TIDMNTBR
RNS Number : 1491G
Northern Bear Plc
17 July 2023
17 July 2023
Northern Bear PLC
("Northern Bear" or the "Company")
Preliminary results for the year ended 31 March 2023
The board of directors of Northern Bear (the "Board") is pleased
to announce its unaudited preliminary results for the year ended 31
March 2023 ("FY23") for the Company and its subsidiaries (together,
the "Group").
Financial summary
-- Revenue increased 14.1% to GBP69.7m (2022: GBP61.1m)
-- Operating profit increased to GBP2.2m (2022: GBP0.7m operating loss)
-- Adjusted EBITDA* increased 13.9% to GBP4.1m (2022: GBP3.6m)
-- Adjusted operating profit* increased 13.4% to GBP2.9m (2022: GBP2.6m)
-- Adjusted basic earnings per share* increased 19.4% to 11.7p (2022: 9.8p)
-- Cash generated from operations increased 28.9% to GBP2.8m (2022: GBP2.2m)
-- Net cash position at year end of GBP3.2m (2022: net cash of GBP2.2m)
-- One-off contract losses relating to Arcas Building Solutions
Limited (formerly Northern Bear Building Services) ("Arcas") of
GBP0.7m (2022: GBPnil)
* stated prior to the impact of impairments, amortisation, Arcas
contract losses and other one-off costs
Operational summary
-- The Group generated strong operating results during FY23 and
has not experienced any slowdown in business to date, despite
widely publicised concerns about rising interest rates and their
potential effects on the UK economy.
-- As previously announced, the Group will pursue a dividend
growth strategy supported by the organic progress of the Group's
businesses and, to the extent accretive, bolt-on acquisitions. To
that end, the Group announced its intention to declare an ordinary
dividend of 4p per share plus a special dividend for FY23 of 1p per
share. The ordinary dividend is expected to be paid semi-annually,
with half paid after each of the year-end period and the half year
period, respectively.
-- John Davies was recently appointed as the new Managing
Director for Arcas Building Solutions Limited. John has had an
illustrious career in the construction industry including positions
as Managing Director of Meldrum Group and Chief Operating Officer
of Esh Group, two large construction companies for which he oversaw
substantial profitable growth.
Outlook
-- Early indications are that FY24 is progressing in a similarly
strong manner as FY23, for the financial year to date. As always,
the timing of Group turnover and profitability is difficult to
predict despite the continued strong order book and our results are
subject to monthly variability.
-- Inflationary pressures on construction materials prices have
eased somewhat, which should lead to improved visibility on
near-term profitability.
-- Our forward order book remains strong and should support our
trading performance in the coming months.
Jeff Baryshnik, Non-Executive Chairman of Northern Bear,
commented:
"We are delighted to announce one of the strongest full year
adjusted operating profits reported in the history of Northern Bear
and are excited to implement our dividend growth strategy. We look
forward to providing further updates to our shareholders and the
wider investment community during the second half of 2023."
For further information contact:
+44 (0) 166
Northern Bear PLC 182 0369
Jeff Baryshnik - Non-Executive Chairman +44 (0) 166
Tom Hayes - Finance Director 182 0369
Strand Hanson Limited (Nominated Adviser)
James Harris +44 (0) 20 7409
James Bellman 3494
Hybridan LLP (Nominated Broker) +44 (0) 203
Claire Louise Noyce 764 2341
Chairman's Statement
Introduction
I am delighted to report the results for the year to 31 March
2023 ("FY23" or "2023") for Northern Bear and its subsidiaries
(together, the "Group"), which reflects one of the strongest full
year adjusted operating profits reported in our history, which has
been achieved despite the well-publicised issues relating to
attracting and retaining employees in our industry.
Trading
Our companies have strong and well-established supplier
relationships and have been able, on the whole, to work with our
robust supply chain to ensure continuity of supply for customer
contracts. Additionally, we have not experienced any slowdown in
business to date despite widely publicised concerns about rising
interest rates and their potential effects on the UK economy.
