2016: GBP1.4 million), which was impacted by the reversal of some favourable working capital movements in the prior year.
As reported in April 2017, the Group recently negotiated a new revolving credit facility with Yorkshire Bank, which provided us with the flexibility to pursue acquisition opportunities. Following the H Peel acquisition, we extended this facility by a further GBP1 million (to GBP4.5 million). This will provide continued flexibility in this area.
Dividend
The Board has followed a progressive dividend policy in recent years, with continued increases in the final dividend and a special dividend for the year ended 31 March 2017.
Our stated policy is to pay only a final dividend. This is primarily due to the potential impact of exceptional, adverse weather on the Group's trading over the winter months. Provided that the strong trading performance continues for the remainder of the financial year, it is the intention of the Board to continue with our progressive dividend policy.
Strategy
I am delighted that the Group was able to complete the acquisition of H Peel in July 2017. H Peel is an interiors and fit-out business based in Dewsbury, West Yorkshire. It has a blue chip client base spread across the UK and operates primarily in the hotel and leisure sectors.
H Peel met all of our key acquisition criteria, which include a business that is well established in its sector, a consistent track record of profitability and cash generation and a strong management team who are committed to remaining with the business. The acquisition also provides the Group with further sectoral and geographical diversification. The team at H Peel have settled in well and we look forward to sharing in their continued success.
We continue to believe that acquisitions of established specialist building services businesses, either in the same or complementary sectors to our current operations, could further enhance the Group's offering to customers. Although we are presented with potential acquisitions on a regular basis, we will only proceed with such an acquisition opportunity where we are confident that it will meet our criteria, predictably enhance earnings and provide an acceptable return on investment for our shareholders.
Outlook
The Group currently has a high level of committed orders and the Directors are positive about the outlook for trading in the second half of the year, subject to there being no exceptional, adverse weather conditions over the period.
People
The Group's loyal, dedicated and skilled workforce, along with continued investment in training new operatives and apprenticeship schemes, is a key part of our success. Our operational strategy is to directly employ a large majority of the workforce and, with HR responsibilities overseen by Keith Soulsby, the Group continues to invest in training, regardless of short term economic conditions. This is particularly important, given the continued shortage of skilled operatives and cost pressures in our sector.
During the period we were notified by Graeme Tennick, the current Managing Director of A1 Industrial Trucks, our Materials Handling business, that he intends to retire from his role in March 2018. Graeme is co-founder of A1 and has remained with the business for almost ten years since it was acquired by the by the Group in April 2008. We have worked with Graeme to recruit a replacement who has held senior roles in national Materials Handling businesses and, subject to satisfactory performance, he will be appointed Managing Director of A1 on Graeme's retirement. I would like to thank Graeme and his co-founder Derek Wymes (who retired in summer 2016) for their hard work and contribution since joining the Group.
Conclusion
I am, yet again, delighted to be reporting on an excellent trading period and set of results. I would once more like to thank all of our employees for their hard work and contribution to another strong set of results for the Group.
Steve Roberts
Executive Chairman
Consolidated statement of comprehensive income
for the six month period ended 30 September 2017
Hot Features
Premium
6 months 6 months
ended ended Year ended
30 September 30 September 31 March
2017 2016 2017
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Revenue 27,196 20,147 45,563
Cost of sales (22,202) (15,656) (36,256)
------------- ------------- -----------
Gross profit 4,994 4,491 9,307
Other operating income 13 13 25
Administrative expenses (3,453) (3,139) (6,786)
------------- ------------- -----------
Operating profit
(before amortisation
and transaction costs) 1,554 1,365 2,546
Transaction costs (158) - -
Amortisation of acquired
intangibles (26) - -
Operating profit 1,370 1,365 2,546
Finance income - - -
Finance costs (59) (94) (166)
------------- -----------
Profit before income
tax 1,311 1,271 2,380
Income tax expense (249) (253) (386)
------------- ------------- -----------
Profit from continuing
operations 1,062 1,018 1,994
------------- ------------- -----------
Discontinued operations
Loss from discontinued
operations
(net of income tax) - (103) (4,266)
------------- ------------- -----------
Profit/(loss) for
the period 1,062 915 (2,272)
------------- ------------- -----------
Total comprehensive
income / (loss) attributable
to equity holders
of the parent 1,062 915 (2,272)
============= ============= ===========
Basic earnings /
(loss) per share
Continuing operations 5.9p 5.8p 11.3p
Discontinued operations - (0.6)p (24.1)p
------------- ------------- -----------
Total operations 5.9p 5.2p (12.8)p
------------- ------------- -----------
Diluted earnings
/ (loss) per share
