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RNS Number : 6303H
Northbridge Industrial Services PLC
26 March 2020
26 March 2020
Northbridge Industrial Services Plc
("Northbridge" or the "Group")
COVID-19 update
Northbridge, the industrial services and rental company, today
issues the following statement in relation to COVID-19.
Northbridge is due to issue its results for the year ended 31
December 2019 on Tuesday 7 April 2020 and under normal
circumstances there would be no reason for this to be delayed.
However, in this instance there is a risk of this announcement
being delayed, due to the uncertainty relating to COVID-19 and its
spread to the countries in which we operate, and in light of the
recent advice from the Financial Conduct Authority (FCA) to listed
companies to delay reporting. As a result, the Board has decided to
give this update to the market.
The health and wellbeing of our staff and their families is our
absolute main priority. We are following all government advice in
all the countries in which we operate and ensuring that our staff
do the same. Most of our locations are still operating normally to
support their customers, but others are operating under a business
continuity policy with restricted activity.
As noted in our pre-close trading update on 31 January 2020,
results for the year ended 31 December 2019 are expected to be in
line with management's expectations. Extracts from our unaudited
draft accounts for the year ended 31 December 2019 show a strong
balance sheet with pre-IFRS 16 net bank debt, excluding convertible
debt, of only GBP2.5 million and pre-IFRS 16 EBITDA of GBP7.0
million. Our bank facilities with NatWest extend to June 2021. The
Group has a worldwide rental fleet with a net book value of GBP18.5
million, UK and New Zealand freehold properties externally valued
at GBP4.5 million, and a UK debtor book of GBP1.9 million.
The operations of Tasman in the Middle and Far East continue to
trade, but the combination of COVID-19 and the downturn in the oil
price is beginning to impact the industry base, in particular
restrictions on travel and closed borders which are impeding
equipment and rig crew movements. It is too early to tell what the
long-term impact on the industry will be, but Q2 and Q3 are
anticipated to be quiet as the various governments concentrate
their efforts to combat the virus.
With a recession likely in the world's three largest economies
of China, the USA and the EU, energy demand is likely to be lower
for the rest of 2020 and this may impact on Group revenues. The
scale of the slowdown is currently uncertain, but we are already
reviewing planned operating expenditure to reduce costs, and
reducing capital expenditure to conserve our strong liquidity.
However, as also previously noted in our pre-close Trading
Update on 31 January 2020, Crestchic Loadbanks had a record
equipment sales order book at the beginning of the year and this
has increased further in the first quarter of 2020. The
manufacturing supply chains are currently holding up well.
The UK and European hire fleet of loadbanks is substantially
used for resilience testing for the back-up power supplies of
essential services including hospitals, government buildings, and
data centres.
The Board believes that the Group is financially resilient with
a low cost base, a robust balance sheet and with capital
expenditure requirements which can be quickly adjusted to market
conditions. Also, it has confidence in the ability of the Group's
trading to recover from a temporary downturn in the coming
months.
The effects of COVID-19 on global economic output in 2020 are as
yet uncertain. Given the significant current levels of uncertainty,
we are unable to provide more explicit guidance on trading, at this
point in time, for the current financial year. We continue to
monitor the COVID-19 situation very closely and will update the
market as the situation evolves.
ENDS
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 4050
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
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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