25th Nov 2019 09:40
(Alliance News) - Northern Bear PLC said Monday its profit and revenue dropped in the first half of its financial year, as a challenging first quarter slowed by contract delays weighed on performance.
For the six months to the end of September, the building services firm reported pretax profit of GBP1.2 million, down 25% from GBP1.6 million the year before, on revenue that declined by 2.8% to GBP27.8 million from GBP28.6 million.
Northern Bear said its performance was affected by a slow first quarter, due to contract delays which it said were beyond the company's control.
This kept Northern Bear's interim results weaker, even as the second quarter was much stronger as these delayed contracts started within the period.
The company did not declare an interim dividend, as it prefers to distribute only a final payout, it said.
Looking ahead, Northern Bear said it continues to hold a high level of committed orders; however there is limited short-term visibility as to when these orders will be realised.
Even so, the strong momentum in the second quarter has continued into the second half of the financial year, leaving the company's outlook positive, despite macro-economic uncertainty.
"Following a frustratingly slow first financial quarter to June 30, resulting from contract delays, we have experienced a much stronger second quarter to September 30, with excellent results across the group having been achieved since July," said Executive Chair Steve Roberts.
"The group continues to hold a significant order book, and we consider the outlook for the second half of the current financial year to be positive. Accordingly, I am hopeful of reporting another strong set of full year results," Roberts added.
Shares in Northern Bear - which is headquartered in Newcastle - were down 6.7% at 68.08 pence on Monday in London.
By Dayo Laniyan; [email protected]
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