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Northbridge Industrial Services

  • BY: Andrew Hore |
  • POSTED: 25/03/2010 |

Northbridge Industrial Services reported lower 2009 profits but it says that there are signs of improvement.

The equipment rental and sales company’s core customer base is resources and power generation. Rental demand is increasing and there are more enquiries for the equipment Northbridge manufactures. 

Revenues declined from £15.7m to £12.7m in 2009. Equipment sales fell from £8m to £5m. A delay in the start of the Jabali zinc project in Yemen also hit revenues. This project should start later this year and the minimum service period for the supply of transformers and generators has been extended from 12 to 36 months.

Pre-tax profits fell from £2.97m to £2.21m. Rental business has higher margins and it is becoming increasingly important.

Northbridge used up all the cash generated and raised from share issues by investing £5.5m in its hire fleet. Spare capacity in the factory has been used to build up rental stock. Net debt was £1.63m at the end of 2009.

Northbridge has edged up its final dividend to 2.7p a share, making the total dividend 4.1p a share. That is still more than four times covered by earnings.

Northbridge remains committed to being a consolidator of industrial equipment businesses.

At 139p a share, down 4p on the day, Northbridge is valued at £12.4m.

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