Revenue for FY23 was GBP69.7 million (2022: GBP61.1 million) and
reported gross margin was 20.0% (2022: 20.4%) despite the impact of
certain unprofitable contracts at Arcas in FY23. Administrative
expenses, however, increased to GBP11.8 million (2022: GBP10.0
million) in large part due to increases in payroll, motor and fuel
expenses, insurance costs, and general cost inflation. The payroll
increase relates primarily to the recruitment of additional
commercial and operational staff, particularly at MGM Limited
("MGM") and Isoler Limited ("Isoler"), which have both performed
strongly in recent years and are businesses in which we foresee
further opportunities for profitable growth.
The Group generated strong operating results, reporting a profit
for the year of GBP1.6 million (2022: loss of GBP1.3 million) and
an operating profit of GBP2.1 million (2022: loss of GBP0.7
million). Adjusted operating profit for FY23 ("adjusted operating
profit", as presented in Note 3 below) was GBP2.9 million (2022:
GBP2.6 million), and adjusted earnings before interest, taxes,
depreciation, and amortisation ("adjusted EBITDA", as presented in
Note 3 below) for FY23 was GBP4.1 million (2022: GBP3.6 million).
Adjusted basic earnings per share (as presented in Note 4 below)
was 11.7p (2022: 9.8p) and reported basic earnings per share was
8.5p (2022: 7.1p loss per share). Adjusted EBITDA, adjusted EBIT
and adjusted earnings per share are presented prior to the impact
of Arcas contracts losses and amortisation in the current year, and
amortisation, impairment charges and one-off costs in the prior
year. More detail on these items is provided below.
Northern Bear Roofing
Despite the issues with labour availability in the roofing
industry, our Roofing division performed well in FY23, with
adjusted divisional EBITDA increasing to GBP2.5 million in FY23
(2022: GBP2.2 million), or an increase of 12%. Reported divisional
EBITDA for 2022 after the impact of the Springs Roofing Limited
("Springs") provision, described below, was GBP1.6 million.
Wensley Roofing Limited ("Wensley") had a particularly strong
year, principally due to its securing of additional framework
agreements from local social housing providers and their associated
general contractors. The Roofing division maintains a strong order
book across Wensley, Springs, and Jennings Roofing Limited. These
strong results are a testament to our three Managing Directors,
their teams, and their excellent relationships with our supply
chain.
As announced on 8 July 2022 and accounted for in the prior year
results, we decided to settle, for the sum of GBP0.6 million, a
legal claim against Springs brought by Engie Regeneration (FHM)
Limited, which was recently renamed to Equans (collectively,
"Equans"), where court proceedings had been issued in December 2021
for an original claim of GBP1.9 million. While the Springs
directors believed the claim was without merit, we took into
consideration the commercial risk of litigation and the potential
for irrecoverable costs to be incurred in defending the claim.
Springs and Northern Bear's other subsidiaries retain excellent
commercial relationships with Equans' regional and national
management team. As such, Equans continues to be an important and
valued customer for the Group. There are no other pending legal
claims against the Company or its subsidiaries, and we are not
aware of any matter that could lead to a material legal claim.
Northern Bear Specialist Building Services
Our Specialist Building Services division performed well in
FY23, prior to the impact of the loss-making contracts at Arcas,
with adjusted divisional EBITDA increasing to GBP1.9 million in
FY23 (2022: GBP1.8 million), or an increase of 8%. Reported
divisional EBITDA was GBP1.2 million in FY23 after the impact of
these unprofitable contracts described in more detail below.
Additionally, H. Peel & Sons Limited ("H Peel") has experienced
further stabilisation of its core markets.
MGM, our specialist construction and refurbishment business, has
seen continued steady performance. The order book is strong and we
believe this business is primed for further growth following recent
personnel additions.
H Peel, our fit out and interiors business, experienced some
stabilisation of its operational performance as its core
hospitality and leisure markets continue to recover post pandemic.
We are cautiously optimistic for a continued stabilisation in H
Peel's core markets, and of a resultant improvement in H Peel's
trading.
J Lister Electrical Limited ("J Lister"), our electrical
contractor, saw continued steady profitability during FY22. In
light of current order book levels, we are optimistic that trading
at J Lister will continue to improve.
