9 Jun 2022 07:00
9 June 2022
Northbridge Industrial Services Plc.
("Northbridge", the "Company" or the "Group")
AGM Trading Update - Ahead of Expectations
Name Change
Site Visit
Northbridge Industrial Services Plc, the power reliability company, today issues the following trading update, ahead of its Annual General Meeting ('AGM') which will be held today at 12.00 noon at the offices of Buchanan Communications, 107 Cheapside, London EC2V 6DN. A resolution will be proposed at the AGM to change the name of the company to Crestchic Plc, to reflect the Group's strategic focus on its key brand in the growing global power reliability market.
AGM Trading Update
As previously noted at the time of the announcement of the results for the year ended 31 December 2021, trading during the first quarter was ahead of management's expectations and this has accelerated further into the second quarter. Along with the strong trading already seen in the first half, the pipeline for both rental and sales is building well for the remainder of the year. As a result, the Group is trading ahead of upgraded expectations and visibility for the remainder of 2022 is now such that the Group is 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 new facility will be officially opened on 6 July and details on how to attend the opening ceremony are provided below.
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.
All market sectors continue to perform strongly and, in particular, the Group is continuing to invest in and benefit from servicing the high levels of data centre activity around the globe.
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 176.7 pence per share to be held in treasury to satisfy the potential awards under the LTIP. The disposal of the final Tasman business in the Middle East remains on schedule to be completed in the summer.
A dividend of 1.0 pence per share, subject to approval at the AGM, will be paid on the 16 June 2022 to shareholders who were on the register on 27 May 2022.
We remain very confident in our strategy, the strength of our markets and our prospects for continued growth as we step forward as Crestchic Plc.
Site visit
A formal opening ceremony for the new production facility will take place on Wednesday 6 July 2022 and the Company would like to invite institutional investors and sell side analysts to attend the event in Burton. It will be hosted by senior members of the executive and management teams, and the ceremony will be followed by a brief Group strategy presentation and smaller group tours of the new and existing facilities.
Please RSVP to georgec@buchanan.uk.com to receive details for the event and to be added to the attendee list.
-Ends-
For further information
Northbridge Industrial Services Plc 01283 531645
Peter Harris, Executive Chairman
Iwan Phillips, Finance Director
Shore Capital (Nominated Adviser and Broker) 020 7408 4050
Robert Finlay / David Coaten / Henry Willcocks
Buchanan Communications 020 7466 5000
Charles Ryland / Stephanie Whitmore
About Northbridge:
Northbridge Industrial Services plc hires and sells specialist power reliability equipment. With a product range comprising a wide range of loadbanks and transformers and depots, offices or agents in the UK, USA, The Middle East, Belgium, Germany, France, Singapore, China and South Korea, Northbridge has a global customer base. This includes utility companies, renewables, the oil and gas sector, data centres, shipping, banking, mining, construction and the public sector. Northbridge was admitted to AIM in 2006 since when it has grown by providing a high level of service, responsiveness and flexibility to customers.