Northbridge shares surge despite difficult first half

Industrial services and rental company Northbridge announced its unaudited interim results for the six months to 30 June on Thursday, with positive cash generation from operations falling to £1.7m from £3.3m in the first half of 2015.

The AIM-traded firm reported group revenue 36% lower at £11.8m, and an operating loss widening to £2.4m from £1.7m.

Its pre-exceptional EBITDA was less than half that of 2015’s interim, at £1.6m from £3.4m.

The board did report an ongoing reduction in operating expenses to £4m on an annualised basis, with net debt down 48% to £8.4m.

Northbridge’s net gearing decreased to 19.3% from 39.8% at 31 December 2015.

It did report a positive entry into the US rental market, and continued strong performance from the Loadbank and Transformer division in the UK and Europe.

During the period, it also completed a successful placing and open offer raising a net £5.3m, and broadening its shareholder base.

“Whilst the decline in the oil and gas market continues to hold back the group's performance, we have taken quick and decisive action to reduce our operating costs and strengthen the balance sheet and we are now more optimistic about the longer term future,” said Northbridge chief executive Eric Hook.

At 1146 BST, shares in Northbridge Industrial Services were up 11.37% at 86.31p.