Another encouraging update
NBI has issued a trading update covering the first 5 months of the year. Key points include an excellent y-o-y uplift in Q1 revenues and resilient trading during April and May. Management acted early to reduce costs, while cash flow proved strong. The outlook for H2 appears positive, reflecting a catch-up on delayed orders at Crestchic and contracts at Tasman.Net debt was broadly unchanged at £6.4m from the year-end, with the improved cash flows invested in a combination of capex and working capital. Trailing EBITDA increased to £7.4m in the year to April, which compares to £7m in the year to December and £5.7m a year earlier.
The strong cash flow has enabled the Group to extend its existing banking arrangement by a further year and the convertible loan agreement was extended to July 2022 on amended terms.
The Group is trading on a trailing EV/EBITDA multiple of 3.7x, which amounts to a significant discount (36.0%) to its peers. The shares currently trade at 35% discount to a book value that is backed by the rental fleet and properties, and which compares to a 41% premium to NAV for its peers.
Northbridge Industrial Services is engaged in the sales and hire of industrial equipment on a global basis for use in applications in the oil and gas, shipping, construction, and power and utility sectors. Co. has two main reportable segments: Crestchic loadbanks and transformers, which is involved in the manufacture, hire and sale of loadbanks and transformers; and Tasman oil tools and loadcells, which is involved in the hire and sale of oil tools and loadcells.
Schlumberger provides technology for reservoir characterization, drilling, production and processing to the oil and gas industry. The company has four segments: Reservoir Characterization, which consists of the principal technologies involved in finding and defining hydrocarbon resources; Drilling, which consists of the principal technologies involved in the drilling and positioning of oil and gas wells; Production, which consists of the principal technologies involved in the lifetime production of oil and gas reservoirs; and Cameron, which consists of the principal technologies involved in pressure and flow control for drilling and intervention rigs, oil and gas wells and production facilities.
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