Building services specialist Northern Bear has delivered impressive half-year results, revealing substantial growth in both revenue and profits driven by strategic investments across its operations.
Financial Performance Exceeds Expectations
The Newcastle-based company, which trades on the London Stock Exchange's AIM market, reported trading slightly ahead of expectations for the six months ending September. Revenue climbed to £49.4 million, a significant increase from £37.6 million during the same period last year, representing growth of approximately 31%.
Operating profit showed even more dramatic improvement, rising to £4.1 million compared to just £1.7 million in the first half of the previous financial year. The results were bolstered by a non-recurring operating profit of £1.3 million.
Strategic Investments Driving Growth
Northern Bear's leadership attributed the strong performance to ongoing investments across its portfolio of businesses. The group reported that all divisions demonstrated robust underlying trading performance during the first half of FY26.
Significant developments include the expansion of Jennings Roofing Limited, which will occupy the former H Peel & Sons site in Dewsbury. The fit-out at this location is expected to be completed by the end of the year.
At Wensley Roofing Limited, the company has successfully moved into new premises, positioning itself for anticipated growth in the solar panel installation market. Meanwhile, investment in Isoler Limited has enabled the building integrity services outfit to establish an experienced compliance team, broadening its service offering to clients.
The Gateshead-based Alcor Handling Solutions Limited has also benefited from investment, specifically in its materials handling fleet.
Market Challenges and Strategic Response
Despite the positive results, Northern Bear offered a cautious outlook for the coming year. The company described market conditions as largely flat across its major operating regions and warned that market pressures were beginning to affect some businesses, including Arcas Building Solutions Limited and Jennings Roofing Limited.
The group explicitly told investors it does not expect any market uplift in the next 12 months, highlighting challenges facing the sector.
Earlier this year, Northern Bear made the strategic decision to close its fit-out operation at H Peel & Sons in Dewsbury, a business it acquired eight years ago. The closure was attributed to the downturn in the leisure and hospitality sector following the COVID-19 pandemic. The operation was integrated into Arcas in the North East, resulting in trading losses of £200,000.
Simon Carr, non-executive chairman of Northern Bear, commented: "I am pleased to report that the group's financial position remains robust, with continued progress being achieved toward our medium-term goals. The current performance reflects the benefits of ongoing investment, an element of organic growth, and disciplined cash management, all of which have contributed to a solid set of results for the period."
He added his appreciation for employee dedication and thanked shareholders for their continued support.
Looking forward, the company reported that its forward order book remains stable and should support trading performance in the coming months. Northern Bear employs approximately 500 people and has been listed on the AIM market since 2006.
