Bear's still on hunt for firms to buy

Mar 28 2008 By Andrew Mernin

BUILDING services and supplies company Northern Bear said it remains firmly on the acquisition hunt despite the downturn in the housing market.

The Chester-le-Street firm said there are ample opportunities to increase substantially the size of the business and it is currently evaluating a number of potential acquisitions.

A trading update also said the company expects turnover and profit for the year to March 31 to be at the upper end of market expectations.

According to brokers Dawney Day this could see the firm’s turnover climb to around £31m for the year as various acquisitions come on board.

This compares to turnover of around £4.7m in 2007.

Over the last 12 months the firm has been active on the acquisition front, snapping up four companies. Finance director David Jay said the company’s drive to diversify its business away from the new build housing sector is the key to its ongoing expansion.

“We continue to look at many opportunities and our reliance on new build housing is now less than 15% and we are also doing a lot of work with the Government.”

He said: “During the period we have delivered on the targets we set, adding four cash generative businesses to our growing portfolio of Northern-based building services businesses, all of which have been successfully integrated and have contributed positively to the company’s financial performance.”

Shares in the company climbed 2.04p to finish at 96.04p.

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