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Northbridge Industrial Services - news of an unexpected impairment but trading remains in good shape
Posted 27/01/12
The pre-close trading statement drew attention to an unexpected impairment, although pre-this exceptional item trading remains in line – consensus eps for 2011 25.05p with a projected dividend of 4.99p
Profits for the year ended 31 December 2011 are expected to be in line with market expectations and trading has remained robust in the majority of the Group’s markets. As a result the house broker isn’t making any changes to their £4.7m adjusted PBT forecast for 2011 and no changes to their adjusted PBT forecasts for 2012 (£6.2m) and 2013.
Tasman Oil Tools (acquired in July 2010) is now fully integrated into the Group and has performed in line with management’s expectations. In addition, it is anticipated that the acquisitions of Loadcell Services and DSG Rental, announced on 13 December 2011 and 16 December 2011 respectively, will make a contribution to the Group’s results in 2012.
The Group also confirmed it was looking to sell certain rental assets that are acheiving low levels of utilization with the sale the proceeds then being released for investment into core hire assets. Unfortunately, as result they have to recognise an ‘exceptional’ impairment provision that would write down the value of the assets to reflect the estimated proceeds should the equipment be sold.
There was a positive outlook statement from the Chief Exec without a hint of the usual ‘cautious optimism’.
Despite the recent recovery the shares remain well off highs and attractively valued
This entry was posted 3 weeks, 5 days ago and was filed under Northbridge Industrial services.
