LONDON (Alliance News) - Industrial services and rental firm Northbridge Industrial Services PLC Friday reported an increase in pretax profit for the first half, as it announced the GBP6.2 million acquisition of loadbank firm Crestchic Asia-Pacific PTE Limited (CAP).
Northbridge, which has agreed to acquire CAP through its Asia-Pacific subsidiary, is hoping to raise about GBP6.2 million through a placing of more than 1.5 million shares to fund the deal.
Singapore-based CAP specialises in the sale of loadbanks with customers mainly in Singapore Malaysia, China, Vietnam, Japan and Australia.
The company posted pretax profit of GBP2.6 million for the period ended June 30, up from GBP1.4 million a year earlier, while revenue jumped to GBP18.6 million, from GBP14.2 million.
Northbridge attributed the increase to the extension of a number of hire contracts which overran from the second half of 2012.
However, it said trading conditions remain challenging particularly in Europe, with contract start dates continuing to be delayed.
Cash flow stood at GBP5.2 million compared with GBP4.7 million a year earlier, while GBP2.4 million was invested in the hire fleet.
Northbridge said it had been looking to acquire Crestchic for a long time and its completion marked a further step in the strategic growth and development of the company.
The board approved an 8% increase in the interim dividend to 2.0 pence, from 1.85 pence.
Northbridge shares were trading at 425 pence Friday morning, up 17 pence, or 4.2%.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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