Research, Charts & Company Announcements
Research Tree offers NORTHBRIDGE INDUSTRIAL SERVI research coverage from 2 professional analysts, and we have 9 reports on our platform.
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|06/10/2016 07:00:09||London Stock Exchange||Director/PDMR Shareholding|
|29/09/2016 07:00:08||London Stock Exchange||Interim Results|
|01/08/2016 07:00:17||London Stock Exchange||Pre-Close Trading Update|
|26/07/2016 07:00:06||London Stock Exchange||Holding(s) in Company|
|29/06/2016 15:25:02||London Stock Exchange||Appointment of Director|
|14/06/2016 15:14:53||London Stock Exchange||Holding(s) in Company|
|02/06/2016 07:00:09||London Stock Exchange||Holding(s) in Company|
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First signs of stabilisation in O&G outlook
29 Sep 16
Northbridge has given the first indication that the deterioration in conditions in its oil & gas markets appears to be levelling off and the electrical testing and O&G tool hire company is “now more optimistic about the longer term future”. H1 results were in line with our estimates made following the 1 August trading update and we are not changing our forecasts for FY 2016 and 2017. At a 2017 EV/EBITDA of 4.4x, we believe the shares look attractive, given that the newsflow appears to have improved. We retain our Buy rec and 123p TP.
Continuing weak O&G demand hits outlook
01 Aug 16
Northbridge has indicated in today’s H1 trading statement that market conditions for most of its oil and gas (O&G) customers have “worsened slightly” during the second quarter and that it has now assumed there will be no improvement in the second half. Although the O&G tool hire and electrical testing systems manufacturing group has seen some more promising early indicators, we have downgraded our estimates. Although we see this as disappointing, a 2017 EV/EBITDA of 4.7x looks attractive for eventual upturn.
No change to outlook in AGM update
27 May 16
Northbridge’s AGM statement reiterates its 18 April preliminary results in stating that market conditions in Oil & Gas remains challenging and “it is still too early to forecast any material changes to the likely full year out turn”. We are not changing our estimates of positive EBITDA but an underlying loss before tax of £1m for 2016. However, the statement emphasised the potential benefits of its operational gearing and strengthened balance sheet when the market does improve.
New financials following fund raising
04 May 16
We have adjusted our EPS estimates and target price to reflect the funds received and shares issued in the company’s successful placement and open offer. The adjusted target price is now 123p offering 35% upside. We continue to rate the stock as a Buy as we believe the fundamental qualities of the business, the impact of the reduced cost base and strengthened balance sheet could put it in a strong position as and when the oil market recovers.
Drilling into cost base as oil slides
18 Apr 16
Northbridge’s performance for 2015 was in line with our expectations as continued revenue declines, particularly in higher margin rental business, were countered by deep cost cutting. We expect this trend to continue in 2016 - 17 and have cut our sales and profit estimates. However, we believe Northbridge has strong market positions and the cost cutting should mean that, when demand does revive, earnings will rebound significantly. We have cut our target price from 223p to 142p (+67%) but restate our Buy view.
Streamlining continues amid weak markets
04 Feb 16
Northbridge’s year end trading statement in our view presents the same picture as at the interims. Results for the year to December 2015 are expected to be substantially in-line with management’s expectations. Although the streamlined group is now better placed to take advantage of any upturn in oil markets, the statement stresses it is too early to predict when that might come in 2016. We have maintained our estimate of a small loss for FY 2016 and retain our Buy recommendation.
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Fighting the waves
25 Oct 16
Management action in response to a tough trading climate and falling profits should contribute to a sound recovery in profits next year. Following share price weakness, the group is valued at a substantial discount to both the broking market leader Clarkson and to other peers. Meanwhile, if the dividend can be held, the shares offer a well above-average yield, pending an eventual improvement in trading conditions.
21 Oct 16
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FY17 expectations unchanged. Interim dividend maintained
25 Oct 16
Interims reflect tough markets which impacted Technical. Shipbroking delivered a resilient result and Logistics has performed well. The interim dividend has been held at 9.0p. The group anticipate an improvement in H2. The Board’s expectations for the year are unchanged based upon the strength of the order book due in H2, its ongoing market coverage and the benefits of action taken previously. We have retained our FY2017 PBT forecast of £8.7m and a maintained dividend. We reiterate our Buy and adjust our TP to 450p.
Doing things differently
25 Oct 16
Growing pains have impacted on its operational performance (EBIT margins 5.8% FY15 vs 12.2% FY13) and the HSS Hire valuation is at distressed levels (price to book 0.4x vs 1.3x at the time of the float). As the top-line catches up with the expanded cost base and the roll-out of the NDEC leads to greater efficiencies, margins and returns will rebound. Historical experience has shown that price to book ratios typically match these improvements (see Ashtead FY08-FY15, price to book expanded +196%). Therefore, we see scope for material upside in the share price as the expected operational recovery to progress. Our 12 month target of 115p equates to a 0.8x price to net operating assets
Risks discounted leaving significant upside
18 Oct 16
FY 2016 sales grew strongly at +22% but EPS growth lagged at +3% (our revised forecast -1%) as staff attrition and significant investment in new services held back profitability. Conversion of profit into cash improved significantly, at 240% in H2, as shorter payment terms and a lower level of extensions also benefited. We make no major changes to our forecasts and reiterate our view that Utilitywise is at the forefront of a changing energy market, supported by investment in innovative technology. The current valuation is entirely focused on the short-term challenges and ignores the growth potential supported by the new services.