Northbridge Industrial Services PLC Trading Update (1114E)
February 07 2018 - 2:00AM
UK Regulatory
TIDMNBI
RNS Number : 1114E
Northbridge Industrial Services PLC
07 February 2018
7 February 2018
Northbridge Industrial Services Plc
("Northbridge" or the "Group")
Trading Update
Northbridge, the industrial services and rental company, is
pleased to issue the following pre-close trading statement in
advance of its preliminary results announcement for the year ended
31 December 2017, which is scheduled to be released during the week
commencing 9 April 2018. Recent trading has been consistent with
the Group's forecasts and, consequently, the Group expects the
results for the full year ended 31 December 2017 to be in line with
management's expectations.
Northbridge has two core activities, Crestchic Loadbanks and
Tasman Oil Tools:
Crestchic is a specialist electrical equipment business which
manufactures and rents loadbanks and transformers from its base in
Burton on Trent. It has depots in France, Germany, Belgium, UAE and
Singapore. It also has satellite locations in China and the
USA.
Tasman Oil Tools rents drilling equipment to the oil, gas and
geothermal industries from its sites in Australia, New Zealand and
the UAE. It has also recently entered a joint venture in Malaysia
with Olio Resources SND BHD ("Olio"), which commenced trading on 1
October 2017, to offer similar services throughout the South East
Asia region. Olio already holds a number of contracts for the
provision of drilling tools to the oil majors in the region and the
JV will have access to Tasman's existing hire fleet. Initial
trading levels are not material on a Group basis but are expected
to begin to benefit Northbridge during 2018 as the industry begins
to recover in the local market.
Within Crestchic, the power reliability side of our European, UK
and USA activities has continued to grow and is being supported by
growth of new markets. We are beginning to access new rental and
sales markets in the USA which are expected to provide a long-term
growth opportunity for Crestchic. In addition, the growth of
renewable power generation in advanced economies is opening a new
market opportunity. It has already provided profitable
opportunities and is expected to continue to do so in the years to
come. Some of our other overseas markets, particularly in the
oilfields and shipyards which use our loadbanks and transformers,
continued to experience lower levels of activity in power projects
during 2017, as we have previously stated, but we do believe these
markets will begin to recover in the medium term.
Sentiment in the oil and gas markets has maintained its gradual
improvement since the end of 2016 and the price of crude oil has
now risen nearer to 2014 levels. Though the pace of recovery in the
drilling industry still remains cautious, confidence in stable
commodity prices and improving cash flow within the industry is
likely to enable the oil majors and the Exploration and Production
companies to increase capital spending during 2018.
The modest improvement in the trend of our oil tool rental
revenues mentioned in our interim results has continued from the
record lows of 2016 and, having taken the necessary steps to
right-size the business, we continue to generate cash.
For further information
Northbridge Industrial Services plc 01283 531645
Eric Hook, Chief Executive Officer
Iwan Phillips, Finance Director
Stockdale Securities Limited (Nominated Adviser and Broker) 020
7601 6100
Robert Finlay / Antonio Bossi / Henry Willcocks
Buchanan Communications 020 7466 5000
Charles Ryland / Stephanie Watson/ Catriona Flint
About Northbridge:
Northbridge Industrial Services plc hires and sells specialist
industrial equipment. With offices or agents in the UK, USA, UAE,
Belgium, Germany, France, Australia, New Zealand, Singapore, China,
Brazil and South Korea, Northbridge has a global customer base.
This includes utility companies, the oil and gas sector, shipping,
banking, mining, construction and the public sector. The product
range includes loadbanks, transformers and oil drilling tools.
Loadbanks provide an effective way of drawing a sizeable and
measurable amount of electrical current and therefore provide the
means of testing the reliability of an electrical power system.
Northbridge was admitted to AIM in 2006 since when it has grown by
providing a high level of service, responsiveness and flexibility
to customers, by the acquisition of companies in the UK, UAE,
Australia, Belgium, New Zealand and Singapore and through investing
further in those acquired companies to make them more successful.
Northbridge continues to seek suitable businesses for acquisition
across the world.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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