11th Jul 2016 08:15
LONDON (Alliance News) - Building services company Northern Bear PLC on Monday said its pretax profit was flat in its financial year to the end of March, despite revenue falling due to flooding in the north of England in late 2015.
Northern Bear said its pretax profit for the year to March 31 was GBP1.9 million, flat year-on-year. Revenue declined to GBP36.5 million from GBP41.7 million but this was offset on the profit line by reductions in operating and finance costs.
The fall in revenue was driven by the flooding in the north of England, which "seriously affected" the ability of Northern Bear to carry out site work, particularly in its roofing division. The impact was mitigated in part by Northern Bear's strategy of only pursuing contracts at good margins.
The company declared a final dividend of 2.0 pence per share, up from 1.5p, reflecting a strong trading performance beyond the flood-related issues and a reduction to the company's bank debt.
Northern Bear said its order book remains strong, and the current financial year has started well, albeit with some issues on contract delays.
Shares in Northern Bear were up 8.1% to 44.88p Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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