Member Article

Northern Bear disposes of subsidiary and signs new credit facility

Newcastle-based construction company Northern Bear has disposed of its subsidiary Chirmarn Holdings Limited for £50k to an independent third party.

Chirmarn, which provides asbestos removal and surveying services, was acquired by the company in 2007 although has been trading at a loss of late despite Northern Bear’s efforts to reinvigorate the firm.

The sector in which Chirmarn operates differs from those in which other Northern Bear companies operate in that asbestos, for health & safety reasons, has not been widely used as a construction material for some time.

Northern Bear chiefs believe that the disposal is in the best interest of shareholders and will allow it to focus on the group’s core businesses and markets.

In a statement released this morning, the board also announced that its trading results from continuing operations for the financial year ended 31 March 2017 are expected to be at least in line with the prior year.

Moreover, the business has signed a new £3.5m revolving credit facility agreement with Yorkshire Bank to replace the previous term loan facility which was due for renewal on 31 March 2017. This new facility will expire in May 2020.