Record results for Northern Bear

Jun 26 2009 by Peter McCusker, The Journal

BUILDING services firm Northern Bear says it is ready to make further acquisitions after posting record results and paying off £2m of debt.

The Chester-le-Street firm saw sales jump 30% to £42m in the year to March 31 and pre-tax profits increase by 27% to £2.9m.

Chief executive Graham Forrest said: “The market had expected worse and it appears particularly pleased that we have reduced our debts from £11m to £9.3m in the last year, and favourably renegotiated our banking terms.

“Whilst the past 12 months have been challenging, I am delighted that we have been able to produce a very robust set of results, demonstrating the underlying strength of our business model.

“Since the year end, we have experienced an encouraging upturn in the levels of demand in some of our businesses. We have not made any moves for over a year but now we are ready to look over the horizon and have serious interest in some further acquisitions.”

Mr Forrest says its geographical presence will continue to expand out of the region following its purchase of a business in Leeds and the opening of a branch office in Manchester.

“We are looking at businesses in the North East and in Yorkshire and the North West – where the Northern Bear brand is now recognised – but at this stage I cannot see us looking outside the North.”

Northern Bear, which now employs 500 people, was floated on the stock market in December 2006, and has grown rapidly since. It now has 13 businesses in the building services sector under the group umbrella.

Some of the businesses in the Northern Bear portfolio achieved record results in the last year, including fire protection firm Isoler and asbestos removal firm Chirmarn.

The last year has seen it shift its focus away from new housebuilding, which now accounts for 4% of group turnover compared to 13% in 2008.

It has also increased its exposure to public sector contracts which now account for 57% of company revenue.

Mr Forrest said: “We are very mindful of maintaining a spread of businesses and consider it essential to retain a presence in the new house build sector for when the inevitable upturn arrives.”

The company said that while it had the cash flow and profitability to pay a dividend, payment had been suspended and would be re-instated “at the earliest point at which it is responsible to do so.”