26th May 2016 07:58
LONDON (Alliance News) - Industrial services and rental company Northbridge Industrial Services PLC on Thursday said trading in its markets remains challenging, though it said it is too early in the year to forecast whether this will have a material impact on its full-year outcome.
Northbridge said conditions in the oil and gas industry have shown no signs of any improvement in activity so far in 2016. Sentiment and activity levels in the sector continue to be weak, with a backdrop of cuts to investment plans, closure and delays on projects. All of the above continues to weigh on Northbridge's trading.
While short-term trading visibility remains challenging, Northbridge said it is still too early in the year to forecast any material changes to the likely turn-out for the full year.
"In maintaining the size and scope of our hire fleet, and with substantial reductions in our overhead costs, our operational gearing has increased and our performance will be highly sensitive to modest improvements in revenue," the company said, adding it remains optimistic it will be well-positioned to benefit when the market turns around.
Shares in Northbridge were down 1.9% to 86.35 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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