REG - Northern Bear Plc - Trading Update

Northern BearAnnouncement

12/11/2021 07:05

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RNS Number : 1519S  Northern Bear Plc  12 November 2021

12 November 2021

Northern Bear plc

("Northern Bear" or the "Company")

Trading update

 

The board of directors of Northern Bear plc (the "Board") is pleased to
provide an update on trading for the six-month period ended 30 September 2021
("H1 FY22") for the Company and its subsidiaries (together, the "Group").

In our last Annual Report and Accounts published in July 2021, we noted the
industry-wide challenges with respect to both availability and price inflation
of construction materials.  There have also been well-publicised challenges
in relation to attracting and retaining employees in the construction
industry.

We have always sought to create long-term value via strong relationships with
all of our Group's key stakeholders.  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.   We have also managed to retain the large majority of our loyal
and high quality workforce, despite the ongoing industry staffing issues.

Despite the impact of these headwinds on our operations, our Group has traded
well in H1 FY22 and we expect to report operating profit, stated prior to
amortization and other adjustments (in the format used in our last full year
results), in the range of £1.4m to £1.5m for the period (H1 FY21: £0.5m)
This would represent an increase on the pre-COVID comparative from H1 FY20 of
£1.4m. As at 30 September 2021, the Group had a net cash position of
£0.6m.

Our forward order book remains strong and should support our trading
performance in the coming months, subject to the ongoing supply chain and
staffing challenges noted above and whilst there remains a level of
uncertainty over the long-term outlook for COVID-19.

The above estimates are subject to finalisation of the Group's unaudited
interim results, which are expected to be released in the week commencing 22
November 2021.

 

Jeff Baryshnik, Chairman of Northern Bear, commented:

"We are pleased to announce strong expected operating results for H1 FY22,
despite ongoing industry-wide challenges."

"It is a testament to the executive team and subsidiary operating teams that
H1 FY22 results are expected to exceed those from the comparable pre-pandemic
period of H1 FY20. With a strong forward order book, we are well positioned to
continue to generate a more normalised level of profitability."

 

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

 

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.

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