Northbridge to end year profitably as activity levels return

Industrial services and rental company Northbridge updated the market on its trading on Tuesday, reporting that although the Covid-19 pandemic was still having an impact, that was reducing as the year progressed.

The AIM-traded firm said international travel restrictions were still causing some delays to project start dates, but local activity in China, Australia and New Zealand had returned to normal, and business in the United States was described as “active”.

It said rental activity in its Crestchic division in Europe, the UK and the US was “largely” back to pre-pandemic levels.

Factory output was said to have been “briefly impacted” in the fourth quarter after a small number of employees tested positive or needed to self-isolate, although Northbridge said its contingency plans contained the outbreaks, which did not have a material effect on profitability.

“Following a good and profitable first quarter for the group, the second quarter - as previously announced - was the most severely affected by the lockdowns,” the board explained in its statement.

“Northbridge experienced some stability returning to the markets during the third quarter, and it was pleasing to see some particularly good progress towards normality in the fourth quarter to date.”

It said that was “especially noticeable” at Crestchic, where routine testing had been “buoyant” and two large rental projects in leisure and utility power support in Europe and the US were undertaken.

Tasman's performance in a market impacted by international travel restrictions and lower energy prices was described as “resilient”, with trading for the year expected to be ahead of 2019.

“Overall, the board confidently expects the group to be profitable for the year as a whole before exceptional costs,” the directors said.

“For the third year in a row, we expect to start 2021 with a record new-year order book for the sale of loadbanks and a backlog of enquiries for rental projects.”

At 0858 GMT, shares in Northbridge Industrial Services were up 7.72% at 89.95p.