Northern Bear Plc (LON:NTBR) shares roared into action this morning after the building services group told investors that its results for the year just gone will be ahead of expectations.
The company revealed that the unaudited preliminary results for continuing operations for the 12 months ended 31 March would beat last year’s numbers as well as management’s own forecasts.
Northern said the better-than-expected results were due in part to the continued strong performance of its roofing division, along with “careful contract selection and management” and an expanding customer base.
The figures include a £0.2mln hit from the disposal of its asbestos removal subsidiary Chirmarn Holdings, which it sold off towards the end of the year.
Northern Bear to up the dividend
The net result is that there has been a “significant improvement” in the group’s financial situation. For the first time since it listed, Northern expects to report a positive net cash position.
That means the progressive dividend policy is set to continue, with Northern Bear telling investors that it will increase the proposed final divi this year.
No exact details were given, but the firm paid out 2p a share last year, so it’s nailed on to be more than that assuming shareholders vote in favour.
Things are looking up for 2018 as well. Northern revealed it has a “particularly strong order book” at the moment which “provides optimism for another good set of results” in 2018.
On the lookout for acquisitions
“As a board, we are again delighted with the performance of the group in the year ended 31 March 2017,” said executive chairman Steve Roberts.
“After many years of effort reducing bank debt, we are delighted to announce that the group had a net positive cash balance at 31 March.
“Whilst there are obviously working capital swings within any given month, our £4.5m of revolving and overdraft facilities provide us with the resource to continue with our progressive dividend policy whilst having the financial wherewithal to look at smaller acquisitions.”
Shares added 17.5% on Monday morning to trade at 66.4p.