Bellway shares up by 12.17%

Mar 28 2008 by Graeme King, The Journal

IN THE regional portfolio, Northern Bear issued an update to the market and confirmed that trading for the period has been strong and pre-tax profit should be towards the top end of expectations.

Northern Bear is a building services business which provides central strategic and financial functions to a portfolio of companies.

The group confirmed that it has moved away from the cyclical new build housing sector which now accounts for less than 10% of turnover.

Northern Bear also added that it intends to grow the business and is currently looking at a number of options. Over the past year the group has made a number of successful acquisitions which include Jennings Roofing Ltd and Chirmarn Surveying Ltd and both have bedded in nicely.

Chairman Jon Pither 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 companies, all of which have been successfully integrated and have contributed positively to the company’s financial performance.”

The board is also confident about the outlook for the coming year. Northern Bear’s share price climbed higher by 5.46% or 5p over the trading session to close at 96.5p. Elsewhere in the market, investment house Citigroup lowered its price target on housebuilder Bellway from 1030p to 995p citing the tough trading environment and tighter lending conditions as a concern.

Bellway released its half year figures to the market on Wednesday and they were in-line with market expectations. After digesting the figures, Citigroup maintained its ‘Buy’ rating on the stock.

Bellway’s share price jumped higher by some 12.17% over the session to close at 885p. Rival Barratt Developments also moved higher by 7.55% or 30.75p to finish the day at 438p.

Anthony Peart Anthony.Peart@Brewin.co.uk