TIDMNTBR
RNS Number : 3560Z
Northern Bear Plc
21 May 2021
21 May 2021
Northern Bear plc
("Northern Bear" or the "Company")
Trading Update and Notice of Results
The board of directors of Northern Bear (NTBR) (the "Board")
hereby provides an update on trading for the Company and its
subsidiaries (together the "Group") for the year ended 31 March
2021 ("FY21"), the year end cash position, and the outlook for the
coming year ending 31 March 2022 ("FY22").
This update is provided subject to finalisation of our audited
results for FY21. The Group's unaudited preliminary results for
FY21 are expected to be released in the week commencing 19 July
2021.
Trading update
We have provided several updates on trading for FY21, most
recently as part of our interim results for the six month period
ended 30 September 2020 ("H1 FY21") released on 25 November 2020.
As part of that update, we noted substantial disruption to H1 FY21
activity levels from COVID-19, and that, subject to a continued
ability to fulfil contracts on site, we had a strong forward order
book that should support stronger operating performance in the six
month period ended 31 March 2021 ("H2 FY21"), subject to the
uncertainty at that time over the extent of the second wave of
COVID-19 infections and associated restrictions.
Whilst we have experienced some ongoing disruption from the
severity of the COVID-19 second wave, we expect to report
profitability from underlying trading in H2 FY21 to be in line with
H2 FY20 for the Group as a whole. This performance is testament to
the hard work and commitment of all our employees, and the
first-class safety procedures which our safety team have
implemented, which have minimised on-site disruption during the
pandemic.
Northern Bear Roofing
Despite on-site restrictions, our Roofing division has performed
well in H2 FY21. Whilst there was some weather-related disruption
in a very wet February, in general there was no repeat of FY20's
severe winter weather.
We are delighted to announce that Keith Muldoon has been
appointed to oversee the Group's Roofing division as part of
longer-term succession planning. Keith was Managing Director at
Springs Roofing Limited since its acquisition by the Company in
2006 and has demonstrated outstanding leadership of that business
in recent years. Matty Rowley has replaced Keith as Managing
Director at Springs Roofing Limited, having previously served as
Operations Director.
Northern Bear Construction
Our Construction division has seen a more mixed performance in
H2 FY21.
We are pleased to report that MGM, our specialist construction
and refurbishment business, has performed exceptionally well
following the appointment of Phil Burridge as Managing Director in
August 2020 and had an excellent finish to the year. Phil was
brought into MGM to allow Neil Jukes to focus on continuing to
develop Northern Bear Building Services, where Neil and the team
have expanded the business over time and are seeing further
opportunities for growth.
H Peel, our fit out and interiors business, has seen a major
impact on its core hospitality and leisure markets due to COVID-19
restrictions and has continued to experience very challenging
trading conditions in H2 FY21. We recorded an impairment of the
goodwill and intangible assets related to H Peel in our interim
results to 30 September 2020. We are cautiously hopeful of an
improvement in these core markets as the current year
progresses.
J Lister, our electrical contractor, traded well over the autumn
but has experienced COVID-19 related disruption in recent months
due to the indoor nature of works, which has impacted profitability
for H2 FY21. In light of current order book levels, we are hopeful
that trading at J Lister will improve significantly in the coming
year.
Northern Bear Materials Handling
Our Materials Handling business, A1 Industrial Trucks ("A1"),
has also seen disruption to new truck sales and its ability to
deliver maintenance and service works on site during H2 FY21,
although the long-term hire revenue streams have helped support
this business. We are again hopeful of an improvement in trading at
A1 as COVID-19 restrictions are eased moving forward.
Year end cash position
The Group reported net cash of GBP0.6m at 30 September 2020 (31
March 2020: net cash GBP0.2m). Since then, our cash position has
remained strong and, whilst it reflects only a snapshot in time and
our working capital requirements change on a daily basis, the Group
had a substantial net cash position as at 31 March 2021 of
GBP2.1m.
We have made limited use of our committed GBP1m overdraft and
GBP3.5m revolving credit facility in H2 FY21. This financial
position and bank facility headroom provides us with ample cash
resources for the Group's strategic and operational requirements as
we look ahead to the coming financial year and beyond with renewed
optimism.
Outlook
Whilst we are relatively early into the new financial year, the
forward order book remains strong and should support our trading
performance in the coming months, subject to a continued ability to
fulfil contracts on site while a level of uncertainty over the long
term outlook for COVID-19 and short term supply chain pressures
remain challenges for our business.
Assuming no further significant disruption or margin impact from
COVID-19 or supply chain pressures, our current expectation is for
a resumption of more 'normal' trading and profitability levels,
closer to those seen in financial years prior to FY21.
Steve Roberts, Executive Chairman of Northern Bear, commented
:
"FY21 has been a turbulent year for all companies in our
sectors. Whilst we have obviously experienced severe difficulties
within certain businesses within the Group, others have performed
exceptionally well, particularly in H2 FY21, given the backdrop
against which they have had to, and continue to, operate.
I would like to congratulate Keith Muldoon and Matty Rowley on
their new roles and wish them every success. The work of the
Executive Team and all subsidiary management teams has been
outstanding during this period. All businesses managed to control
costs, preserve cash and maximise the opportunities which were
available during these unprecedented times and the resulting
difficulties in working conditions."
For further information, please contact:
Northern Bear PLC
Steve Roberts - Executive Chairman
Tom Hayes - Finance Director +44 (0) 166 182 0369
Strand Hanson Limited (Nominated Adviser and Broker)
James Harris
James Bellman +44 (0) 20 7409 3494
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