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Northern Bear PLC on Monday reported a narrowed annual loss but outlined a cautious outlook as increasing costs for construction materials impact the business.
For the financial year that ended March 31, the Newcastle-based building services firm said its pretax loss narrowed to £879,000 from £1.6 million a year ago. Revenue grew 24% to £61.1 million from £49.2 million.
The company said in recent months, it considered two acquisitions that would have been profitable, but they ‘did not come to fruition.’
Northern Bear decided against declaring a dividend.
‘Any future dividends would be in line with the group's relative performance,’ it explained.
‘Industry-wide challenges continue with respect to both the availability and price inflation for construction materials,’ the company said.
It added it expected ‘short-term headwind to operations until industry supply and demand revert to more typical levels.’
The firm touted, however: ‘Our companies have strong and well-established supplier relationships and, on the whole, have been able to work with our robust supply chain to ensure continuity of supply for contracts.’
Northern Bear shares were 7.4% lower at 53.25 pence each in London on Monday morning.
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