(Sharecast News) - Northbridge Industrial Services updated the market on its recent performance on Thursday, reporting that the above-expectations trading in the first quarter had "accelerated further" into the second quarter.
The AIM-traded firm, which was holding its annual general meeting, said that along with the strong trading already seen in the first half, the pipeline for both rental and sales was "building well" for the rest of the year.
As a result, the group said it was trading ahead of upgraded expectations, adding that visibility for the remainder of 2022 was now such that it was increasing its outlook for the year as a whole.
"The UK factory expansion has now been completed on budget and schedule and production has already begun, which will enable the company to meet the continued strong demand it is experiencing both for sales and rentals of power reliability equipment," the board said in its statement.
"The new facility will be officially opened on 6 July.
"The new depots in Texas and Antwerp are now open and form a key part of our strategy to grow recurring revenues in North America and Europe."
Northbridge said all market sectors continued to perform "strongly" and, in particular, the group was continuing to invest in and benefit from servicing the high levels of data centre activity globally.
"Increased production output and price rises have enabled the group to maintain margins and further improve our return on investment, despite accelerating inflation and continuing supply chain challenges resulting from both the pandemic and the situation in the Ukraine.
"Strong cash flow from operations and the proceeds from the Tasman disposal have enabled the group to repurchase company shares via a share buyback programme of, in aggregate, 1.05 million shares at an average price of 176.7p per share, to be held in treasury to satisfy the potential awards under the long-term incentive plan.
"The disposal of the final Tasman business in the Middle East remains on schedule to be completed in the summer."
A dividend of 1p per share, subject to approval at the annual general meeting, would be paid on 16 June to shareholders on the register on 27 May.
"We remain very confident in our strategy, the strength of our markets and our prospects for continued growth as we step forward as Crestchic," the directors concluded, referencing the company's new name being adopted after the Tasman disposal.
At 1515 BST, shares in Northbridge Industrial Services were up 8.38% at 208.63p.
Reporting by Josh White at Sharecast.com.