Northbridge Industrial Services Plc (LON:NBI), the industrial services and rental company, today announced its unaudited interim results for the six-month period ended 30 June 2018.
· Group revenue up 4.5% to £12.6 million (2017: £12.0 million)
· Gross profit increased by 11.5% to £5.0 million (2017: £4.5 million)
· EBITDA up materially by 24.3% to £1.8 million (2017: £1.4 million)
· Significantly increased cash generation from operations of £1.9 million (2017: £0.6 million)
· Reduced operating loss of £1.2 million (2017: £2.0 million)
· Issue of £4 million convertible loan notes on 12 April 2018
· Net debt reduced substantially to £6.2 million (£9.5 million at 30 June 2017; £8.7 million at 31 December 2017)
· Placing of 2 million shares at 125 pence which raised £2.4 million after expenses
· Final £1.1 million paid for deferred consideration on the acquisition of Tasman New Zealand in September 2014
· Improving conditions in the drilling tool market, with rental revenue up 19% year on year
Commenting on the results and the outlook, Eric Hook, Chief Executive of Northbridge, said:
“We are very pleased to see that improved sentiment in the oil and gas markets has begun to translate into increased activity in our oil tool rental division, Tasman, providing sufficient confidence to invest selectively in our hire fleet for the first time in four years in order to supply contracts won in Malaysia and Australia. Crestchic, our power reliability side of the business, continued to show a resilient performance, with growth being achieved in particular within the rental division.
“Having raised further capital and refinanced our debt during the first six months, we have a strong balance sheet which leaves Northbridge securely positioned. We look forward to a successful second half of the year and remain confident for the long-term prospects for the business.”
Gresham House Strategic PLC has a total interest of 11.4% in Northbridge Industrial Services Plc as of June 2018.