With Q3 to date performing ahead of expectations and two additional contracts secured, we raise FY22 and FY23 estimates for the fourth time YTD. Focusing expansionary capex on loadbanks and targeting sectors with exciting growth prospects (such as data centres and renewable energy) has proven extremely fruitful. Evidence of that success is visible in the dividend payout during H1, ahead of the total FY21 level. With two significant contracts secured early in Q3, new records within the manufac...
We have upgraded estimates (again) to reflect this, with rental markets particularly buoyant which should result in Crestchic delivering record profitability levels in FY22 with adj. EPS estimates now 37% higher. The purchase and the subsequent refurbishment of used equipment is enabling Crestchic to meet rising rental demand. Utilisation rates are at record levels and new project demand stretches into FY23. Combine that with price increases plus strong performance in all sectors, and you have...
Today’s trading update ahead of the AGM is most encouraging. The decision to focus the strategy of the Group on power reliability, with accelerating growth within the datacentre and renewable energy markets, and recovery in marine and energy sectors, has clearly been vindicated. Only the Middle Eastern portion of the Tasman drilling tools business remains, with its disposal over the summer expected. The number of large projects increased y-o-y, driven by the datacentre and marine markets and a...
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 ...
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Northbridge has set out its detailed plans for expanding the Crestchic business: investment in new rental hubs, widening the geographical and sector reach, focus on the fastest growing and non-cyclical sectors, the opening of the new factory, and growth in parts and service revenues. The investment required will be funded from their existing facility with limited debt on the balance sheet. We think the outlook looks very promising, as highlighted by the return of dividend payments for FY21.
Northbridge has set out its detailed plans for expanding the Crestchic business: • investment in new rental hubs, • widening the geographical and sector reach, • focus on the fastest growing/ non-cyclical sectors, the opening of the new factory, • and growth in parts and service revenues. All investment required will be funded from their existing facility with limited debt on the balance sheet. We think the outlook looks very promising, as highlighted by the return of dividend payments for FY...
The combined trading and strategic update from Northbridge reports progress across several areas. Trading for FY21 was in-line with upwardly revised profit expectations, cash flow remained healthy, and the new year has started positively. In addition, the Group has exchanged contracts to dispose of most of its Tasman division, with just its Middle Eastern operations remaining and related write-downs unchanged versus prior expectations. Trading in the year to December was strong, with revenues ...
Strong interim results, combined with good visibility on the outlook into Q1 2022, cause us to revisit estimates for the second time in as many months. A favourable outlook for Crestchic continues to be driven by a combination of strong data centre markets globally and, a return of large projects. The proposed disposal of Tasman is ongoing, with management engaged in discussions with third parties and an expectation that following its sale the Group will be debt free. A positive outlook is un...
The headline news associated with the pre-close H1 update is that strong trading at Crestchic, plus a positive order book, results in an upgrade to our estimates for FY21. Revenues improved by 22% at Group level to £19.6m (the highest level since H1 2014) and by 44% to £15.8m within Crestchic alone. The latter’s progress was led by sales into the data centre market but was widespread across several sectors. The outlook remains similarly impressive, particularly within Crestchic, and as a resul...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
The trading update from Northbridge ahead of its AGM was positive, with activity levels within the core Crestchic loadbank division markedly higher YoY. Good order visibility into Q3 underlines their confidence in the outlook. The timetable to dispose of Tasman at a sensible price remains intact whilst work is expected to commence on the extension of manufacturing in Burton-on-Trent during Q3, adding 50% to capacity. Crestchic continues to build momentum, reflecting record orders, a return of ...
Northbridge’s results for FY20 were in line with market expectations, showing both revenues and adj. PBT higher y-o-y despite the impact of the pandemic on trading. Of greater significance was news of a strategic review of the business, with the Board examining the disposal of Tasman, the Group’s oilfield services unit. The FY20 results showed positive trading momentum and cash generation with net debt falling to give a net debt/EBITDA of 0.9x. With the Group well advanced in negotiations with...
The CEO and founder of NBI, Eric Hook, has decided to retire from his Board position, although he will remain a strategic advisor to the Group. Eric also plans to remain a significant shareholder of the Group. The divisional leaders have overseen the growth and recovery of their divisions for several years, so no material changes on a day-to-day basis are expected as a result. The Divisional MDs and the CFO, Iwan Phillips, will report to the new Executive Chairman (previously NED Chairman), Pe...
The year-end close trading update from Northbridge IS confirms a second consecutive year of profitability, with estimates increasing in reflection of the strong end to the year. Tasman’s momentum seen in H2 19 and Q1 20 faltered in Q2 20 due to pandemic-related manning issues at rigs, albeit with a degree of recovery emerging in Q4 20. Crestchic performed strongly, particularly within manufacturing, with datacentre testing proving to be a strong market. We have increased our adj. PBT estimat...
Quality firms often use a crisis as a catalyst to streamline operations and improve services: not only building in downside resilience, but also winning market share as smaller rivals struggle. We think plant hire specialist Vp falls into this camp. Today saying that revenues had climbed from 55% of pre-Covid levels back in April, to 80% in July - and were now running at circa 85%. Not surprisingly though, the pace of recovery has softened due to recent Covid related conditions. They have pr...
Proving the doubters wrong Northbridge’s results for the 6 months to June were most encouraging, with revenues falling just 4.5% and adj. PBT maintained at breakeven. While the pandemic reduced higher margin hire revenues, the performance of the Group’s North American operations represented particularly good news. Recovery commenced from August within hire and the strong manufacturing order book translated to revenues from Q2. We anticipate normal trading levels resuming from FY21. Despite h...
The H1 pre-close trading update from Northbridge suggests that H1 adj. PBT is likely to be broadly unchanged y-o-y at the breakeven level. This, however, masks a strong Q1 which mostly followed the positive trends seen in 2019 and a COVID-19 related downturn in Q2. Delays to longer-term projects may affect Q3 trading at Tasman, with recovery more likely from Q4. Crestchic sales and rental in advanced economies continues to perform well, with 2020 hire revenues likely to be impacted by reduced ...
The UK Construction PMI literally dropped off a cliff at the start of the Covid-19 lockdowns. But since then there has been a gradual recovery, with June’s 55.3 reading (vs 28.9 in May) being above expectations (47.0), and the highest for 2 years. How is Vp performing? Well, after enduring a sharp -45% decline in April, trading has significantly improved with revenues “now running at >80% of prior year levelsâ€, driven by increased homebuilding, construction & infrastructure activity. An up...
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...
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