(Alliance News) - Northern Bear PLC on Monday said it was pleased with its "strong" annual trading, despite the "ongoing challenging market", resulting in a hiked dividend payout.
In the year ended March 31, the building services company recorded pretax profit of GBP3.1 million, 19% ahead of the GBP2.6 million reported the year before.
The company's revenue increased 5.6% to GBP56.6 million from GBP53.6 million.
Northern Bear's administrative expenses increased 16% to GBP8.7 million from GBP7.5 million the year before. The company attributed the increase to higher remuneration across its trading companies.
Due to the "continued strong" trading performance, the company upped its final dividend to 3.25 pence per share, 8.3% ahead of the 3.0p distributed the year before. Northern Bear also declared a special dividend of 0.75p, but this is 25% lower than the 1.0p special dividend paid out last year.
Northern Bear said it will not make any further special dividends if its trading continues at current levels but would be willing to pay one should its profit increase further.
"I am delighted to be reporting another strong set of results for the year. We are hopeful of another good year despite ongoing challenging market conditions and political uncertainty," said Executive Chair Steve Roberts.
Northern Bear said it saw an "outstanding" set of results it the first half - with particularly "strong" trading from Roofing and Specialist Building Services divisions - but reported "mixed" results over the winter period.
"Trading for the companies in our group is impacted by seasonal, cyclical, political and other factors, sometimes in an unexpected manner. Having a portfolio of eleven businesses does help balance, to some extent, this variability in profits but it will always be a factor in our overall performance in any given period," Northern Bear explained.
Roberts added: "The group continues to hold a high level of committed orders although, we have limited short term visibility as to when these orders will be realised."
"Despite the slower first quarter, the medium and longer term outlook for the financial year remain good and we are hopeful of another strong set of full year results."
Shares in Northern Bear were up 6.5% in London on Monday at 66.00 pence each.
Northern Bear (NTBR)