5 April 2023

Northern Bear plc

("Northern Bear" or the "Company")

Strategy, Dividends, and Trading Update

The board of directors of Northern Bear plc (the "Board") provides an update on its corporate strategy, dividend policy, and trading for the Company and its subsidiaries (together, the "Group") for the year ended 31 March 2023 ("FY23").

This update and the proposed dividend set out below are provided subject to the finalisation of our audited results for FY23. The Group's unaudited preliminary results for FY23 are expected to be released in the week commencing 17 July 2023.

Strategy and Dividends

After a review of strategy and dividend policy, the Board is pleased to report that the Group will pursue a dividend growth strategy supported by the organic progress of the Group's businesses and, to the extent accretive, bolt-on acquisitions. To that end, the Group is pleased to announce its intention to declare an ordinary dividend of 4p per share plus a special dividend for FY23 of 1p per share. Going forward, the ordinary dividend is expected to be paid semi-annually, with half paid after each of the year-end period and the half year period, respectively. Additionally, the Company intends to further increase its engagement with the broader investment community.

Trading update

In the interim report for the six months to 30 September 2022 ("HY23"), we reported that the Group generated strong operating results despite ongoing industry-wide challenges with respect to attracting and retaining employees in the construction industry. Based on management information for the eleven months to February 2023, the Group has traded ahead of the prior year's results except for a provision at our Northern Bear Building Services Limited subsidiary, anticipated to be in the range of £500-£750k, to account for certain unprofitable contracts. The Board expects that operating profit for FY23, stated before amortisation, one-off costs, and other adjustments (in the format used in prior years' results, "adjusted operating profit") should exceed £2.75 million (or £2.0-£2.25 million of reported operating profit net of the provision), and we anticipate a net cash position for the Group at year-end. As we have emphasised previously, the net cash or bank debt position can vary significantly and rapidly given the nature, size, and variety of contracts and their associated working capital requirements.

Jeff Baryshnik, Non-Executive Chairman of Northern Bear, commented:

"We are pleased to announce strong expected operating results for FY23 and are excited to implement our dividend growth strategy. We look forward to further engaging with shareholders and the wider investment community to inform them about the Group."

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.

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