18th Jul 2022 11:06
(Alliance News) - Northern Bear PLC on Monday reported a narrowed annual loss but outlined a cautious outlook as increasing costs for construction materials impact the business.
For the financial year that ended March 31, the Newcastle-based building services firm said its pretax loss narrowed to GBP879,000 from GBP1.6 million a year ago. Revenue grew 24% to GBP61.1 million from GBP49.2 million.
The company said in recent months, it considered two acquisitions that would have been profitable, but they "did not come to fruition."
Northern Bear decided against declaring a dividend.
"Any future dividends would be in line with the group's relative performance," it explained.
"Industry-wide challenges continue with respect to both the availability and price inflation for construction materials," the company said.
It added it expected "short-term headwind to operations until industry supply and demand revert to more typical levels."
The firm touted, however: "Our companies have strong and well-established supplier relationships and, on the whole, have been able to work with our robust supply chain to ensure continuity of supply for contracts."
Northern Bear shares were 7.4% lower at 53.25 pence each in London on Monday morning.
By Tom Budszus; [email protected]
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