12 November 2021

Northern Bear plc

("Northern Bear" or the "Company")

Trading update

The board of directors of Northern Bear plc (the "Board") is pleased to provide an update on trading for the six-month period ended 30 September 2021 ("H1 FY22") for the Company and its subsidiaries (together, the "Group").

In our last Annual Report and Accounts published in July 2021, we noted the industry-wide challenges with respect to both availability and price inflation of construction materials.  There have also been well-publicised challenges in relation to attracting and retaining employees in the construction industry.

We have always sought to create long-term value via strong relationships with all of our Group's key stakeholders.  Our companies have strong and well-established supplier relationships and have been able, on the whole, to work with our robust supply chain to ensure continuity of supply for contracts.   We have also managed to retain the large majority of our loyal and high quality workforce, despite the ongoing industry staffing issues. 

Despite the impact of these headwinds on our operations, our Group has traded well in H1 FY22 and we expect to report operating profit, stated prior to amortization and other adjustments (in the format used in our last full year results), in the range of £1.4m to £1.5m for the period (H1 FY21: £0.5m)  This would represent an increase on the pre-COVID comparative from H1 FY20 of £1.4m. As at 30 September 2021, the Group had a net cash position of £0.6m.  

Our forward order book remains strong and should support our trading performance in the coming months, subject to the ongoing supply chain and staffing challenges noted above and whilst there remains a level of uncertainty over the long-term outlook for COVID-19. 

The above estimates are subject to finalisation of the Group's unaudited interim results, which are expected to be released in the week commencing 22 November 2021.

Jeff Baryshnik, Chairman of Northern Bear, commented:

"We are pleased to announce strong expected operating results for H1 FY22, despite ongoing industry-wide challenges."

"It is a testament to the executive team and subsidiary operating teams that H1 FY22 results are expected to exceed those from the comparable pre-pandemic period of H1 FY20. With a strong forward order book, we are well positioned to continue to generate a more normalised level of profitability."

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The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.