Bear benefits as it shuns houses

Oct 3 2008 by Iain Laing, The Journal

NORTHERN Bear’s move away from house building has put it on course for half-year profits to hit expectations.

The Chester-le-Street company said it would continue its acquisition strategy, but shares failed to respond and closed 5p down at 81.50p.

It said: “In the current economic climate of acute uncertainty, the board believes it would be useful to confirm that it expects turnover and profit before tax for the six-month period to be in line with market expectations.”

New homes were now just 11% of turnover. The firm said it was sound and well within its banking covenants.

“The general economic climate remains challenging and, in view of this, the acquisition criteria adopted by the company have been further tightened.

“Nevertheless, there remain ample opportunities to allow the company to continue its acquisition strategy during the coming year.”

After its stock market debut it posted £32m sales and £2.3m pre-tax profits. In the year to March, it acquired 10 firms.