Half Yearly Report

29 September 2010

Northbridge Industrial Services Plc.

("The Group" or "Northbridge")

Unaudited Interim Results for the six months ended 30 June 2010

Northbridge Industrial Services plc, the industrial services and rental company today announces its unaudited interim results for the six month period ended 30 June 2010.

Financial highlights

• Group revenue up 28% to £7.8 million (2009: £6.1 million)

• Profit before tax up 27% to £1.4 million (2009: £1.1 million)

• Basic earnings per share up 7% to 11.5 pence (2009: 10.7 pence) and diluted earnings per share of 11.3 pence (2009: 10.6 pence)

• Gross margin stable at 63.3% (2009: 64.0%)

• Strong cash generation from operations of £1.9 million (2009: £2.7 million)

• Interim dividend increased by 11% to 1.55 pence (2009: 1.4 pence)

Operational highlights

• Continued strong growth in the Middle East Region

• Large contracts won with new customers in South Korea and Syria

• Further investment in the Group's hire fleet of £1.5 million (2009: £3.1 million)

• Acquisition of Tasman Oil Tools in July 2010

Eric Hook, Chief Executive Officer, commented:

"Trading improved in the majority of our activities during the first half of the year despite the continued economic uncertainty around the world and we expect this to continue for the second half. We look forward to reporting more progress in our development in due course".

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Chairman's statement

I am pleased to report further good progress in the Group's trading for the six months ended 30 June 2010 which shows an increase in Revenue and profit before tax of 28% and 27.4% respectively compared to the first six months of 2009. Whilst there is still some ongoing uncertainty in the economic environment we are now seeing tangible evidence of a return to growth in some areas of the business compared with last year.

The Group's higher margin rental businesses are still experiencing increased demand and there has been a modest improvement in the sales of manufactured units. The rental mix within revenues continues to grow and now represents 57% of overall revenue even allowing for a large one-off sale of equipment to Syria. This led to a gross margin of 63.3% in the period (2009: 64.0%).

Our main subsidiary in the Middle East, Northbridge Middle East ("NME"), continues to grow strongly and its trading performance so far this year has been at record levels.

Some of our smaller activities in the Middle East, the Caspian and the UK continue to experience lower volumes; Tyne Technical equipment Rental Services ("TTERS") for example, has been affected by the ongoing financial issues in Dubai. However there have been signs of improvement recently and we expect some recovery in the second half. RDS (Technical) Ltd ("RDS") in the Caspian is now seeing the benefit from a new round of oil & gas investment in the region.

As previously announced in June 2010, the contract for the supply of power generation equipment to the Jabal Salab Zinc project, which has suffered delays since September 2009 due to funding problems with the project, has now been terminated by the customer. The Group is currently in discussion regarding rental payments due for the minimum service period under the contract, and has already started the redeployment of resources that had been allocated to this contract.

Strong cash flow during the six months has enabled the Group to continue to invest, and a further £1.5 million of additional hire fleet has been purchased.

We were also very pleased to have completed our acquisition of Tasman Oil Tools in Perth, Western Australia, just after the end of the period under review. The funds were raised through a combination of new shares and new bank debt. The share placing was strongly supported by both new and existing shareholders. We believe this underlines the support for our business and our strategy for the Group's future development.

Financial results

Northbridge's revenue for the half year to 30 June 2010 was £7.8 million (2009: £6.1 million) with gross profits of £5.0 million (2009: £3.9 million). Profit before taxation was £1.4 million (2009: £1.1million). Net assets at 30 June 2010 were £13.4 million (2009: £11.9 million).

Basic earnings per share increased 7.5% at 11.5 pence (2009: 10.7 pence) and diluted earnings per share increased to 11.3 pence (2009: 10.6 pence).

Financing and cash flow

During the period the Group continued to generate cash strongly from operations with £1.9 million (2009 £2.7 million) being generated. Investment into the hire fleet was £1.5 million (2009: £1.9 million) net of financing. Net gearing at the end of the period was 31% (2009: 24%) as cash balances were used to fund investment into the hire fleet and also used for working capital due to the increased activity levels.

Dividends

The Board has declared an interim dividend of 1.55 pence (2009: 1.40 pence); an increase of 10.7%, to be paid on 5 November 2010 to shareholders on the register as at 8 October 2010.

Operations

Crestchic

Crestchic our main subsidiary showed some growth in activity compared to 2009 and the sales of manufactured units rose by 7% in the first half. Rental activity also maintained its volume following the good growth of last year. This part of the business has shown a great deal of resilience in the UK despite the economic conditions. Enquiries and quotes for both rental and sales have improved from last year.

NME

NME which distributes Crestchic products in the Middle East region as well as operating its own hire fleet of industrial equipment, continued to show very good growth following its inauguration in 2007 with rental revenue up by 38% and strong sales principally to a new customer in Syria. Its new subsidiary, TTERS, acquired in the first half of last year has fared less well due to the downturn in general commercial activity in Dubai itself. However, we expect this position to improve when it becomes wholly owned by NME early next year and we are able to effect changes to its operations.

RDS, which offers rental services to the oil and gas industry in the Caspian region has seen activity levels increase recently as a new phase of investment gets underway in the region.

