Northbridge (AIM:NBI) revealed to investors this morning that overall trading for the six months ended 30 June 2020 has remained resilient despite the coronavirus pandemic.
The industrial services and rental firm said total revenue for the period was down by just 4.8% compared to last year, primarily in the second quarter as the UK lockdown took effect.
Northbridge stated that the revenue mix between sales and rental and its two core supply companies Crestchic and Tasman Oil Tools had fluctuated widely over the period as a result of the ‘various pandemic responses’ throughout the group’s regional networks.
Its rental operations were also affected by the lack of access to customer sites, border closures, quarantine regulations, and a lack of rig crews due to international travel bans.
Despite this, the group said its UK manufacturing site maintained production and deliveries throughout and orders for the sale of load banks have remained ‘at record levels.’
Shares in Northbridge have traded consistently over the last two weeks and opened 0.56% higher this morning at 90.5p.
The company highlighted that towards the end of the second quarter it had experienced the beginning of a return of some rental volumes, particularly in Crestchic power reliability work.
Crestchic manufacturing started 2020 with its largest ever new year order book for the second consecutive year and continues to perform ‘exceptionally well’ it said.
Northbridge said that a decrease in revenue will be mostly offset by a reduction in operating costs and around £0.2 million of various government support. It said it expects the overall trading result for the first six months of 2020 to be similar to the same period in 2019.
Net debt was £6.3m at 30 June compared to £6.4m at 31 December 2019: £6.4m while Net bank debt was £2.3m at 30 June (31 December 2019: £2.4m) with cash on hand of £4.1m.
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