Isoler, our fire protection contracting business, has continued
to perform very strongly, with an impressive and growing reputation
for good quality workmanship. Isoler has won expanded mandates from
their general contractor customers and local social housing
providers during FY23.
As preliminarily announced on 5 April 2023, our Arcas subsidiary
undertook a small number of contracts in the year where significant
trading losses were incurred under prior management. Initially, we
announced that this would be up to GBP750k. The final calculation
of the impact during FY23 was GBP733k, including a provision for
losses through to completion. After the financial year-end, John
Davies was appointed as the subsidiary's new Managing Director, and
it was renamed as Arcas Building Solutions Limited. Following
John's appointment and related operational and management changes,
these losses are expected to be a one-off issue.
Northern Bear Materials Handling
Our materials handling business, Alcor Handling Solutions
Limited ("Alcor"), formerly known as A1 Industrial Trucks, has seen
a significant improvement in its profitability despite continued
delays in receiving delivery of new forklift trucks due to supply
chain interruptions. Divisional EBITDA increased to GBP0.8 million
in FY23 (2022: GBP0.6 million), an increase of 34%.
Alcor's new premises in the prominent Team Valley Trading Estate
in Gateshead provides a larger footprint in a superior location,
which we believe will increase Alcor's profile. We also continued
our investment in the forklift fleet during FY23 which should
support near-term growth. This investment, coupled with the
possibility of being positioned to attract more business from the
numerous companies renting property on this well-known trading
estate, should mean an exciting time for the business.
Other matters
As in prior years, we have presented amortisation and certain
other adjustments separately within the Consolidated Statement of
Comprehensive Income, to provide an indication of underlying
trading performance. The adjustments in the current year are for
the amortisation of acquired intangibles. Adjustments in FY22
include impairment charges, one-off costs, and amortisation.
Calculations supporting alternative performance measures are also
included in the notes below.
The operating profit before amortisation and other adjustments
contributed by our trading subsidiaries during FY23 was GBP4.2
million (2022: GBP3.7 million), which was offset by corporate and
central costs of GBP1.3 million (2022: GBP1.1 million). Should
future subsidiary profits increase via organic growth or
acquisition, central costs would not be expected to increase
proportionately and this would, therefore, provide some operating
leverage.
Impairment charge
The large majority of goodwill relates to acquisitions made in
the Group's early years, between 2006 and 2008. These acquisitions
were completed at a time when different accounting standards were
in place which did not require separate identification of acquired
intangible assets and permitted capitalisation of deal costs,
resulting in a higher goodwill balance than would be likely under
current standards. Notwithstanding this, having previously taken
goodwill impairment provisions related to H Peel and Alcor, we
believe that the remaining carrying value of goodwill is
comfortably supported by current trading levels.
Cash Flow and Bank Facilities
The Group had a substantial net cash position, defined as cash
balances less the amount drawn down on our revolving credit
facility, of GBP3.2 million at 31 March 2023 (GBP2.2 million at 31
March 2022). Cash generated from operations during the year was
GBP2.8 million (2022: GBP2.2 million). As was the case for prior
years, these excess cash balances have, to an extent, normalised
post year-end, although the Group's financial position remains
strong.
As we have emphasised in previous years' results, our net cash
(or net bank debt) position represents a snapshot at a particular
point in time and can move by up to GBP1.5 million in a matter of
days, given the nature, size and variety of contracts that we work
on and the related working capital balances.
The lowest position during the financial year was GBP2.7 million
net bank debt, the highest was GBP3.2 million net cash, and the
average was GBP0.8 million net bank debt.
We have made limited use of our committed GBP1 million overdraft
and GBP3.5 million revolving credit facility in FY23. While the
Group's working capital requirements will continue to vary
depending on the ongoing customer and contract mix, we believe that
our financial position and bank facilities provide us with ample
cash resources for the Group's ongoing operational
requirements.
Growth Initiatives
We have continued to challenge our subsidiary management teams
to consider opportunities to expand their businesses over the
medium term, notwithstanding the mature nature of our businesses.
