Northbridge, an acquirer of industrial equipment businesses, has delivered encouraging interim results to June under chief executive Eric Hook. Pre-tax profits of £601,000 (£226,000), on turnover up from £2m to £4.8m, reflected a full six months’ trading from core subsidiary Crestchic, which was acquired at float in March 2006 (the comparative period only included three months of trading).

Sales and profits grew 30% at Crestchic, which makes, sells and hires ‘load bank’ equipment. Demand for such equipment is buoyant, reflecting clamour for secure power supplies and the reams of investment going into the global oil and gas sector. Loadbank Hire Services, operating from a depot in the South East and acquired by Northbridge in March this year, also made a contribution.

Alongside the interim figures, Hook announced the acquisition of a 51% stake in RDS, whose main business is the hire and sale of generators to the oil and gas sector in the Caspian region, for £650,000. Northbridge, which pleased investors with the news of a maiden 1p interim dividend, says hire enquiry levels are encouraging and the company is expanding into the growth hotspots of the Middle East and Asia.

With the share price underpinned by net assets of £7.5m, increased from £6.6m in 2006, and slight levels of gearing leaving plenty of headroom for further takeovers, we urge investors who bought on our advice with the shares at 128.5p to add to holdings.

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