Northern Bear Plc Trading Update (2032Q)
June 27 2022 - 2:00AM
UK Regulatory
TIDMNTBR
RNS Number : 2032Q
Northern Bear Plc
27 June 2022
27 June 2022
Northern Bear plc
("Northern Bear" or the "Company")
Trading Update, Strategy Update, and Notice of Results
The board of directors of Northern Bear (NTBR) (the "Board")
provides an update on trading for the Company and its subsidiaries
(together, the "Group") for the year ended 31 March 2022 ("FY22"),
the financial year-end cash position, and the ongoing business
strategy review.
This update is provided subject to finalisation of our audited
results for FY22. The Group's unaudited preliminary results for
FY22 are expected to be released in the week commencing 18 July
2022.
Trading update
In the interim report for the six months to 30 September 2021
("HY22"), we noted the industry-wide challenges with respect to
both the availability and price inflation of construction
materials, along with the well-publicised issues with attracting
and retaining employees in our industry.
Despite the impact of these headwinds, we reported that our
Group generated strong operating results in HY22. Our companies
have strong and well-established supplier relationships and have
been able, on the whole, to work with our robust supply chain to
ensure continuity of supply for contracts.
This situation has continued through the second half of FY22,
and the Group has generated strong operating results that continue
to exceed those from the prior year to 31 March 2021 ("FY21"), as
well as those from the comparable pre-pandemic year to 31 March
2020 ("FY20").
The Board's current expectation, subject to audit finalisation,
is that operating profit for FY22, stated before amortisation,
one-off costs and other adjustments (in the format used in prior
years' results), will be in the range of GBP2.5 million to GBP2.6
million.
Year-end cash position
The Group reported net cash of GBP0.6 million as at 30 September
2021 (31 March 2021: net cash GBP2.1 million). 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 2022 of GBP2.2 million.
Our cash position is often at a high point at year-end due to
the timing of working capital movements. These have, to an extent,
reversed post year-end and we have on occasion made use of our
GBP1.0 million overdraft facility and up to GBP0.5 million of our
revolving credit facility although the Group's financial position
remains strong.
We retain our committed GBP1 million overdraft and GBP3.5
million revolving credit facility with Virgin Money plc. This
financial position and bank facility headroom provides us with
ample cash resources for the Group's current strategic and
operational requirements as we look ahead to the coming financial
year with optimism.
Strategy update
Following Board changes in 2021, including Jeff Baryshnik's
appointment as Non-Executive Chairman, Jeff commenced a process of
engaging with the Board and management to discuss and review the
Group's strategy and approach to capital allocation.
This review remains ongoing and in recent months we have
assessed two potentially accretive acquisitions of a more
substantial size than those we have made previously, which
ultimately did not come to fruition. We continue to explore avenues
for increasing shareholder value.
Jeff Baryshnik, Non-Executive Chairman of Northern Bear,
commented:
"We are pleased to announce strong expected operating results
for FY22, despite ongoing headwinds ."
"It is a testament to the executive team and the subsidiary
operating teams that FY22 results are expected to exceed those from
the comparable pre-pandemic period of FY20."
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 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018.
For further information, please contact:
Northern Bear PLC
Jeff Baryshnik - Non-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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END
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