REG - Northern Bear Plc - Strategy, Dividends, and Trading Update

Northern BearAnnouncement

05/04/2023 07:15

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RNS Number : 3747V  Northern Bear Plc  05 April 2023

5 April 2023

 

Northern Bear plc

("Northern Bear" or the "Company")

 

Strategy, Dividends, and Trading Update

 

The board of directors of Northern Bear plc (the "Board") provides an update
on its corporate strategy, dividend policy, and trading for the Company and
its subsidiaries (together, the "Group") for the year ended 31 March 2023
("FY23").

 

This update and the proposed dividend set out below are provided subject to
the finalisation of our audited results for FY23. The Group's unaudited
preliminary results for FY23 are expected to be released in the week
commencing 17 July 2023.

 

Strategy and Dividends

After a review of strategy and dividend policy, the Board is pleased to report
that the Group will pursue a dividend growth strategy supported by the organic
progress of the Group's businesses and, to the extent accretive, bolt-on
acquisitions. To that end, the Group is pleased to announce its intention to
declare an ordinary dividend of 4p per share plus a special dividend for FY23
of 1p per share. Going forward, the ordinary dividend is expected to be paid
semi-annually, with half paid after each of the year-end period and the half
year period, respectively. Additionally, the Company intends to further
increase its engagement with the broader investment community.

 

Trading update

In the interim report for the six months to 30 September 2022 ("HY23"), we
reported that the Group generated strong operating results despite ongoing
industry-wide challenges with respect to attracting and retaining employees in
the construction industry. Based on management information for the eleven
months to February 2023, the Group has traded ahead of the prior year's
results except for a provision at our Northern Bear Building Services Limited
subsidiary, anticipated to be in the range of £500-£750k, to account for
certain unprofitable contracts. The Board expects that operating profit for
FY23, stated before amortisation, one-off costs, and other adjustments (in the
format used in prior years' results, "adjusted operating profit") should
exceed £2.75 million (or £2.0-£2.25 million of reported operating profit
net of the provision), and we anticipate a net cash position for the Group at
year-end. As we have emphasised previously, the net cash or bank debt position
can vary significantly and rapidly given the nature, size, and variety of
contracts and their associated working capital requirements.

 

Jeff Baryshnik, Non-Executive Chairman of Northern Bear, commented:

"We are pleased to announce strong expected operating results for FY23 and are
excited to implement our dividend growth strategy. We look forward to further
engaging with shareholders and the wider investment community to inform them
about the Group."

 

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                                     +44 (0) 166 182 0369

 Jeff Baryshnik - Non-Executive Chairman

 Tom Hayes - Finance Director

 Strand Hanson Limited (Nominated Adviser and Broker)  +44 (0) 20 7409 3494

 James Harris

 James Bellman

 

 

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