Member Article

Operating profit increases to £1.1 million for Newcastle’s Northern Bear

Newcastle-headquartered firm Northern Bear have announced an increase in operating profit following a profitable high-profile working period.

In the six months to September 30 2014 the Group commenced work on a number of significant and high profile projects, including the Tyne Tunnel, roofing works on the Aloft Hotel (as part of the Royal Exchange Building redevelopment in Liverpool), and the redevelopment of Tyneside Cinema in Newcastle City centre.

Operating profit increased to £1.1 million (2013: £0.9 million) and profit before tax to £0.9 million (2013: £0.7 million).

The Group’s revenue increased to £20.1 million (2013: £17.4 million) in the period and its gross profit increased to £4.6 million (2013: £4.2 million).

There was growth in revenue at the majority of the Group’s businesses with the most marked increases in those in the roofing sector.

Operating profit increased to £1.1 million (2013: £0.9 million) and profit before tax to £0.9 million (2013: £0.7 million).

Executive Chairman, Steve Roberts, said: “The Board has maintained, as a priority, the use of operating cash flow to reduce the level of bank debt.

“We will, however, continue to actively monitor opportunities for the use of funds generated, including capital investment, bolt-on acquisitions and capital repurchases.

“During the period, we started the process of consolidating two of our trading businesses, MGM Limited and Northern Bear Building Services Limited, which operate in similar markets.

“As part of this process, we have leased new premises in the Team Valley Trading Estate from which both businesses will operate.

“This will provide operational synergies and overhead savings, whilst maintaining the brands and workforces of both companies.

“This is part of a medium term objective to plan for the Group’s future through both streamlining operations and succession planning which, moving forward, will involve bringing new blood into subsidiary management teams and promotions to the Group Board.

“Order books across the Group remain strong and we are hopeful of a successful second half of the financial year.

“The quality and experience of our people and the key customer relationships that they maintain remain fundamental to the Group’s success and I would again like to thank all of our employees for their contribution to the Group’s strong results.”

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