Further upgrades to forecasts and fair value
2021 was a hugely significant year for Northbridge. Profits rose to the highest level since FY14, achieved whilst amending strategy and a restructuring of the balance sheet. Continuing revenues hit new peaks, reflecting the continued buoyancy of the data centre and renewable energy markets.Furthermore, trading in Q1 of 2022 was ahead of budgeted levels due to record manufacturing order books and a robust rental pipeline. Demand for load banks continues to be driven by testing within the data centre and renewable energy markets, with recovery taking greater hold within the marine and project markets. We have further increased financial estimates as a result, raising adj. EPS estimates by 12.2% and increasing our dividend pay-out by a third.
Growth looks underpinned by the expansion of rental depots in both new and existing geographies, the new manufacturing facility (raising production by 60%), a renewed focus on fleet utilisation levels, investment in additional hire fleet, and a targeting of higher margin service-related revenues. We also anticipate growth to be further supported by energy transition towards renewables and cleaner fuels, coupled with regulatory drivers.
Our upgrades, coupled with a peer group comparison model, support an increase in our fair value/share to 200p at this early stage of the financial year.
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.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.