The H1 pre-close trading update from Northbridge suggests that H1 adj. PBT is likely to be broadly unchanged y-o-y at the break-even level. This, however, masks a strong Q1 which mostly followed the positive trends seen in 2019 and a COVID-19 related downturn in Q2. Delays to longer-term projects may affect Q3 trading at Tasman, with recovery more likely from Q4. Crestchic sales and rental in advanced economies continues to perform well, with 2020 hire revenues likely to be impacted by reduced testing in the Middle and Far East, related to natural resources and shipyards. We think the combination of the NAV, marked discount to its peer group and the positive medium-term outlook offers strong support to the shares.
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Cautious optimism
- Published:
12 Aug 2020 -
Author:
David O’Brien -
Pages:
2
The H1 pre-close trading update from Northbridge suggests that H1 adj. PBT is likely to be broadly unchanged y-o-y at the break-even level. This, however, masks a strong Q1 which mostly followed the positive trends seen in 2019 and a COVID-19 related downturn in Q2. Delays to longer-term projects may affect Q3 trading at Tasman, with recovery more likely from Q4. Crestchic sales and rental in advanced economies continues to perform well, with 2020 hire revenues likely to be impacted by reduced testing in the Middle and Far East, related to natural resources and shipyards. We think the combination of the NAV, marked discount to its peer group and the positive medium-term outlook offers strong support to the shares.