Northern Bear set to end year ahead of market expectations

(Sharecast News) - Northern Bear said in an update on Thursday that it expects EBIT for the financial year ending 31 March to exceed market expectations, with a projected range of �3.15m to �3.45m.

The AIM-traded company said it had benefited from favourable weather conditions during the winter months, which supported trading in its roofing division, and strong performance in its building services division following recent operational investments.

Growth at Isoler, the company's fire protection business, had continued following its relocation to larger premises, while MGM and Arcas Building Solutions had secured significant contracts.

The firm said its order book remained strong, supporting expectations for a solid end to the financial year.

Northern Bear added that it had decided to close its fit-out operation at H Peel & Sons in Dewsbury due to continued challenges in its core leisure and hospitality markets.

The business and its ongoing contracts would be integrated into Arcas, the company's specialist building solutions division.

Trading losses and expected closure costs had already been factored into the EBIT forecast for the year.

The company said it had also continued to strengthen its financial position, repaying a further �0.5m of term debt raised for the November 2023 tender offer.

That reduced the outstanding balance on the term loan to �1.6m.

Northern Bear said it remained optimistic about its trading outlook and financial performance heading into the end of the financial year.

Reporting by Josh White for Sharecast.com.