15th Jun 2015 07:55
LONDON (Alliance News) - Support services company Northern Bear PLC said Monday it will beat its expectations for its recently ended financial year despite exceptional costs, and expects to increase its proposed dividend.
For the year to end-March, Northern Bear said it expects to post revenue ahead of the GBP36.8 million it achieved in the previous year.
The company said it has an exposure of GBP259,000 in relation to GB Building Solutions Ltd going into administration, which will hit its results for the year. However, it said it is hopeful it will generate additional work from completing projects for which GB Building Solutions was previously responsible.
Additionally, Northern Bear said will recognise an exceptional cost of GBP239,000 for the year in relation to bank facilitates it renegotiated at the end of March.
Northern Bear is streamlining its operations, moving some of its operations into new offices, which it hopes will help reduce overheads.
The company said that current order book levels remain very strong and its new financial year has started well. Whilst there was a downturn in the number of projects beginning until the outcome of the recent UK general election was known, Northern Bear said it that in any case had been "well positioned to capitalise on future work irrespective of the outcome" of the election.
"Whilst continuing to reward shareholders through dividend payments and further reducing bank debt, the group is well placed to take advantage of opportunities as and when they arise both through organic growth and bolt-on acquisitions," said Executive Chairman Steve Roberts in a statement.
Shares in Northern Bear are trading up 12% at 55.95 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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