Directors at North East construction group Northern Bear expect to see a 5% boost in profits this year after a lift in trading.
The AIM-listed group of companies providing specialist building and support services, which is headquartered in Prestwick, issued an update to shareholders highlighting the expected boost in operating profit, despite its building services division taking a hit. In interim results for the six months to September 30 2022, the Newcastle group reported strong operating results despite ongoing industry-wide challenges in terms of attracting and retaining employees in the construction industry.
Based on management information for the 11 months to February 2023, the group said it has traded ahead of the prior year’s results except for a provision at the Northern Bear Building Services Limited subsidiary. The provision is anticipated to be in the range of £500,000 to £750,000, to account for certain unprofitable contracts.
