14 Jun 2010 15:01
FOR IMMEDIATE RELEASE
14 June 2010
Northbridge Industrial Services plc.
("the Group" or "Northbridge")
NEW CONTRACTS AND TRADING UPDATE
Northbridge Industrial Services plc, the industrial services and rental company today issues the following trading statement in respect of recent major contract developments and current trading in advance of its interim results for the six months ending 30 June 2010, which are scheduled for release in the week commencing 20 September 2010.
As indicated at the time of the Group's preliminary results in March, and confirmed in the AGM statement in May, overall activity has continued to grow. Enquiries and quotes for the sale of manufactured units has increased compared with the levels of last year. In addition, rental demand has improved strongly in most of our markets and the Group expects to report substantial growth in the first six months of 2010 compared with the corresponding period in both 2008 and 2009.
Northbridge is also pleased to announce the winning of two major projects with both new and existing customers which will extend through the second half of 2010 and into 2011. The first project is in South Korea with an international oil company and involves the rental of load banks, transformers and generators to a project which will continue into the first half of 2011. The second project is to a new customer in the Middle East and involves the sale and rental of load banks and transformers to a cement plant in Syria. The minimum total revenue for these two projects, which take the Group into both new activities and new markets, will be US $3.0 million.
The contract for the supply of power generation equipment to the Jabal Salab Zinc project, which has suffered delays since September 2009, has now been terminated by the customer. The Group is currently in discussion regarding rental payments due for the minimum service period under the contract, and has already started redeploying the resources that had been allocated to this contract, into other markets.
Commenting on the trading update Eric Hook, Chief Executive of Northbridge, said:
"We are very pleased to announce the two new project wins which underline the strong demand for our services and products on a worldwide basis. These recent wins and the growing enquiry levels have helped to further improve the Group's overall outlook for 2010 and 2011. We are confident that the Group's performance in 2010 will comfortably achieve the current market expectations for the year."
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About Northbridge:
Northbridge Industrial Services was incorporated for the purpose of acquiring companies that hire and sell specialist industrial equipment supplying a non-cyclical customer base including utility companies, the public sector and the oil and gas industries. In particular it will seek to acquire specialist businesses that have the potential for expansion into complete outsourcing providers.
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