13th Jul 2015 08:24
LONDON (Alliance News) - Northern Bear PLC shares rose after it reported a small rise in pretax profit for the last financial year and a substantial reduction in net debt, leading it to double its dividend.
Northern Bear shares were up 9.1% to 54.00 pence Monday morning, having touched 55.90p earlier.
The building services company reported a small rise in pretax profit for the year ended March 31 to GBP1.9 million from GBP1.8 million a year earlier, as revenue rose to GBP41.7 million from GBP36.8 million. That resulted in basic earnings per share of 8.5 pence compared to 7.6 pence.
Northern Bear declared a final dividend of 1.5 pence per share for the full-year, which is double the 0.75 pence paid a year earlier.
"Whilst continuing to reward shareholders through dividend payments and further reducing bank debt, the group remains well placed to take advantage of acquisition opportunities as and when they arise," said Exectuive Chairman Steve Roberts.
Net bank debt at the end of the financial year had fallen to GBP4.8 million from GBP5.6 million.
"The board's priority in recent years, even whilst trading conditions have been challenging, has been to use operating cash flow to reduce bank debt levels. Whilst this remains our overall priority, we will continue to monitor opportunities for other uses of funds generated, including capital investment, bolt-on acquisitions and capital repurchases," said the company.
"Current order book levels remain very strong across the group and the new financial year has started well. Whilst there was a downturn in project commencement pending the outcome of the recent UK General Election, the company was well positioned to capitalise on future work irrespective of the outcome of that election," it added.
By Joshua Warner; [email protected]; @JoshAlliance
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