Building services company Northern Bear has published a trading update for the year ended 31 March 2023.
- Revenue increased 14.1% to £69.7 million (FY2022: £61.1 million)
- Operating profit increased to £2.2 million (FY2022: £0.7 million operating loss)
- Adjusted EBITDA* increased 13.9% to £4.1 million (FY2022: £3.6 million)
- Adjusted operating profit* increased 13.4% to £2.9 million (FY2022: £2.6 million)
- Adjusted basic earnings per share* increased 19.4% to 11.7p (FY2022: 9.8p)
- Cash from operations increased 28.9% to £2.8 million (FY2022: £2.2 million)
- Net cash (at year end): £3.2 million (FY2022: £2.2 million)
- One-off contract losses relating to Arcas Building Solutions Limited (formerly Northern Bear Building Services) of £0.7 million (FY2022: £nil)
Despite rising interest rates, the Group said it “has not experienced any slowdown in business” to date during FY2023 and has seen “strong” operating results.
The Group will pursue a dividend growth strategy supported by organic growth and bolt-on acquisitions, it said.
It will declare an ordinary dividend of 4p per share, plus a special dividend for FY2023 of 1p per share.
“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,” said the Group.
John Davies was made managing director of Arcas Building Solutions Limited. His previous roles include managing director of Meldrum Group and chief operating officer of Esh Group.
Early indications suggest FY2024 will progress in a similar manner to FY2023, for the financial year to date.
Eased inflationary pressures on materials costs should lead to “improved visibility on near-term profitability”.
Forward order book remains strong, said the Group.
“We are delighted to announce one of the strongest full year adjusted operating profits reported in the history of Northern Bear and are excited to implement our dividend growth strategy. We look forward to providing further updates to our shareholders and the wider investment community during the second half of 2023,” said Jeff Baryshnik, non-executive chairman of Northern Bear.
* stated prior to the impact of impairments, amortisation, Arcas contract losses and other one-off costs.
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