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Debts decline at Newcastle’s Northern Bear following year of ‘further strong performance’

Newcastle-based Northern Bear, a provider of specialist building services, has revealed how a successful business year has helped to reduce its bank debt.

Announcing its preliminary results for the year ended 31 March 2015, the company’s growth seems to have exceeded both internal management forecasts and prior year results.

Net bank debt decreased to £4.8m, falling by £0.8m from £5.6m last year. Moreover, the company’s revenue increased to £41.7m, up from £36.8m last year, whilst a rise in pretax profit to £1.9m, up from £1.8m, acts as a further indicator of growth.

In recent years, the company has prioritised using operating cash flow to reduce bank debt levels, even whilst trading conditions have been challenging. However, whilst this remains an overall priority, Northern Bear will continue to monitor opportunities for other uses of funds generated, including capital investment, bolt-on acquisitions and capital repurchases.

Whilst there was a downturn in project commencement pending the outcome of the recent UK General Election, the company has started the new financial year strongly.

For example, the firm has announced a number of new projects in recent weeks, including Newcastle’s Seven Stories refurbishment, Pele Tower in Corbridge and Percy Road in Whitley Bay.

Steve Roberts, Executive Chairman of Northern Bear, said: “The year ended 31 March 2015 saw further strong performance across our businesses, which is testament to the hard work of our staff.

“Whilst continuing to reward shareholders through dividend payments and further reducing bank debt, the Group remains well placed to take advantage of acquisition opportunities as and when they arise.”

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