Building services firm Northern Bear has seen substantial growth in half-year revenue and profits which it says are the result of ongoing investment.
The Newcastle-based operator, which is listed on the London Stock Exchange, said it was trading slightly ahead of expectations as it saw revenue grow to £49.4m in the six months to the end of September, compared with £37.6m in the same period last year. Operating profit rose to £4.1m, compared with £1.7m in the first half of 2025.
Bosses said the group has traded very well during the first half of FY26 with strong underlying trading performance across all divisions. The results benefited from a non-recurring operating profit of £1.3m.
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Market conditions were said to be largely flat across the firm's major operating regions but warned that market pressures were starting to affect some of its businesses, including Arcas Building Solutions Limited and Jennings Roofing Limited. Northern Bear told investors it did not expect any market uplift in the next year.
Earlier this year, the group announced the closure of its fit-out operation at H Peel & Sons in Dewsbury - a business it has acquired eight years ago. It said H Peel had been impacted by the downturn in the leisure and hospitality sector as a result of Covid. The business was integrated into Arcas in the North East with trading losses of £200,000 reported.
Northern Bear's investment includes in Jennings Roofing Limited, which will use the former H Peel site. A fitout there is expected to be finished at the end of the year.
And at Wensley Roofing Limited a move into new premises has completed ahead of growth in the solar panel installation market. Investment in building integrity services outfit Isoler Limited has built an experienced compliance team which Northern Bear said would offer a wider range of services to clients. At Gateshead-based Alcor Handling Solutions Limited there has been investment in materials handling fleet.
Simon Carr, non-executive chairman of Northern Bear, said: "I am pleased to report that the group's financial position remains robust, with continued progress being achieved toward our medium-term goals. The current performance reflects the benefits of ongoing investment, an element of organic growth, and disciplined cash management, all of which have contributed to a solid set of results for the period.
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"I would also like to echo our CEO's appreciation for the dedication and effort of our employees, and to thank our shareholders and other key stakeholders for their continued confidence and support."
Investors were told the group's forward order book remains stable and should support trading performance in the coming months. Northern Beas employs about 500 people and floated on the AIM market in 2006.