Northern Bear : interim report 24 Nov 2025 (Northern Bear PLC interim report 24 Nov 2025.pptx)

About this update from Northern Bear Plc

Northern Bear Plc Interim Results 24 th November 2025 Presenter John Davies CEO 2 Welcome A welcome from the CEO Introduction to the business and half year update for shareholders Highlights A high-level overview of the Group's key achievements and milestones over the past 6 months H1 Financial Performance A snapshot of the Group's financial health and setting out the financial highlights in past 6 months Strategic and operational update An update the Group's strategic focus areas. The Group Specialist Building Services Materials Handling Roofing Northern Bear plc Northern Bear plc is an AIM quoted specialist building services provider serving the support services sector. The Group comprises ten businesses in Northern England covering roofing, materials handling, and specialist building services. Clients include local authorities, housing associations, NHS trusts, universities, hotels, construction companies and national house builders. Each company within the Group operates as an autonomous business, with Northern Bear providing Group strategic management and financial consolidation. Operational Improve client engagement Improving our value proposition Improve in group communications Strategic support to Business MD's Process and governance Strengthened Targeting growth opportunities Fire stopping focus De-carbonisation growth Investment in our people and premises 5 Brand development Highlights Financial Revenue- H1 £49.4m Up 30% from prior year Gross margin -H1 £24.7% Up by 0.9% from prior year Adjusted Operating Profit* £4.1m Includes £1.3 million non-Reocurring profit Cash generation in period positive £3.1m Adjusted EPS* 21.9p Includes £1.3 million Non-Re-occurring profit Term Loan fully repaid £1.45m All restructure debt repaid * All figures include a £1.3 million no re-ocurring profit in the H1 period. 6 7 Financial Performance Group Income Statement 6 months 6 months ended 30 ended 30 Year ended September September 31 March 2025 2024 2025 £m £m £m Revenue 49.4 37.6 78.1 Cost of sales (37.2) (28.7) (58.9) Gross profit 12.2 8.9 19.2 Gross margin 24.7% 23.8% 24.6% Net operating costs (8.1) (7.2) (15.8) Operating profit 2 4.1 1.7 3.4 - Group revenue increased 31.4% to £49.4m compared to H1 FY25. Gross margin increased by 0.9% to 24.7%. Net operating expenses increased by £3.3m to £12.2m Operating profit increased £4.1m in H1 FY26 but includes a non-recurring operating profit of £1.3m. Adjusting items Amortization charges Losses in relation to the closure of H Peel & Sons Limited Basic EPS increased from 8.4p per share to 21.9p. Adjusting items 1 - 0.4 Adjusted operating profit - - 3.8 Net finance costs (0.1) (0.2) (0.3) Profit before tax 4.0 1.5 3.1 Corporation tax (1.0) (0.4) (0.7) Profit for the period 3.0 1.1 2.4 Basic EPS 21.9p 8.4p 16.8p Adjusted for amortisation and losses relating to the closure of H Peels & Sons Limited Includes non-recurring operating profit of £1.3 million Balance sheet Sep-25 £m Mar-25 £m Goodwill and intangible assets 15.4 15.4 Property, plant and equipment - hire fleet 4.1 4.0 Property, plant and equipment - Other 3.8 3.4 Stocks and WIP 1.7 1.5 Trade and other receivables 18.3 14.3 Cash 3.8 4.0 Trade and other payables (19.8) (16.5) Bank loans - (1.5) Non-current creditors (2.5) (2.3) Net assets 24.8 22.3 Annualised ROCE 29.9% 13.3% Key points to note are: Intangible assets are goodwill and other intangibles created through acquisitions. PPE is mostly motor vehicles and the materials handling fleet. Net working capital is principally customer and supplier balances. These can fluctuate significantly on a month-to-month basis. The Group carries limited inventory. The Group had £2m of unutilised working capital facilities at September 2025. Bank loans - Repaid in full in September 2025 out of operating cash flows. Increase in annualized Return on Capital Employed ('ROCE') from 13.3% to 29.9%. Cash generation Cash from operations -Significant cash generated in the year through strong trading performance and good working capital management. Capital expenditure - Ongoing investment in fleet in the Materials Handling business. Loan repayments - Operating cash flows facilitated £1.45m repayment of bank loan. Other financing cash flows -Relate to lease finance costs and repayments. Ordinary Dividend of 2.0 pence per share plus 1.0 pence per share special dividend paid in the period. 11 Strategic and Operational Update Key Group strategic drivers Recognise and reward success with our people Invest in our services Improved communication to businesses Focus on cash generation Public / private client balance Improve the quality of the opportunity 12 Up-value our offering Building services Divisions Emerging trends Client's funding - target public sector and blue-chip private clients. Growth - affordable homes funding. Increasing prevalence of public sector work - decarbonisation and affordable homes. Increased regulation - in our area of delivery. Market - Investing in business development to maintain position. Strategy Focus areas Raise profile - investing in Business development teams to maintain market position in a toughening market Carbon reduction offering for education and health sectors - Continue to improve our offering with Listers Up-Value our offer - developing with Husk existing garage site repurposing for additional housing. Framework & Public Sector Contracts - Ensure we are fit for purpose for LA legislative challenges ( Awaab's Law) Investment-led growth: Investing in people and premises to support growth. Health, Safety and training - focus on supporting business in strategic targets as well as high levels of safety compliance. Isoler Divisions Emerging trends Increased Regulatory Drivers including: Building Safety Act - impacting private and public sector resource shortages. Building owners held accountable - improve building safety by