Building services specialist Northern Bear said it remains in a strong financial position after continued investment in its operations to support future revenue growth.
Group revenue for the six months to 30 September 2024 was £37.6 million, up slightly from £36.9 million in H1 FY2024, generating a gross profit of £8.9 million (H1: £8.2 million) with an improved gross margin of 23.8 per cent.
The Newcastle upon Tyne-headquartered business turned in an operating profit of £1.7 million, compared to £1.8 million in the first half, following significant investment in its operations, from which it generated £2.2 million in cash reserves.
The group’s forward order book remains strong and should support its trading performance in the coming months, it said.
“The board of directors of Northern Bear is pleased with the group’s performance in the period, with revenue and profits ahead of management expectations,” a trading statement reads.
“We have seen improved gross margins through continued growth in higher margin areas of the group’s businesses, along with continued careful contract selection and management.
“As intended and previously announced, we have continued to invest in our operations to support future revenue growth.”
These include the promotion of Josh Watson to joint managing director of Isoler Limited and the business’ relocation to a larger premises in Durham and launch of a new Southern delivery hub.
Callisto Glass, providing bespoke design, manufacture and installation of architectural glass facades, was made a new division of MGM Limited.
And Alcor Handling Solutions Limited saw continued investment in its materials handling fleet.
“I am pleased to report that we remain in a strong financial position and have continued to make good progress against our medium-term objectives,” said Simon Carr, appointed non-executive chairman of Northern Bear in the summer.
“This has been possible in the main by a combination of continued investment, organic growth and focus on cash generation, which has underpinned the results in the period.”
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