‘Hungry’ Bear has new targets in mind
Nov 27 2007 by Peter McCusker, The Journal
FAST-GROWING building services group Northern Bear plc has unveiled impressive half year figures as it continues on its hungry acquisition trail.
The Chester-le-Street business with 350 staff saw turnover for the first six months of this financial year, until Sept 30, rise nearly threefold to £13.7m, with pre-tax profits hitting £1m – a twelvefold rise on the previous six months.
Chairman John Pither said: “Notably this is 12 months ahead of our initial expectation, but reflects our performance, both organically and by acquisition, and the improved cash status of the group.”
The company, which made its first foray outside the North-East this month by snapping up Leeds-based Jennings Roofings for around £5m, has also recently revealed to The Journal it expects to acquire two North-East construction businesses in the next three months as it aims to double annual revenue to £80m by November 2008. The last published results of the Northern Bear, for the six months up until March 31, this year, put turnover at £4.75m with pre-tax operating profit of £83,000.
The AIM-listed business, which has already spent around £6.8m this year on takeovers, has also revealed it had raised £11m for acquisitions through an arrangement with Yorkshire Bank. The results include two acquisitions made in the period – Chirman Limited and Hastie D Burton Limited.
Mr Pither added: “We continue to increase the scale and momentum of Northern Bear and feel we now have an excellent team of professionals and funders with us who can help deliver progressive earnings per share.
“We expect to continue with our acquisition policy during the second half of the financial year and have prospective targets in mind.”
Vinay Bedi of stockbrokers Wise-Speke said: “I was pleasantly surprised when I saw the announcement of a maiden interim dividend payment. This is a sign of their confidence. This is a business that is growing quite strongly through making small acquisitions.”
Northern Bear’s finance director, David Jay, said: “We are very pleased with our progress. We are still in the market for professionally run, mature companies in the building services field.”
The group’s share price climbed steadily in its first six months as a public company, jumping from 89p a share in December 2006 to 176p by late July.
Basic earnings per share for the period were 5.1p. Shareholders are also to benefit from a maiden interim dividend of 1p per share. Its shares rallied yesterday ending up 4p at 121p.
HIGHLIGHTS
Six months to September 30
Turnover £13.7m from £4.75m a year ago
Pre-tax profit £1m up from £83,000 a year ago
Maiden interim dividend – 1p