This could include a degree of geographic expansion and/or the
opportunity to broaden their product and service offerings.
Strategy & Dividend
As announced on 5 April 2023, after a review of strategy and
dividend policy, the Board reported that the Group will pursue a
dividend growth strategy supported by the organic progress of the
Group's businesses and, to the extent accretive, bolt-on
acquisitions. To that end, the Group announced its intention to
declare an ordinary dividend of 4p per share plus a special
dividend for FY23 of 1p per share. The ordinary dividend is
expected to be paid semi-annually, with half paid after each of the
year-end period and the half year period, respectively.
The proposed dividends are subject to shareholder approval at
the Annual General Meeting to be held on 12 September 2023. If
approved, the semi-annual portion of the ordinary dividend and the
special dividend both will be payable on 15 September 2023 to
shareholders on record at 25 August 2023. The remaining semi-annual
portion of the ordinary dividend will be payable on 15 March 2024
to shareholders on record at 23 February 2024.
The Board will continue to assess whether future special
dividends will be paid but our intention is to implement a
progressive dividend policy overall, subject to overall
profitability and cash flows that are roughly in line with, or in
excess of, those of the past two financial years.
More generally, the Company intends to further increase its
engagement with the broader investment community and continues to
explore avenues for increasing shareholder value.
Outlook
Our forward order book remains strong and should support our
trading performance in the coming months, subject to any
business-specific considerations noted in the trading statement
above.
As we have regularly reported, the timing of Group turnover and
profitability is difficult to predict despite the continued strong
order book and our results are subject to monthly variability. We
will continue to update shareholders with ongoing trading
updates.
People
John Davies
After year-end, John Davies was appointed as the new Managing
Director for Arcas. John has an illustrious career in the
construction industry including positions as Managing Director of
Meldrum Group and Chief Operating Officer of Esh Group, two large
construction companies for which he oversaw substantial profitable
growth. I would like to welcome John to the Group.
Our workforce
As always, our loyal, dedicated, and skilled workforce is a key
part of our success and we make every effort both to retain and
protect them through continued training and health and safety
compliance, supported by our health and safety advisory business,
Northern Bear Safety Limited.
Conclusion
I am delighted with the Group's results for the year, which
reflects one of the strongest full year adjusted operating profits
reported in our history.
Once again, I would like to thank all of our employees for their
hard work and commitment, and our shareholders for their continued
support.
Jeff Baryshnik
Non-Executive Chairman
17 July 2023
Consolidated statement of comprehensive income
for the year ended 31 March 2023
2023 2022
GBP000 GBP000
Revenue 69,724 61,098
Cost of sales (55,785) (48,642)
--------- ---------
Gross profit 13,939 12,456
Other operating income 35 99
Administrative expenses (11,815) (10,005)
----------------------------------------------- --------- ---------
Operating profit (before amortisation and
other adjustments) 2,159 2,550
One-off costs - (648)
Impairment charge - (2,612)
Amortisation of intangible assets arising on
acquisitions (13) (13)
----------------------------------------------- --------- ---------
Operating profit/(loss) 2,146 (723)
Finance costs (210) (156)
--------- ---------
Profit/(loss) before income tax 1,936 (879)
Income tax expense (344) (449)
--------- ---------
Profit/(loss) for the year 1,592 (1,328)
--------- ---------
Total comprehensive income attributable to
equity holders of the parent 1,592 (1,328)
========= =========
Earnings per share from continuing operations
Basic earnings/(loss) per share 8.5p (7.1)p
Diluted earnings/(loss) per share 8.5p (7.1)p
--------- ---------
Consolidated balance sheet
at 31 March 2023
2023 2022
GBP000 GBP000
Assets
Property, plant and equipment 4,990 4,413
Right of use asset 1,553 1,702
Intangible assets 15,406 15,419
Trade and other receivables 799 708
