NBI.L Regulatory News (NBI)

18 Sep 2006 07:00

Northbridge Industrial Services PLC18 September 2006 For Immediate Release 18 September 2006 Northbridge Industrial Services PLC. (the 'Group' or 'Northbridge') Interim Report and Accounts 2006 Chairman's Statement Highlights • Includes the results of Crestchic for three months, post acquisition • Crestchic trading ahead of expectations, turnover up 36% in first 6 months of 2006 • Increased investment in Crestchic's hire fleet • Buoyant markets world-wide • Inaugural EPS of 3.9 pence I am pleased to present Northbridge's first interim report as a public listedcompany; the accounts cover the period from 1st January 2006 to 30th June 2006and have been prepared under EU adopted International Financial ReportingStandards (IFRS). On 28th March 2006 the Company acquired Crestchic Ltd and co-terminously listedits shares on AIM. The purchase consideration of Crestchic Ltd was £6.7 million,excluding costs, and was funded by the placing of 6.4 million shares at 100p andbank finance of £750,000. These results therefore include just 3 months tradingof Crestchic. Crestchic designs, manufactures, sells and hires load bank equipment which isprimarily used for the commissioning and maintenance of independent powersources such as diesel generators and gas turbines. The first three months of trading by Crestchic following its acquisition byNorthbridge shows a continuing improvement in performance. The company operatesin a growing global market place and its results compare very favourably withthe corresponding period in 2005. The need to continually test and maintain standby power systems withinincreasingly unreliable power infrastructures in many parts of the world,coupled with ongoing investment in the oil and gas industry, has reflected instrong demand for Crestchic's products and services. In particular, sales thoughits agents in North America and in the Far East have been encouraging. On a like for like basis Crestchic has enjoyed a 36% increase in sales for thefirst 6 months of 2006 (from £2.7 million to £3.7 million). Operating profitswere £685,000 before Group costs. This has enabled the company to make furtherinvestments of £384,000 in its hire fleet compared with £290,000 for the wholeof 2005. A summary of Crestchic's audited accounts for 2005 prior to its acquisition byNorthbridge is shown separately. Northbridge's consolidated revenue for the half-year was £2.0 million with grossprofits exceeding £1.0 million; operating profits were £235,000. Net Assets at30th June 2006 were £6.6 million and the strong cash flow since the beginning ofthe year has reduced gearing to just 6.5%. Basic earnings per share were 3.9pence, 3.8 pence fully diluted. The second quarter included the installation of the 50MW Sakhalin Island rentalcontract, which has started generating revenue from the beginning of the secondhalf year. I am confident that trading and cash flow will be strong for the restof 2006. As indicated at the time of flotation we will not be paying an interim dividend.Subject to the strong trading continuing in line with expectations it is theboard's intention to recommend a maiden dividend for the year ended 31stDecember 2006. Finally, I would like to thank all the staff involved on the smooth transitionof ownership; their continued enthusiasm and commitment augurs well for thefuture. P R Harris Chairman Northbridge Industrial Services plcConsolidated Income Statement * 6 Months Year to ended 30th June 31st December 2006 2005 Unaudited Audited £000''s £000's Revenue 2,000 - Cost of sales (998) - ------- ------- 1,002 - Operating expenses (767) (11) ------- -------Profit / (loss) from operations 235 (11)Finance income 5 1Finance costs (14) - ------- -------Profit / (loss) on ordinary activities before tax 226 (10) Taxation expense (68) ------- -------Profit / (loss) on ordinary activities aftertaxation 158 (10) Earnings per share - basic (pence) 3.9 - diluted (pence) 3.8 * Includes three months of Crestchic Northbridge Industrial Services plc Consolidated Balance sheet as at 30th June 31st December 2006 2005 Unaudited Audited £000's £000's Non current assets