Northern Bear boosts dividend, eyes acquisitions

11th Jul 2016 16:10

(ShareCast News) - Northern Bear disclosed a significant reduction in its net bank debt and proposed a significant increase in its full-year dividend payout.The company, which provides specialist building services to local authorities, housing associations and NHS trusts among other clients, reported a 12.6% drop in sales for the full-year to 31 March, despite which profits before tax were unchanged at £1.9m.Net bank debt was slashed from £4.8m to £2.5m on the back of a strong trading performance and some favourable payment terms on newer contract work.In parallel, cash from operations was boosted from £2.4m to £3.7m.Steve Roberts, Executive Chairman of Northern Bear, said "the results for the year ended 31 March 2016 were in line with the excellent achievements in the previous year. This has resulted in a further significant decrease in bank debt, which will allow us to continue with a progressive dividend policy for the benefit of shareholders.We are very pleased with the continued progress, particularly given the impact of weather conditions on our ability to trade on site in the second half of the year [...]".The company proposed an increase in its full-year final dividend from 1.5p to 2.0p.Newcastle upon Tyne-based Northern Bear also hinted that a small number of bolt-on acquisitions might be in the offing but added that it would only execute transactions "where we are confident that it will broaden the Group's service offering, predictably enhance earnings and provide an attractive return on investment for our shareholders".Shares of Northern Bear finished the session up by 10.84% at 46.0p.