Total non-current assets 22,748 22,242
-------- --------
Inventories 1,444 1,404
Trade and other receivables 12,771 12,152
Cash and cash equivalents 3,150 3,233
-------- --------
Total current assets 17,365 16,789
-------- --------
Total assets 40,113 39,031
======== ========
Equity
Share capital 190 190
Capital redemption reserve 6 6
Share premium 5,169 5,169
Merger reserve 9,703 9,703
Retained earnings 7,499 5,907
-------- --------
Total equity attributable to equity
holders of the Company 22,567 20,975
-------- --------
Liabilities
Loans and borrowings - 1,000
Trade and other payables 114 58
Lease liabilities 1,504 1,606
Deferred tax liabilities 1,059 879
-------- --------
Total non-current liabilities 2,677 3,543
-------- --------
Loans and borrowings 35 38
Trade and other payables 13,947 13,210
Provisions - 600
Lease liabilities 700 609
Current tax payable 187 56
-------- --------
Total current liabilities 14,869 14,513
-------- --------
Total liabilities 17,546 18,056
-------- --------
Total equity and liabilities 40,113 39,031
======== ========
Consolidated statement of changes in equity
for the year ended 31 March 2023
Share Capital Share Merger Retained Total
capital redemption premium reserve earnings equity
reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 April 2021 190 6 5,169 9,703 7,218 22,286
Total comprehensive income
for the year
Loss for the year - - - - (1,328) (1,328)
Transactions with owners,
recorded directly in equity
Exercise of share options - - - 17 17
At 31 March 2022 190 6 5,169 9,703 5,907 20,975
-------- ----------- -------- -------- --------- --------
At 1 April 2022 190 6 5,169 9,703 5,907 20,975
Total comprehensive income
for the year
Profit for the year - - - - 1,592 1,592
At 31 March 2023 190 6 5,169 9,703 7,499 22,567
======== =========== ======== ======== ========= ========
Consolidated statement of cash flows
for the year ended 31 March 2023
2023 2022
GBP000 GBP000
Cash flows from operating activities
Operating profit/(loss) for the year 2,146 (723)
Adjustments for:
Depreciation of property, plant and equipment 787 671
Depreciation of lease asset 417 374
Amortisation 13 13
Impairment charge - 2,612
(Profit)/loss on sale of property, plant
and equipment (31) (29)
3,332 2,918
Change in inventories (40) (430)
Change in trade and other receivables (710) (2,145)
Change in trade and other payables 193 1,810
------- -------
Cash generated from operations 2,775 2,153
Interest paid (155) (101)
Tax paid (33) (57)
------- -------
Net cash flow from operating activities 2,587 1,995
------- -------
Cash flows from investing activities
Proceeds from sale of property, plant
and equipment 520 588
Acquisition of property, plant and equipment (1,466) (1,747)
Acquisition of subsidiary (net of cash
acquired) - (50)
-------
Net cash from investing activities (946) (1,209)
------- -------
Cash flows from financing activities
Issue of borrowings - 1,010
Repayment of borrowings (1,003) -
Repayment of lease liabilities (721) (694)
Proceeds from the exercise of share options - 17
Net cash from financing activities (1,724) 333
------- -------
Net increase/(decrease) in cash and
cash equivalents (83) 1,119
Cash and cash equivalents at start of
year 3,233 2,114
------- -------
Cash and cash equivalents at end of
year 3,150 3,233
======= =======
Notes
1 Basis of preparation
This announcement has been prepared in accordance with the
Company's accounting policies, which in turn are prepared in
accordance with the requirements of the Companies Act 2006 and
UK-adopted international accounting standards.
The accounting policies are the same as those applied in
preparation of the financial statements for the year ended 31 March
2022, apart from the following standards, amendments and
interpretations, which became effective for the first time, and
which were adopted by the Group for the financial year ended 31
March 2023:
-- Reference to the Conceptual Framework (Amendments to IFRS 3
Business Combinations) - effective date on or after 1 January
2022;
-- Property, Plant and Equipment: Proceeds before Intended Use
(Amendments to IAS 16) - effective date on or after 1 January
2022;
-- Onerous Contracts - Cost of Fulfilling a Contract (Amendments
to IAS 37 Provisions, Contingent Liabilities and Contingent Assets)
- effective date on or after 1 January 2022; and
-- Annual improvements 2018-2020 cycle - effective date on or after 1 January 2022.
