Northern Bear cautious about its future

Building services group Northern Bear today said it remains cautiously optimistic about the months ahead on the back of tough trading conditions that were exacerbated by the wettest summer for 100 years.

The Chester-le-Street firm said it managed to reduce its net bank debt from £8m in September 2011 to £6.7m at the same stage this year.

Revenue increased by 3% to £17.7m in the six months to the end of September, compared to £17.2m in 2011 but the group said it continued to experience margin pressure in all markets.

“Order books continue to be healthy and we remain cautiously optimistic with regard to maintaining current levels of trading, although market conditions remain volatile,” a statement issued this morning said.

The group made changes to its management structure during the period, including the appointment of Graham Jennings as MD in July.

"I am confident that the group now has a more effective management structure which will allow it to continue to meet the challenges it faces and which is already delivering benefits to the group," said non executive director Howard Gold.