25th Nov 2022 09:22
(Alliance News) - Northern Bear PLC on Friday reported a virtually flat interim profit but a strong rise in revenue on on the back of a robust supply chain and solid supplier relationships.
The Newcastle-based building services firm reported a pretax profit of GBP1.36 million in the six months to September 30, slightly lower than GBP1.41 million a year before.
Administrative expenses increased 24% to GBP5.6 million versus GBP4.5 million. Northern Bear explained this rise with with increases in payroll, motor and fuel expenses, insurance costs, and general cost inflation.
Revenue rose 13% to GBP34.0 million from GBP30.0 million.
The company attributed this to its "strong and well-established" supplier relationships that enabled it to work with a robust supply chain to ensure the continuity of supply for contracts.
"Additionally, we have not experienced any slowdown in business to date despite widely publicised concerns about rising interest rates and their potential effects on construction generally and the housing market more specifically," the company noted.
Looking ahead, Northern Bear said that its forward order book remains "strong" and should support a good trading performance for the remainder of the year.
Shares were up 6.0% at 48.25 pence each on Friday morning in London.
By Abby Amoakuh; [email protected]
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