Newcastle construction specialist Northern Bear expects to post profits above 拢1.7m in half-year results due to a strong trading period.
The AIM listed group, which includes a number of building and support service companies, announces interim results next month in which it expects to report operating profit in the range of 拢1.7m to 拢1.8m for the period. In a trading update for the six-month period ended 30 September 2023 the group said it had traded in line with management鈥檚 expectations and ahead of strong prior year results.
It said site activity levels remained high despite the ongoing macro-economic challenges and their impact on the construction industry. As of September 30 the group had a net cash position of 拢400,000, an improvement on the comparable period last year鈥檚 net debt of 拢1.9m.
The firm said the profit figure marks a significant improvement on the prior period of 拢1.5m, 鈥渨hich had been considered a very strong performance, and is testament to the hard work and commitment of the group鈥檚 employee base鈥.
It added: 鈥淭he group鈥檚 forward order book remains strong and should support trading performance in the coming months, subject to ongoing uncertainties in the macro-economic climate in which the group operates.鈥
Last week the company announced that its chairman Jeff Baryshnik is set to retire from his role next month. He will retire if a proposed 拢3.1m tender offer is passed at next month鈥檚 general meeting. The tender offer invites shareholders to tender some or all of their ordinary shares for purchase by the company - and the maximum number Northern Bear can purchase will be 5,000,000, which is equivalent to 26.7%.
Mr Baryshnik and Cedarvale Holdings has signed 鈥渁n irrevocable undertaking鈥 to vote in favour of the tender offer and say they will tender combined shareholdings of 4.7m shares. Other board members wish to retain their shareholdings and Harry Samuel, one of the company鈥檚 current non-executive directors, would take the position of interim non-executive chairman until a permanent successor is found.
