Newcastle building services company Northern Bear has seen a significant increase in revenues despite wider challenges to the construction industry.
The listed company has announced unaudited preliminary results for the year ending March 31 which show revenues rising from £68.7m to £78.1m. Over the same period, operating profit also rose, going from £2.4m a year earlier to £3.4m.
Northern Bear said the results were a “testament to the continued hard work and commitment of the group’s employee base and came despite “ongoing macro-economic challenges and their related impact on the construction industry.” The company said it had benefited from the dry winter period that allowed more building activity to take place.
It also highlighted the benefit of its strategy of maintaining a balance of private and public sector clients. It said that trading in its new financial year had started positively.
In March, Northern Bear announced the closure of H Peel and Sons, a Yorkshire-based fit-out company it had acquired in 2017. It said the company had not recovered from the impact of the Covid pandemic on its main market in the hospitality and leisure sector.
In the results, John Davies, chief executive officer, said: “I am delighted to report the results for the year to 31 March 2025 for Northern Bear Plc and its subsidiaries. This year has seen a strong performance from the operating businesses, with the exception of H Peel and Sons Limited, which as previously announced was closed in May 2025.
“All of the group’s subsidiaries have benefited from the very dry winter period and also our strategy of maintaining a balanced mix of private and public sector clients. Revenue in the year was £78.1m and gross profit increased to £19.2m at a gross margin of 24.6%.
“Growth in revenue has been achieved through further investment in people, training and the relocation of businesses to support future growth plans. The improved gross margin resulted from a move in the sales mix into the higher-margin areas of the group’s business and continued careful contract selection and execution.”
The year saw change in the company’s management group, with the resignation of two directors and the appointment of construction industry veteran Simon Carr as chairman. Julian Davis joined the company as its chief financial officer in May.
Mr Carr said: “I am delighted with the group’s excellent results for the year, and I would like to wholeheartedly thank all of our employees for their talent, hard work and commitment, and our shareholders for their continued support. I am also pleased to welcome Julian Davis to the executive team and look forward to continuing to work with the board in my role as chairman as we build on this success.”