Yemen contract

As previously announced, the contract for the supply of power generation equipment to the Jabal Salab Zinc project, which was won in April 2009 and had been due to start in September 2009, suffered numerous delays due to funding problems with the project and has now been terminated by the customer. The Group is currently in ongoing discussion regarding rental payments due for the minimum service period.

Placing of new shares and the acquisition of Tasman Oil Tools

We were very pleased to complete the acquisition of Tasman Oil Tools Pty Ltd ("Tasman") in July following the placing of 5,606,000 new shares at £1.25 each which was announced in June. The aggregate consideration for the entire share capital was A$16.9 million (£9.7 million) subject to certain adjustments. This was made up of an initial cash consideration of £7.1 million, a deferred cash consideration of £1.7 million, payable in two tranches in December 2010 and September 2011 and 738,045 Northbridge shares issued at the placing price. The consideration shares are subject to a "lock in" period of 18 months following completion.

Tasman, based in Perth, Western Australia, specialises in the rental of equipment for the onshore and offshore oil industry across Australia. Audited turnover for the year ended June 2009 was A$11.2 million (£6.5 million). Based on previous audits, pro-forma profits before interest and tax for the year ended 30 June 2010 are expected to be in the region of A$ 3.5 million (£2.0 million).

The initial cash consideration comprised proceeds from the placing and a new bank facility of £3.0 million provided by Lloyds Banking Group. The success of the placing and the raising of further debt financing from our lenders demonstrates the confidence our shareholders and new investors have in our strategy going forward.

Outlook

Trading improved in the majority of our activities during the first half of the year despite the continued economic uncertainty around the world and we expect this to continue for the second half. We will also benefit from the acquisition of Tasman from 1 August 2010 and this is expected to be immediately earnings enhancing. As the proportion of our revenue relating to hire continues to increase it has a corresponding impact on our cash flow which in turn enables us to contemplate further expansion of our hire fleet and further acquisitions. We look forward to reporting more progress in our development in due course.

Peter Harris

Chairman

Northbridge Industrial Services plc

Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2010

All revenue and operating profit is derived from continuing operations.

 Northbridge Industrial Services plc

Consolidated Balance sheet as at 30 June 2010

Northbridge Industrial Services plc

Consolidated Statement of Cash Flows

For the six months ended 30 June 2010

Notes to the unaudited interim statements

Northbridge Industrial Services plc

1. Basis of preparation

This interim report has been prepared in accordance with the accounting policies disclosed in the full statutory accounts for the year ended 31 December 2009.

These policies are in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively "IFRS"s) issued by the International Accounting Standards Board as endorsed for use in the European Union, that are expected to be applicable for the year ending 31 December 2010.

The Group has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing the interim consolidated financial information.

The financial information in this statement relating to the six months ended 30 June 2010 and the six months ended 30 June 2009 has not been audited, but has been reviewed, pursuant to guidance issued by the Auditing Practices Board. The comparative figures for the year ended do not amount to full statutory accounts within the meaning of section 435 of the Companies Act 2006. Those accounts have been reported on by the Group's auditors and delivered to the Registrar of Companies. The audit report was unqualified, did not include references to matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

For the six months ended 30 June 2009 an amount of £1,850,000 has been reclassified in the consolidated statement of cashflows from purchase of property, plant and equipment to hire fleet expenditure as per the requirements of IAS 7.

The interim report for the period ended 30 June 2010 was approved by the Board of Directors on 29 September 2010.

2. Tax on profit on ordinary activities

The anticipated taxation rate on profits is estimated to be approximately 28% (2009: 28%).

3. Property, plant and equipment

During the period the Group acquired property, plant and equipment with an aggregate cost of £1,552,000 (2009: £3,186,000) of which £13,000 (2009: £1,239,000) was acquired by means of finance leases. Total additions included £1,477,000 (2009: £3,089,000) of hire fleet additions.

Cash payments of £1,539,000 (2009: £1,947,000) were made to purchase property, plant and equipment.

4. Earnings per share

The earnings per share figure has been calculated by dividing the profit after taxation, £1,024,000 (2009: £806,000), by the weighted average number of shares in issue, 8,940,107 (2009: 7,527,908).

The diluted earnings per share assumes all share options are exercised at the start of the period or, if later, the date of issue of the share options. This increased the weighted average number of shares in issue by 87,454 (2009: 71,197). At the end of the period, the Company had in issue 469,340 (2009: 469,229) share options which have not been included in the calculation of the diluted earnings per share because their effects are anti-dilutive. These share options could be dilutive in the future.

5. Dividends

An interim dividend of 1.55 pence per share (2009: 1.4 pence) will be paid on 5 November 2010 to shareholders on the register as at 8 October 2010. In accordance with IFRS, no provision for the interim dividend has been made in these financial statements.

6. Interim report

Copies of the interim report are being sent to all shareholders and are available to the public from the offices of Northbridge Industrial Services plc at Second Avenue, Centrum 100, Burton on Trent, Staffordshire DE14 2WF. The interim report and the interim announcement will also be available from the Group's website at www.northbridgegroup.co.uk.