BUILDING services company Northern Bear has issued a profits warning because of the effects of the heavy snowfall at the end of last year.

The Chester-le-Street group, which runs 13 business and employs more than 400 people, said that the big freeze in November and December hit its trading expectations.

In a brief statement to the stock exchange, Northern Bear said: “As a result of the severe weather conditions in November and December 2010, the company traded below market expectations.

“Trading conditions improved in January, and activity has increased further since that time. Whilst March was a very positive month, the markedly improved environment has not been sufficient to enable the company to trade in line with market expectations.

“As a result, the board expects profit for the year ending March 31, 2011 to be below market expectations.”

Northern Bear made a £705,000 profit in the first half of its financial year and trimmed £1m off its debt, which stood at £9.1m. Turnover grew to £15.9m during the first half of the year.

The results were Northern Bear’s best since the start of the recession. The group said at the time it was aiming to diversify to stay one step ahead of the competition.

Its business plan is to buy specialist construction-related companies, which become part of the Northern Bear group but tend to continue operating with the same staff and management.

Prior to the bad weather in November, its specialist services company MGM won the contract to design and build new facilities at two private healthcare homes in the region.

Key Healthcare opted for MGM to build a new standalone unit for people with physical disabilities at the Four Seasons Care Centre in Saltburn, plus a new laundry at the site.

Newcastle-based MGM also won the contract to build a laundry extension at Key Healthcare’s Grade-II listed Victoria House Care Centre in Middlesbrough.

The group is not alone in suffering a from the effects of the big freeze late last year. Big retail groups’ key Christmas selling periods were hit when shoppers could not get to stores.

Closer to home, Stockton beer monitoring company said earlier this year that its operating profit would be nearer £4m, down from £5.1m the previous year.

As a result of the severe weather conditions, the company traded below expectations