Newcastle-upon-Tyne-based building services firm Northern Bear learnt its lesson from the demise of Connaught and was not as badly hurt by Rok going bust.
Northern Bear had to write-off £165,000 when Connaught went to the wall. It was a contractor to Connaught but it did not lose the business it was working on because the end customer took over the management of the project.
Northern Bear decided that it had to be more careful with its debtors and it compiled a danger list. Rok was on the list and Northern Bear limited its exposure to £11,000 when the building firm went bust.
Given the current economic climate a rise in revenues, from £15.6m to £15.9m in the six months to September 2010, was a decent achievement. Pre-tax profit dipped from £576,000 to £458,000 but that was due to the Connaught debt.
Loss-making plumbing services business DJ McGough was sold to its management during the period.
Chief executive Graham Forrest believes that his company will benefit from North East England customers awarding contracts to local businesses.
Net debt was £9.4m at the end of September 2010. The overdraft has been renewed for another year.
At 18p a share, Northern bear is valued at £3.41m.
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.