Business
Northern Financial estimates fiscal 2006 results; Reports on Lakeside Steel investment
Northern Financial estimates fiscal 2006 results; Reports on Lakeside Steel investment.
About this update from Jura Energy Corporation
[{"type":"text","content":"\n\n\n\n\n(TSX: NFC)\n\nTORONTO, June 12 /CNW/ - Northern Financial Corporation (TSX: NFC)\n(\"Northern\" or the \"Company\") today reported estimated results for its fiscal\nyear ended March 31, 2006 pending the finalization of such results and also\nreported on an investment in Lakeside Steel Corporation through a Northern-led\ninvestor group.\n\nEstimated Financial Results\n\nNorthern estimates revenue of approximately $26,000,000 for the March 31,\n2006 fiscal year and net income of approximately $1,000,000, which may be\ncompared with revenue of $15,037,055 and a net loss of $3,176,734 for the\nfiscal year ended March 31, 2005.\nNorthern estimates approximately $19,600,000 in cash, deposits,\nsecurities and long-term investments compared with $15,190,476 as at March 31,\n2005.\nNorthern anticipates issuing its final year end results in the next 10\ndays.\n\nLakeside Steel Corporation\n\nIn its merchant banking business, Northern invests its own capital\nalongside its clients in the shares of undervalued companies identified by\nNorthern. These investments provide Northern with the opportunity to earn a\npercentage of the profits realized by the particular investor group led by\nNorthern.\nNorthern has formed investor groups in several companies including\nProprietary Industries Inc. (TSX:PPI) where Northern owns approximately 11% of\nthe issued shares. The estimated results for March 31, 2006 include the\naccrued net gain to Northern for its ownership position in Proprietary.\nNorthern recently formed an investor group which acquired approximately\n48% of the issued shares of Lakeside Steel Corporation (\"Lakeside\") for\n$3,000,000. Northern invested $400,000 in the investor group. Lakeside is one\nof Canada's largest steel pipe and tubing manufacturers. Lakeside owns three\nsteel pipe and tube fabricating facilities located on 92 acres of land in\nWelland, Ontario. The total plant capacity is 200,000 tonnes. Lakeside employs\napproximately 500 employees. Lakeside's tubular steel products are primarily\nfor the oil and gas, mining, automotive, distributor, manufacturing and\nfabricating businesses.\nThe business carried on by Lakeside was acquired by Stelco Inc.\n(\"Stelco\") in 1963 and was sold by Stelco to Lakeside on October 31, 2005,\nwith Romspen Investment Corporation through an affiliate (\"Romspen\") being the\nso...