5th Feb 2019 11:24
LONDON (Alliance News) - Northbridge Industrial Services PLC said Tuesday it should meet annual expectations with both units performing solidly.
Recent trading has improved year-on-year, Northbridge said, meeting its own forecasts.
Northbridge has two segments: loadbank and transformer maker Crestchic and drilling equipment firm Tasman Oil Tools.
Crestchic continues to do well in the UK and Europe, Northbridge said, with rental revenue improving in 2018. New markets in the US and the growth of renewable power in developing economies will provide further opportunities going ahead, it added.
In the US, where trading began in 2016, the business continues to grow, and Northbridge is hopeful an improvement in other overseas territories will continue into 2019.
Crestchic, Northbridge added, has started 2019 with its "largest ever new year order book".
Activity for Tasman is improving, the company continued, with year-on-year revenue showing "significant" gains in large parts in the market, though Northbridge did concede they are improving on a low base.
Tasman made a "significant" hire fleet purchase during 2018, paying a maximum of GBP3.1 million to buy oil tools of a liquidated Asia-Pacific competitor.
"The equity placing earlier in 2018 reduced gearing and strengthened the group's balance sheet noticeably, even allowing for the acquisition of the hire fleet above," said Northbridge.
"Trading cash flow has also begun to improve and, alongside the fundraising, has put the group in a strong position for the future. We are more confident in the resilience of the recovery in our markets, despite the recent dips in the oil price, and we expect further good progress to be made during 2019."
Shares were up 4.6% on Tuesday at a price of 117.70 pence each.
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