Member Article

Newcastle’s Northern Bear announces positive net cash position for first time since float

Newcastle-based construction company Northern Bear has hailed a strong year in business, surpassing prior results and management expectations.

Releasing an update on its trading for the year ended 31 March 2017, the business reported a positive net cash position - the first time since its initial float - after having a £2.5m net bank debt the previous year.

This has been achieved through an increase in turnover following a relatively mild winter and continued strong performance, particularly in the Group’s Roofing division, according to company chiefs.

The business disposed of its subsidiary Chirmarn Holdings Limited on 31 March 2017, as previously announced, following a strategic review.

As a result the Group is reporting a loss on discontinued operations in the year which will include trading losses of £0.2m (FY2016: £0.1m profit), a loss on book value on disposal, and a non-cash write off of related goodwill.

Steve Roberts, Executive Chairman of Northern Bear, commented: “As a Board, we are again delighted with the performance of the Group in the year ended 31 March 2017.

“We are fortunate to have a very strong management team in all of our businesses and the continued strong performance is testament to their efforts and skills.

“After careful consideration, and over a two year period during which many options were assessed, we decided to dispose of our asbestos removal business, Chirmarn, to concentrate our efforts in other business sectors where the board believes greater growth can be achieved. The results from continuing operations assisted us in making this decision.

“As previously reported, 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 2017.

“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 without the need to raise new equity.”

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