Intangible assets 2,485 -Property plant & equipment 3,576 - ------- ------- 6,061 - Current assets Inventories 767 -Trade & other receivables 2,157 -Cash and cash equivalents 302 264 ------- ------- 3,226 264 Current liabilities Trade & other payables (1,221) (12)Other financial liabilities (43) -Tax liabilities (502) - ------- ------- (1,766) (12) Net current assets 1,460 252 Total assets less current liabilities 7,521 252 Net current liabilities Financial liabilities (608) -Deferred tax liability (296) - ------- ------- Total net assets 6,617 252 ------- ------- Capital and reserves Share capital 739 26Share premium account 5,530 236Share option reserve 200 -Retained earnings 148 (10) ------- -------Total equity 6,617 252 ------- ------- Northbridge Industrial Services plc Consolidated Cash Flow Statement 6 Months ended Year to 30thJune 31st December Unaudited Audited 2006 2005 £000's £000's Cash flow from operating activities Operating profit (loss) 235 (11)Depreciation and amortisation 78 - ------- ------- 313 (11)Increase in trade and other receivables (351) -Increase in stocks and work in progress (167) -Increase in trade and other payables 111 11 ------- ------- (407) -Cash utilised by operating activities (94) - Interest received 5 1Interest paid (14) - ------- -------Net cash from operating activities (103) 1 Cash flows from investing activities Acquisitions (6,376) -Purchase of tangible fixed assets (281) -Purchase of intangible fixed assets (127) - ------- ------- Net cash used in investing opportunities (6,784) - Cash flows from financing activities Proceeds from share capital issued 7,038 263Costs of share capital issued (831)Proceeds of long term borrowings 730 -Repayment of hire purchase loans (12) - ------- ------- 6,925 263 Net increase in cash and cash equivalents 38 264Cash and cash equivalents at beginning of period 264 - Cash and cash equivalents at end of period 302 264 Crestchic Limited - Profit and Loss Account For the year ended 31st December 2005 Audited. £000's Turnover 6,221 Cost of sales (2,859) -------Gross profit 3,362 Distribution costs (1,527) Administrative expenses (565) -------Operating profit 1,270 Profit on disposal of fixed assets - -------Profit on ordinary activities before interest and income 1,270 Other income receivable and similar income 12Interest payable and similar charges (24) -------Profit on ordinary activities before taxation 1,258 Taxation on profit on ordinary activities (368) -------Profit on ordinary activities after taxation 890 ------- All amounts relate to continuing activities Crestchic Limited - Balance Sheet As at 31st December 2005 Audited. 2005 £000's Fixed assets Intangible assets 150 Tangible assets 2,850 ------- 3,000Current assets Stocks 470 Debtors 1,764 Cash at bank and in hand 1,057 ------- 3,291 Creditors: amounts falling due within one year (1,282) -------Net current assets 2,009 -------Total assets less current liabilities 5,009 Creditors: amounts falling due after more than one year (199) Provision for liabilities and charges (412) (611) ------- 4,398 -------Capital and reserves Called up share capital 10 Profit and loss account 4,388 -------Shareholders funds 4,398 ------- Crestchic Limited - Cash Flow Statement For the year ended 31st December 2005 Audited. 2005 £000's Net cash flow from operating activities 1,583 Returns on investments andservicing of finance Interest received 12 Interest paid: other (19) Interest paid: hire purchase (5) -------Net cash outflow from returns on investments and servicing offinance (12) Taxation Corporation tax paid (7) Capital expenditure and financial investment Payments to acquire intangible fixed assets (56) Payments to acquire tangible fixed assets (293) Receipts from sale of tangible fixed assets 53 -------Net cash outflow from capital expenditure and financial investment (296) Equity dividend paid (85) -------Cash inflow before financing 1,183 Financing Loans repaid (223) Capital element of finance leases repaid (56) -------Net cash outflow from financing (279) -------Increase in cash 904 ------- This information is provided by RNS The company news service from the London Stock Exchange