27 Jan 2012 07:00
FOR IMMEDIATE RELEASE 27 January 2012
Northbridge Industrial Services Plc.
("Northbridge" or "the Group")
Pre-Close Trading Update
Northbridge Industrial Services plc, the industrial services and rental company, is pleased to issue the following pre-close trading statement in advance of its preliminary results for the year ended 31 December 2011, which are scheduled to be released in the week commencing 16 April 2012.
The Group expects profits for the year ended 31 December 2011, before tax and exceptional items but net of amortisation, to be in line with market expectations. Trading has remained robust in the majority of the Group's markets and, as expected, the second half of the year saw both increased rental and equipment sales.
Tasman Oil Tools, which was acquired in July 2010, is now fully integrated into the Group and has performed in line with management's expectations. In addition, it is anticipated that the acquisitions of Loadcell Services and DSG Rental, announced on 13 December 2011 and 16 December 2011 respectively, will make a contribution to the Group's results in 2012.
As part of the ongoing review of the Group's assets, the Board has recognised that certain rental assets have not achieved the levels of utilisation that are considered acceptable in comparison to Group activities. These assets were originally purchased to supply generators, transformers and ancillary equipment for the terminated rental contract to the Jabali Zinc Project in Yemen. Whilst the Group is continuing to market these assets for rental the Board believes it to be appropriate to explore the sale of this equipment and, if sold, the proceeds would then be released for investment into core hire assets. In light of this the Board proposes to recognise an impairment provision that would write down the value of the assets to reflect the estimated proceeds should the equipment be sold. This provision will be treated as an exceptional item and be recognised within the year ended 31 December 2011.
Eric Hook, Chief Executive Officer of Northbridge commenting on trading said:
"Northbridge has started 2012 with a larger hire fleet and an increased geographical presence following the investment and acquisitions made in 2011. Contracted rental demand and product sales orders have increased strongly across the group compared with this time last year with all of the Group's major businesses winning substantial contracts for 2012.Northbridge is therefore well placed to continue to exploit the opportunities that will arise throughout the year and the board is confident that the Group will continue to grow and meet its objectives during 2012."
For further information:
Northbridge Industrial Services plc | 01283 531645 |
Eric Hook, Chief Executive Officer | |
Craig Robinson, Finance Director | |
Arbuthnot Securities Limited (Nominated Adviser & Broker) | 020 7012 2000 |
Antonio Bossi | |
Ed Groome | |
Buchanan | 020 7466 5000 |
Charles Ryland | |
James Strong |
About Northbridge:
Northbridge Industrial Services plc hires and sells specialist industrial equipment to a non-cyclical customer base. With offices or agents in the UK, US, Dubai, Belgium, Germany, France, Australia, Singapore, India, Brazil, Korea and Azerbaijan, Northbridge has a global customer base. This includes utility companies, the oil and gas sector, shipping, construction and the public sector. The product range includes loadbanks, transformers, generators, compressors and oil tools. Northbridge was admitted to AIM in 2006 since when it has recorded increased earnings and dividends based on providing a high level of service, responsiveness and flexibility to customers. It has grown by acquisition of companies in the UK, Dubai, Azerbaijan and Australia and through investing further in those acquired companies to make them more successful. Northbridge continues to seek suitable businesses for acquisition across the world.