Industrial services and rental company Northbridge Industrial Services plc (LON: NBI) booked its first profit since 2014, alongside bumper revenue growth.
The Group’s revenue and cash generation from operations both bounced 33%, to £16.8 million and £2.6 million respectively. Similarly, improved conditions in the drilling tool market saw year-on-year revenue grow 29% in the sector.
This growth in sales led significant gross profit growth of 50%, up to £7.5 million. Further, the Company’s EBITDA spiked 90% to £3.4 million.
Northbridge Industry Services said the improved trading conditions in the equipment services and rental business was led by recovery in the oil and gas market.
Northbridge Industrial Services comments
Chief Executive Eric Hook stated,
“Northbridge is starting to see the benefits from the recovery in activity in the oil and gas markets across both our operating divisions of Tasman and Crestchic. Northbridge’s operational gearing is also now beginning to have a significant beneficial impact on our cash generation.”
“There has now been a significant improvement in the group’s performance, as our traditional energy markets begin to improve, and this has benefited both Crestchic and Tasman. In addition, the new markets which Crestchic was able to exploit during the downturn, most noticeably in data centres and North America, remain available to us and will also provide additional future growth,”
“We are confident of trading volumes for the remainder of 2019 and with a much-strengthened balance sheet, a growing cash flow and further organic opportunities to grow the business, we look forward to the future with optimism.”
Investor notes
The Company’s share price rallied 2.90% or 3.90p, to 138.40p per share 26/09/19 12:46 BST. The Group’s market cap is £38.64 million, their p/e ratio and dividend yield are unavailable.
Elsewhere in industrial and construction news, there have been updates from; Billington Holdings PLC (LON: BILN), Epwin Group PLC (LON: EPWIN), Ashtead Group plc (LON: AHT), SIG plc (LON: SHI), Alumasc Group plc (LON: ALU), Somero Enterprises Inc (LON: SOM) and Wincanton plc (LON: WIN).