Northbridge Industrial Services plc, the industrial services and rental company, today announces its preliminary results for the year ended 31 December 2018, which are in line with market expectations.
- Group revenue up 4.9% to £26.9 million (2017: £25.7 million)
- Gross profit up 20.6% to £11.3 million (2017: £9.3 million)
- EBITDA1 up 44.0% to £4.6 million (2017: £3.2 million)
- Pre-tax losses1 more than halved to £2.0 million (2017: £4.4 million)
- Significantly increased cash generation from operations reaching £4.3 million (2017: £2.6 million)
- Placing of 2 million shares at 125 pence raising £2.4 million after expenses in June 2018
- Acquisition of a complementary hire fleet of drilling tools in South East Asia from a distressed competitor for £3.0 million
- Net debt unchanged at £8.7 million (2017: £8.7 million)
- Steadily improving conditions in the drilling tool market, with rental revenue in our Tasman business up 22.5% year on year
1 Before one-off exceptional cost of £712,000 (2017: nil).
Eric Hook, Chief Executive Officer, commenting on the results said:
“We are pleased to report results which are well ahead of the prior year and are driven by more positive conditions in our end markets. This year marked a turning point for Northbridge, with both divisions of our business starting to show signs of early recovery as the oil and gas market stabilises and the energy market, including in the renewables space, drive revenue growth.
As a result of our operational gearing, we believe that Northbridge is well placed to generate considerable gross profit margin growth as revenue continues to increase and we look forward with confidence to the future and expect further good progress to be achieved in 2019.”