Continuing operations 5.9p 5.7p 11.1p
Discontinued operations - (0.6)p (24.1)p
------------- ------------- -----------
Total operations 5.9p 5.1p (13.0)p
------------- ------------- -----------
Consolidated statement of changes in equity
for the six month period ended 30 September 2017
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 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
========= ============ ========= ========= ========== ========
At 1 April 2016 184 6 5,169 10,371 6,532 22,262
Total comprehensive
income for the year
Loss for the year - - - - (2,272) (2,272)
Transactions with owners,
recorded directly in
equity
Equity settled share-based
payment transactions - - - - 14 14
Exercise of share options - - - - 41 41
Equity dividends paid - - - - (353) (353)
Transfers in respect
of discontinued operations - - - (1,140) 1,140 -
--------- ------------ --------- --------- ---------- --------
At 31 March 2017 184 6 5,169 9,231 5,102 19,692
========= ============ ========= ========= ========== ========
At 1 April 2017 184 6 5,169 9,231 5,102 19,692
Total comprehensive
income for the period
Profit for the period - - - - 1,062 1,062
Transactions with owners,
recorded directly in
equity
Equity settled share-based
payment transactions - - - - 1 1
Issue of shares 5 - - - - 5
Exercise of share options - - - - 37 37
Equity dividends paid - - - - (742) (742)
Merger reserve arising
on acquisition - - - 374 - 374
--------- ------------ --------- --------- ---------- --------
At 30 September 2017 189 6 5,169 9,605 5,460 20,429
========= ============ ========= ========= ========== ========
Consolidated balance sheet
at 30 September 2017
30 September 30 September 31 March
2017 2016 2017
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Assets
Property, plant and
equipment 3,007 3,004 2,852
Intangible assets 20,661 21,350 17,458
Total non-current assets 23,668 24,354 20,310
Inventories 1,033 1,094 944
Trade and other receivables 8,881 9,384 8,755
Prepayments 503 421 246
Cash and cash equivalents 2,923 2,022 2,583
Total current assets 13,340 12,921 12,528
------------- ------------- ---------
Total assets 37,008 37,275 32,838
============= ============= =========
Equity
Share capital 189 184 184
Capital redemption reserve 6 6 6
Share premium 5,169 5,169 5,169
Merger reserve 9,605 10,371 9,231
Retained earnings 5,460 7,102 5,102
Total equity attributable
to equity holders of
the Company 20,429 22,832 19,692
============= ============= =========
Liabilities
Loans and borrowings 3,630 142 2,122
Deferred consideration 474 - -
Deferred tax liabilities 307 213 182
Total non-current liabilities 4,411 355 2,304
------------- ------------- ---------
Loans and borrowings 180 4,168 168
Deferred consideration 365 - -
Trade and other payables 10,898 9,353 10,255
Current tax payable 725 567 419
Total current liabilities 12,168 14,088 10,842
------------- ------------- ---------
Total liabilities 16,579 14,443 13,146
============= ============= =========
Total equity and liabilities 37,008 37,275 32,838
============= ============= =========
Consolidated statement of cash flows
for the six month period ended 30 September 2017
6 months 6 months
ended ended Year ended
30 September 30 September 31 March
2017 2016 2017
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Operating profit - continuing
operations 1,370 1,365 2,546
Operating profit - discontinued
operations - (126) (206)
------------- ------------- -----------
Operating profit for
the period 1,370 1,239 2,340
Adjustments for:
Depreciation 265 259 549
Amortisation 26 1 2
(Profit)/Loss on sale
of property, plant and
equipment (3) 9 9
Equity settled share-based
payment transactions 1 8 14
------------- ------------- -----------
1,659 1,516 2,914
Change in inventories (70) (118) 24
Change in trade and
other receivables (52) (2,145) (1,802)
Change in prepayments (205) (132) 29
Change in trade and
other payables (461) 2,263 3,358
------------- ------------- -----------
Cash generated from
operations 871 1,384 4,523
Interest received - - -
Interest paid (59) (96) (166)
Tax paid (106) (4) (341)
------------- ------------- -----------
Net cash flow from operating
activities 706 1,284 4,016
------------- ------------- -----------
Cash flows from investing
activities
Proceeds from the sale
of property, plant and
equipment 94 167 294
Proceeds from subsidiary
disposal - - 25
Acquisition of subsidiary,
net of cash acquired (817) - -
Acquisition of property,
plant and equipment (313) (405) (689)
------------- ------------- -----------
Net cash from investing
activities (1,036) (238) (370)
------------- ------------- -----------
Cash flows from financing
activities
Repayment of borrowings 1,504 (451) (2,441)
Payment of finance lease
liabilities (129) (118) (208)
Proceeds from the exercise
of share options 37 - 41
Equity dividends paid (742) (353) (353)
Net cash from financing
activities 670 (922) (2,961)
------------- ------------- -----------
Net increase in cash
and cash equivalents 340 124 685
Cash and cash equivalents
at start of period 2,583 1,898 1,898
Cash and cash equivalents
at end of period 2,923 2,022 2,583
============= ============= ===========
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 2018 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 2017, 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 2018 or are expected to be adopted and effective at 31 March 2018. 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 2017 and the six months ended 30 September 2016 has neither been audited nor reviewed pursuant to guidance issued by the Auditing Practices Board.
