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 2017.
Key Points
- Group revenue higher at £12.0 million (2016: £11.8 million)
- EBITDA (pre-exceptional), £1.4 million (2016: £1.6 million)
- No exceptional charges (2016: £0.6 million)
- Positive cash generation from operations of £0.6 million (2016: £1.7 million)
- Reduced operating loss of £2.0 million (2016: £2.4 million)
- Net debt £9.5 million (£8.4 million at 30 June 2016; £9.5 million at 31 December 2016)
- Gradually improving conditions within elements of both divisions
o Factory order intake in Crestchic substantially up from H2 2016
o Manufacturing gross margins benefitting from improved efficiency
o Improvement in Tasman Oil Tools; rental revenue up 18% in constant currency terms
o New oil tool rental Joint Venture established in Malaysia to commence trading 1 October 2017
Commenting on the results and the outlook, Eric Hook, Chief Executive of Northbridge, said:
“Northbridge has seen some modest revenue improvements in our oil tool rental market, and those other areas of the business where we do have some direct influence are also performing well. However, the prolonged downturn in the oil and gas market continues to hold back some of our other rental revenues, in particular larger loadbank projects outside Europe which have been largely absent during the middle of 2017.
We look forward to the commencement of trading on 1st October of our oil tools joint venture with our Malaysian partners, Olio Resources SDN BHD. The JV will service the oil tool rental market in Malaysia, Myanmar, Brunei, Indonesia, Cambodia, Laos, Thailand and Singapore and initial order levels are encouraging. Taking this together with some of our other new initiatives we remain positive for the longer-term prospects for our business.“
Gresham House Strategic PLC has a total interest of 10.9% in Northbridge Industrial Services Plc correct as of 31 August 2017 month end NAV announcement, released 04 September 2017.