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Northbridge Industrial Services

  • BY: Andrew Hore |
  • POSTED: 16/03/2008 |

Northbridge Industrial Services reported higher than expected 2007 profits.

Pro forma turnover rose 26% to £11.2m, which was well above forecast, while pre-amortisation profits grew from £1.2m to £1.75m. The load bank equipment manufacturer and hirer added Loadbank Hire Services in March 2007 and 51% of generator provider RDS in September 2007. They both contributed to profits. A new operation was opened in Dubai.

A final dividend of 2p a share takes the total for the year to 3p a share, compared with 2p a share in 2006.

Loadbank has been relocated to Rochester and the capacity of the original activities has been increased. 

Northbridge’s markets, particularly the oil and gas sector, remain buoyant. The order book is at a record level. The other 49% of RDS will be bought on 31 March 2008 for a total cost of up to £1.8m - £650,000 has already been paid.

At 150p, Northbridge is valued at £11.5m. House broker Charles Stanley forecasts 2008 profits of £2m, putting the shares on eight times prospective earnings.

Northbridge started out as a shell to acquire industrial equipment rental and sales businesses. Acquisitions remain an important part of Northbridge’s strategy. It is interested in compressor and pump hire businesses. Net debt is £413,000 with the potential for deferred consideration of £1.15m for RDS. Northbridge also needs cash to increase its hire fleet. It may still be able to find earnings enhancing acquisitions even with its current low rating.

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