LONDON (Alliance News) - Industrial services and rental company Northbridge Industrial Services PLC on Wednesday said it swung to a pretax loss in the first half due to declining revenue and restructuring costs, and said its finance director will leave as part of cost-cutting efforts.
The company said its pretax loss for the six months to the end of June was GBP2.1 million, compared to a GBP3.3 million profit a year earlier, as revenue declined to GBP18.6 million from GBP21.2 million. The group booked restructuring charges in the first half as it exited its non-core businesses and said it is seeking to cut another GBP1.5 million from its cost base.
That push has resulted in the group cutting down the number of senior staff it has and meant Craig Robinson, its group finance director, will leave with immediate effect. Northbridge does not intend to replace Robinson until a recovery in its markets is visible. Company secretary and financial controller Iwan Phillips will take on Robinson's duties.
Northbridge's first half was hit hard by the downturn in spending by oil and gas companies, which have been cutting spending and delaying and cancelling projects following the sharp drop in the world oil price over the past year.
The tough conditions meant the group also cut its interim dividend to 1.0 pence per share from 2.2p a year ago.
"The group has acted quickly and decisively during the current crisis in the oil and gas industry, exiting non-core activities, raising cash and cutting costs. These actions have now been largely completed and will not compromise its ability to benefit from any future upturn and the group is well positioned to grow when more stable market conditions return," said Chief Executive Eric Hook.
Shares in Northbridge were down 7.6% to 134.48 pence on Wednesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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