Their adoption has not had any material impact on the
disclosures or amounts reported in the financial statements.
For the purposes of their assessment of the appropriateness of
the preparation of the Group's accounts on a going concern basis,
the directors have considered the current cash position and
forecasts of future trading including working capital and
investment requirements.
During the year the Group met its day to day working capital
requirements through an existing GBP1 million bank overdraft and a
GBP3.5 million revolving credit facility. At 31 March 2023 the
Group had net cash of GBP3.2 million based on GBP3.2 million cash
and GBPnil drawn on the revolving credit facility. The overdraft
facility was last renewed on 3 May 2023 for the period to 31 May
2024. The Group's revolving credit facility was most recently
renewed on 28 April 2023 and is committed to 31 May 2026. The
Directors have a reasonable expectation of successful renewal for
both the overdraft and revolving credit facilities based on a long
standing and strong working relationship with the bank.
The Group's forecasts and projections, taking account of
reasonable possible changes in trading performance, show that the
Group and the Company should have sufficient cash resources to meet
its requirements for at least the next 12 months. Accordingly, the
adoption of the going concern basis in preparing the financial
statements remains appropriate.
2 Status of financial information
The financial information set out above does not constitute the
Company's financial statements for the years ended 31 March 2023 or
31 March 2022.
The financial statements for 2023 will be finalised on the basis
of the financial information presented by the Directors in this
preliminary announcement and will be delivered to the Registrar of
Companies following the Company's Annual General Meeting. The
results are unaudited; however, we do not expect there to be any
difference between the numbers presented and those within the
annual report.
The financial information for the year ended 31 March 2022 is
derived from the financial statements for that year, which have
been delivered to the Registrar of Companies. The auditor has
reported on the 2022 financial statements; their report was i)
unqualified, ii) did not include references to any matters to which
the auditors drew attention by way of emphasis, without qualifying
their report, and iii) did not contain a statement under section
498(2) or (3) of the Companies Act 2006.
3 Alternative performance measures
The Group uses Adjusted Operating Profit, Adjusted EBITDA, and
Adjusted EPS as supplemental measures of the Group's profitability,
in addition to measures defined under IFRS. The directors consider
these useful due to the exclusion of specific items that could
impact a comparison of the Group's underlying profitability, and is
aware that shareholders use these measures to assist in evaluating
performance.
The adjusting items for the alternative measures of profit are
either recurring but non-cash charges (amortisation of acquired
intangible assets), one-off non-cash items (goodwill impairment
charges), or significant one-off items (loss-making contracts in
Arcas in FY23, provision for settlement of legal claim and
associated costs in 2022, both of which are discussed further in
the Chairman's Statement). The loss-making contracts in Arcas are
included in revenue and cost of sales in the income statement and
the net impact is presented in the table below.
Adjusted operating profit is calculated as below:
2023 2022
GBP'000 GBP'000
Operating profit/(loss) (as reported) 2,146 (723)
Loss-making contracts in Arcas Building Solutions 733 -
Provision for settlement of legal claim - 648
Impairment charge - 2,612
Amortisation of intangible assets arising on
acquisitions 13 13
Adjusted operating profit 2,892 2,550
-------- --------
Adjusted EBITDA is calculated as below:
2023 2022
GBP'000 GBP'000
Adjusted operating profit (as above) 2,892 2,550
Depreciation of property, plant and equipment 787 671
Depreciation of lease asset 417 374
Adjusted EBITDA 4,096 3,595
-------- --------
Adjusted basic and diluted earnings per share is presented in
note 4 below.
