The share price of Northbridge Industrial Services (NBI) fell 15 per cent on the morning the industrial equipment distribution and hire group announced its full-year results. True to January's trading update, the 2014 figures were in line with expectations, but management now expects the 2015 interim figures to be down on the previous year.
While the collapse in oil and gas prices meant tougher trading conditions for the group's Tasman Oil Tools business during the final quarter, full-year pre-exceptional cash profits grew by a quarter to £13.8m. The Aim-traded group incurred £0.7m in acquisition-related costs last year, the bulk of which related to the strategic play for New Zealand-based Tasman. The group has consolidated its Middle Eastern and Australian oil tool rental businesses under the Tasman brand, thereby unifying the Tasman brand name and driving synergies. Pre-tax profits for its Asia-Pacific segment, which includes its Tasman business, grew by half in 2014 to £4.2m.
Prospects for Northbridge's Crestchic business, which designs, manufacturers and sells power source testing equipment, are brighter. The business stands to benefit from an increasingly unreliable global power infrastructure and an increase in the size and remoteness of certain power projects.
Broker WH Ireland expects adjusted pre-tax profits of £7.8m in 2015, in line with this year.
NORTHBRIDGE INDUSTRIAL SERVICES (NBI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 423p | MARKET VALUE: | £78m | |
| TOUCH: | 415-430p | 12-MONTH HIGH: | 609p | LOW: 370p |
| DIVIDEND YIELD: | 1.5% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 252p* | NET DEBT: | 32% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 19.3 | 3.7 | 25.8 | 4.60 |
| 2011 | 24.9 | 2.9 | 15.1 | 5.00 |
| 2012 | 30.8 | 4.9 | 24.0 | 5.425 |
| 2013 | 37.6 | 6.6 | 32.7 | 5.90 |
| 2014 | 44.9 | 6.3 | 28.8 | 6.20 |
| % change | +20 | -5 | -12 | +5 |
Ex-div: 14 May Payment: 3 Jun *Includes intangible assets of £19.6m, or 107p a share | ||||