The financial information for the year ended 31 March 2017 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for the year ended 31 March 2017 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 2017 was i) unqualified, ii) did not include any references to any matters to which the auditors drew attention by way of emphasis, without qualifying their report, and iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006.
2. Changes in accounting policies
From 1 April 2017 the following standards, amendments and interpretations became effective and were adopted by the Group:
-- Amendments to IAS 12 'Income Taxes' - Amendments to the recognition of deferred tax assets for unrealised losses;
-- Amendments to IAS 7 'Statement of Cash Flow' - Disclosure amendments;
-- Amendments to IAS 40 'Investment Property' for transfers of Investment Property; and
-- Annual Improvements to IFRS (2014 - 2016).
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 2017 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 or loss 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
2017 2016 2017
Unaudited Unaudited Audited
Profit for the period
(GBP'000) - continuing
operations 1,062 1,018 1,994
Loss for the period (GBP'000)
- discontinued operations - (103) (4,266)
------------- ------------- -----------
Profit / (loss) for the
period (GBP'000) - total
operations 1,062 915 (2,272)
------------- ------------- -----------
Weighted average number
of ordinary shares excluding
shares held in treasury
for the proportion of
the year held in treasury
('000) 17,920 17,670 17,680
Basic earnings per share
- continuing operations 5.9p 5.8p 11.3p
Basic loss per share
- discontinued operations - (0.6p) (24.1p)
------------- ------------- -----------
Basic earnings/(loss)
per share - total operations 5.9p 5.2p (12.8p)
------------- ------------- -----------
The calculation of diluted earnings per share is the profit or loss 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
2017 2016 2017
Unaudited Unaudited Audited
Profit for the period
(GBP'000) - continuing
operations 1,062 1,018 1,994
Loss for the period (GBP'000)
- discontinued operations - (103) (4,266)
------------- ------------- -----------
Profit / (loss) for the
period (GBP'000) - total
operations 1,062 915 (2,272)
------------- ------------- -----------
Weighted average number
of ordinary shares excluding
shares held in treasury
for the proportion of
the year held in treasury
('000) 17,920 17,670 17,680
Effect of potential
dilutive ordinary shares
('000) 188 191 214
Diluted weighted average
number of ordinary shares
excluding shares held
in treasury for the
proportion of the year
held in treasury ('000) 18,108 17,861 17,894
============= ============= ===========
Diluted earnings per
share - continuing operations 5.9p 5.7p 11.1p
Diluted loss per share
- discontinued operations - (0.6p) (24.1p)
------------- ------------- -----------
Diluted earnings/(loss)
per share - total operations 5.9p 5.1p (13.0p)
------------- ------------- -----------
All potential shares were anti-dilutive for discontinued operations in the year ended 31 March 2017 due to the loss reported.
5. Discontinued operations
During the year ended 31 March 2017, the Company disposed of its subsidiary Chirmarn Holdings Limited, along with its wholly owned subsidiaries Chirmarn Limited and Chirmarn (Surveying) Limited (together "Chirmarn"). Chirmarn's principal activities were asbestos removal and surveying services. The disposal was completed on 31 March 2017.
The results of the discontinued operations are included in the Group's consolidated financial information until the date the disposal was completed. These are as follows:
6 months 6 months
ended ended Year ended
30 September 30 September 31 March
2017 2016 2017
Unaudited Unaudited Audited
Revenue - 731 1,370
Expenses - (859) (1,582)
--------------- ------------- -----------
Pre tax trading loss - (128) (212)
Loss on disposal of discontinued
operations - - (191)
Write off of related goodwill - - (3,891)
--------------- ------------- -----------
Loss before income tax - (128) (4,294)
Income tax credit - 25 28
--------------- ------------- -----------
Loss for the period from
discontinued operations - (103) (4,266)
--------------- ------------- -----------
6. Acquisition of H Peel & Sons
On 25 July 2017 the Group acquired 100 per cent of the share capital of H Peel & Sons (Holdings) Limited, including its wholly owned subsidiary H Peel & Sons Limited (together "H Peel").
The initial value of purchase consideration recognised in the consolidated interim financial information is GBP2.3 million, which includes a combination of cash, shares and deferred consideration (an element of which is contingent) recorded at discounted present value. The total amount of intangible assets recognised in the balance sheet at 30 September 2017 is GBP3.2 million. These amounts represent the Directors' provisional estimates of fair values at the date of acquisition and will be finalised as part of the Group's year end reporting for the year to 31 March 2018.
7. 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 page 9, and 55 to 58 of our Annual Report and Financial Statements for the year ended 31 March 2017, which are available on our website, www.northernbearplc.com.
8. Half year report
The condensed financial statements were approved by the Board of Directors on 30 November 2017 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
30 November 2017
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR OKCDPOBDDDDB
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November 30, 2017 02:00 ET (07:00 GMT)
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