4 Earnings per share
Basic earnings per share is the profit or loss for the year
divided by the weighted average number of ordinary shares
outstanding, excluding those in treasury, calculated as
follows:
2023 2022
Profit/(loss) for the year (GBP000) 1,592 (1,328)
Weighted average number of ordinary shares
excluding shares held in treasury for the proportion
of the year held in treasury ('000) 18,725 18,674
-------- --------
Basic earnings/(loss) per share 8.5p (7.1)p
The calculation of diluted earnings per share is the profit or
loss for the year divided by the weighted average number of
ordinary shares outstanding, after adjustment for the effects of
all potential dilutive ordinary shares, excluding those in
treasury, calculated as follows:
2023 2022
Profit/(loss) for the year (GBP000) 1,592 (1,328)
-------- --------
Weighted average number of ordinary shares
excluding shares held in treasury for the proportion
of the year held in treasury ('000) 18,725 18,674
Effect of potential dilutive ordinary shares
('000) 13 42
-------- --------
Diluted weighted average number of ordinary
shares excluding shares held in treasury for
the proportion of the year held in treasury
('000) 18,738 18,716
-------- --------
Diluted loss per share 8.5p (7.1)p
-------- --------
The following additional earnings per share figures are
presented as the directors believe they provide a better
understanding of the trading performance of the Group.
Adjusted basic and diluted earnings per share is the profit or
loss for the year, adjusted for the impact of Arcas contract losses
and amortisation in the current year, and amortisation, impairment
charges and one-off costs in the prior year, divided by the
weighted average number of ordinary shares outstanding as presented
above. More detail on these adjustments is included in the
Chairman's Statement.
Adjusted earnings per share is calculated as follows:
2023 2022
Profit/(loss) for the year (GBP000) 1,592 (1,328)
Impairment charge - 2,612
Loss-making contracts in Arcas Building Solutions 733 -
Provision for settlement of legal claim - 648
Amortisation of intangible assets arising on
acquisitions 13 13
Corporation tax effect of above items (139) (123)
-------- --------
Adjusted profit for the year (GBP000) 2,199 1,822
Weighted average number of ordinary shares
excluding shares held in treasury for the proportion
of the year held in treasury ('000) 18,725 18,674
-------- --------
Adjusted basic earnings per share 11.7p 9.8p
Adjusted diluted earnings per share 11.7p 9.7p
-------- --------
5 Other operating income
2023 2022
GBP'000 GBP'000
Coronavirus Job Retention Scheme receipts - 63
Grants received - 12
Rental income 35 24
-------- --------
35 99
-------- --------
6 Finance costs
2023 2022
GBP'000 GBP'000
On bank loans and overdrafts 128 101
Finance charges on lease liabilities 82 55
210 156
-------- --------
7 Loans and borrowings
2023 2022
GBP'000 GBP'000
Non-current liabilities
Secured bank loans - 1,000
--------
- 1,000
-------- --------
Current liabilities
Other loans 35 38
-------- --------
35 38
-------- --------
The Group retains a GBP3.5 million revolving credit facility and
a GBP1.0 million overdraft facility, both with Virgin Money plc,
for working capital purposes.
As at 31 March 2023, a total of GBPnil (2022: GBP1.0 million)
was drawn down on the revolving credit facility, providing a net
cash figure at 31 March 2023 of GBP3.2 million (2022: GBP2.2
million) after offsetting cash and cash equivalents of GBP3.2
million (2022: GBP3.2 million).
The revolving credit facility was renewed on 28 April 2023 and
is committed until 31 May 2026. The overdraft facility was last
renewed on 3 May 2023 and is next due for routine review and
renewal on 31 May 2024.
8 Availability of financial statements
The Group's Annual Report and Financial Statements for the year
ended 31 March 2023 are expected to be approved by 24 July 2023 and
will be posted to shareholders during the week commencing 24 July
2023. Further copies will be available to download on the Company's
website at: http://www.northernbearplc.com . It is intended that
the Annual General Meeting will take place at the Company's
registered office, A1 Grainger, Prestwick Park, Prestwick,
Newcastle upon Tyne, NE20 9SJ, at 2:00pm on 12 September 2023.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended by virtue of the Market Abuse
(Amendment) (EU Exit) Regulations 2019.
This information is provided by RNS, the news service of the
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END
FR DGGDRCUBDGXL
(END) Dow Jones Newswires
July 17, 2023 02:00 ET (06:00 GMT)
Northern Bear (LSE:NTBR)
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