TIDMNBI
RNS Number : 6386H
Northbridge Industrial Services PLC
02 August 2019
2 August 2019
Northbridge Industrial Services Plc
("Northbridge" or the "Group")
Pre-Close Trading Update
Much Improved Performance Continues
Northbridge, the industrial services and rental company, is
pleased to issue the following pre-close trading update in advance
of its interim results announcement for the six months ended 30
June 2019, which is scheduled to be released on 26 September
2019.
Trading in the six months under review continued to show a much
improved performance since last year and has been consistent with
the Group's forecasts. As mentioned in the AGM statement on 4 June
2019, the impact of a recovery in revenue results in our
operational gearing benefitting cash flow significantly as well as
continuing to improve EBITDA.
Recovery in our key end markets including the oil and gas
market, supported by stable pricing and a gradual improvement in
overall rig counts, is now beginning to have a beneficial impact on
both of Northbridge's businesses, Crestchic Loadbanks ("Crestchic")
and Tasman Oil Tools ("Tasman"). Consequently, the Group is
confident that the results for the full year ended 31 December 2019
will be in line with management's expectations.
Northbridge has two core activities, Crestchic Loadbanks and
Tasman Oil Tools. Crestchic is a specialist electrical equipment
business which manufactures, sells and rents loadbanks and
transformers from its base in Burton on Trent and has depots in
France, Germany, Belgium, UAE and Singapore. Crestchic also has
satellite locations in China and the USA. Tasman Oil Tools rents
drilling equipment to the oil, gas and geothermal industries from
its sites in Australia, New Zealand, Malaysia and the UAE.
Crestchic - Electrical power reliability
The UK and European activities of Crestchic continue to perform
well and are largely resilient to market conditions. Over the last
few years the data centre sector has proved a strong market for
Crestchic in both power and heat load testing, and we are seeing
this as an emerging core sector for Crestchic both in Europe and
other more developed economies. The US operation, which was started
in 2016, has continued to grow and year on year revenues have
increased. Our other overseas markets for power projects,
principally relating to natural resources and shipyards, have begun
to show some signs of renewed activity and this has continued into
2019, as the recovery in the energy market continues. Crestchic
started 2019 with its largest ever new year order book for the sale
of manufactured equipment.
Tasman - Drilling tool rental
The improvement in sentiment in the oil and gas market
experienced during 2018 has continued into the first half of 2019.
The rig counts in Tasman's immediate areas of operation have seen
improvements year on year, particularly in Australia, and are set
to continue with a renewed focus on gas and LNG exports.
As a result, activity levels in our rental business of Tasman
continue to improve. Our focus on quality, service levels, customer
relationships and ongoing selective investment, has enabled Tasman
to increase its market share in our key operations in Asia Pacific.
As a result, year-on-year revenues are showing significant gains in
large parts of our core markets, albeit from a low base.
Outlook
The Group remains confident in the resilience of the recovery in
our markets and we expect to make good progress for the rest of
2019 and look forward to a profitable future.
For further information
Northbridge Industrial Services plc 01283 531645
Eric Hook, Chief Executive Officer
Iwan Phillips, Finance Director
Shore Capital (Nominated Adviser and Broker) 020 7408 4090
Robert Finlay / Antonio Bossi / Henry Willcocks
Buchanan Communications 020 7466 5000
Charles Ryland / Stephanie Watson
About Northbridge:
Northbridge Industrial Services plc hires and sells specialist
industrial equipment. With offices or agents in the UK, USA, UAE,
Belgium, Germany, France, Australia, New Zealand, Malaysia,
Singapore, China, Brazil and South Korea, Northbridge has a global
customer base. This includes utility companies, the oil and gas
sector, shipping, banking, mining, construction and the public
sector. The product range includes loadbanks, transformers and oil
tools. Northbridge was admitted to AIM in 2006 since when it has
grown by providing a high level of service, responsiveness and
flexibility to customers, by the acquisition of companies in the
UK, UAE, Australia, Belgium, New Zealand and Singapore and through
investing further in those acquired companies to make them more
successful. Northbridge continues to seek suitable businesses for
acquisition across the world.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTEFLFBKVFEBBF
(END) Dow Jones Newswires
August 02, 2019 02:00 ET (06:00 GMT)
Crestchic (LSE:LOAD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Crestchic (LSE:LOAD)
Historical Stock Chart
From Jul 2023 to Jul 2024