Northern Bear
HOLDAcquisitive building services group Northern Bear is bucking the cycle with first-half pre-tax profits up 111 per cent to £2.1m.
The Durham-based company, which has been switching out of servicing the vulnerable new-build sector into less cyclical areas such as local authority and ‘affordable’ housing, increased turnover 71 per cent to £23.4m in the six months to September and pushed earnings up 59 per cent to 8.1p a share. Chief executive Graham Forrest says the growth has come almost entirely from acquisitions, which have taken AIM-quoted Northern into businesses such as roofing, asbestos removal and plumbing.
He argues the company, which has developed ‘long-standing relationships with schools, local authorities and housing associations’, has often secured ‘preferred status’ in competitive tenders and is well placed to benefit from the Government’s behind-schedule ‘Decent Homes’ programme to upgrade local authority and social housing by 2010. According to Forrest, Northern only buys companies on price/earnings of between two and three, with ‘no earn-outs’ and at least 25 per cent paid in equity to key management who undertake to stay on.
Forrest suggests profits growth will enable Northern to reduce its £9m debt and fund further acquisitions. Analysts suggest the company can increase pre-tax profits 52 per cent to £3.5m in the full year to March, with earnings 40 per cent ahead at 14p a share.
Recommended by Growth Company Investor in June at 109p, Northern’s shares fell to 56.5p last month amid the overall stock market turmoil. They have now bounced to 73p and should prove more resilient than many in today’s circumstances.
Save 50% off your first year’s subscription to Growth Company Investor magazine, and gain immediate access to all the recommendations online. Click here.
- Reduce text size Decrease text size
- Increase text size Increase text size
- Print article Print
- Share this article Share
- Email article to a friend Email
Market cap: £13.7m
PE Forecast: 5.2
Share price: 73p
Subscribe today
More breaking news stories.
More extended feature articles.
And a depth of analysis you
can't find anywhere else.
Advertisement
VCT Report 2010
VCT Report 2010 uncovers the money available
for investment in every single VCT, helping you get one step ahead in the race to attract funding for your unquoted, AIM-listed or PLUS-quoted
company.
Order VCT Report 2010 today using this online form
Cash Shells Directory 2010
A comprehensive overview of cash shells on AIM and PLUS, companies that have become a significant feature on the market landscape. For more information and to order, click here or contact our marketing team on 020 7250 7056.
Coverage of AIM, techMARK and PLUS Markets
Informative features and research on fast-growing companies, small-cap and growth stocks, penny shares, stock market tips and share recommendations, directors' dealings, company news and analysis, new issues and upcoming IPOs.
Take control of your investments
A full year's subscription to What Investment magazine for £19.95, a whopping 58% off. Get the latest news, features and expert advice on ISAs, Investment Trusts and Funds, SIPPS, Investing for Children and much much
more. Find out more here.
The Financial Times Guide to Personal Tax
is the definitive and most up-to-date guide to completing your self-assessment tax return, making sure that you get it right and on time, and showing how you can save tax. For more information and to order, click here or contact our marketing team on 020 7250 7056.
The AIM Guide Spring 2010
The new, fully updated AIM Guide is now available to buy for only £49.95 (saving you £30).
A 'must-have' for any serious investor or professional interested in the market for young, fast-growing companies. Order your copy today Hurry, as offer ends soon!
Share recommendations and small-cap stock picks
Small-cap and growth company share recommendations on AIM- and PLUS-listed companies. Latest analysts' stock tips and advice on which are the best shares to buy on London's junior stock markets.
Popular Recommendations
Advertisement
Latest Recommendations
Delcam 01/09/2010
Delcam, the international seller of CAD/CAM software to the engineering, aerospace and healthcare sectors among others, is a cash-generative small-cap seeing recovery in its markets.
Antisoma 01/09/2010
Bombed-out biotech play Antisoma is hoping two of its drugs will lead to good fortune after experiencing disaster with lung cancer treatment ASA404.
The Capital Pub Company 31/08/2010
London pub operator The Capital Pub Company is seeing continuing sales growth on the back of a surprisingly resilient market.
Sectors