legislation. Grenfell effect - driving opportunities in all sectors. Tier one contractor remedial works -negotiated works rather than tender. Strategy Focus areas Building Safety Compliance - Compliance team are developing be spoke solutions for clients that's will in time develop into live contracts for Isoler. National Delivery - developing strategies and resource to deliver nationally for clients . End user clients - provide holistic solutions to existing premises offering passive fire system that will enable customer operations to continue. Public Sector Frameworks - We are focusing on developing longer-term, public-sector contracts to maintain the balanced mix in client base. Training & Accreditation - Continue to maintain highest standards in installation with our in-house team. Roofing Divisions Emerging trends Strong pipeline of new build homes and retrofitting programs across housing associations and councils. Rising demand for solar PV integration driven by energy planning legislation and energy costs. Increase in capital expenditure - public sector has to improve buildings roofing due to lack of investment. Strategy Focus areas Solar PV Roofing Solutions - Design and installation of integrated PV roofing systems for new builds and retrofits increasing value of our offer. Investment for growth - in new depots to facilitate PV Wensley and new upgraded depot for Jennings. Partnerships with Housebuilders - Strategic alignment with developers to develop longer term frameworks. Balanced portfolio - maintain balance of public and private sector clients. Strong supply chain strategy - to counter market volatility and drive efficiencies through volume. Training & Upskilling Workforce - Capability to install PV, green roofing, and a wider offering. Materials Handling Divisions Strategy Focus areas Compliance-Leveraged Leasing - Lease package offering with fully compliant maintenance and buyback options provided. Electrification and Fleet Modernisation - Electric forklift leasing / sales aligned with ESG and decarbonisation strategies. Brand - as Mitsubishi franchise we reflect the high market position that we deliver to market - depot / training / service. Short-Term Equipment Hire - Flexible, certified forklift rental for seasonal or project-specific use. Operator Training & Certification - RTITB/ITSSAR accredited training as a service to lease customers. Widen offering - racking systems and cleaning systems. Look at new clients - actively tendering larger clients to bring more long-term stability. Emerging trends Shift toward electric-powered fleets driven by sustainability and operational efficiency. Increased outsourcing of equipment ownership to reduce compliance and capex burdens. Greater integration of telematics and fleet tracking for usage-based leasing and safety monitoring. Chinese product offer and tougher market -aggressive marketing of alternative products in a reducing market. 17 Inorganic strategic priorities Established business Companies with well-established business models and market positions in the North of England, supporting social housing, construction and infrastructure. Businesses that would benefit and improve with a group support structure in place Resilient Businesses showing resilience to the challenges of labour/materials cost inflation, and skilled labour shortages in recent years. Balanced client mix A good mix of blue-chip private and public sector clients. Future growth opportunities Both regulatory-driven and investment-led: Fire solutions Roofing Affordable Housing Decarbonisation Key points Overall trading performance has been good, with the key features being: As year progresses, we are seeing a tightening of the market in the private commercial sector. Growth in both revenue and margin in the first 6 months. One off non-reoccurring profit has positively impacted the profits in period only. Diversified customers and sectors. Strong cash generation from trading is being maintained. Bank loan now paid off. Continue to develop a wider offering to a balanced mixed client base and provide reliance against some market volatility. Continue to invest in businesses to offer higher value services. 18 Building Services growth opportunities, both customers and geography, incorporating the Isoler business. Questions 19 Disclaimer The information contained in this document ("Presentation") is directed at (i) members or creditors of a corporate body within the meaning of Article 43 of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005, as amended ("Order"), (ii) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Order, or (iii) those persons to whom it can otherwise be distributed without contravention of article 21 of the Financial Services and Markets Act 2000 ("FISMA") or to whom it can lawfully be distributed. This Presentation has been prepared by Northern Bear plc (the "Company") and provided to you for information purposes only. This Presentation is not an invitation or inducement to engage in an investment activity for the purposes of FISMA. This Presentation has not been approved by an Authorised Person (as defined in s31 FISMA), as would be required for financial promotions under s21 FISMA and, for the avoidance of doubt, is not a financial promotion for the purposes of FISMA. If, contrary to the above, this Presentation is deemed to be a financial promotion for the purposes of FISMA, the Company relies on the exemptions set out in Articles 19, 43, 59 and 69 of the Order, which exempts companies admitted to trading on relevant markets making certain communications. Please note that any indication of past performance should not be relied upon as a guide to future performance. The information in this Presentation has not been independently verified and may be amended and supplemented as the Company sees fit. The information in this Presentation may not be relied upon for the purposes of entering into any transaction and should not be construed as, nor be relied on in connection with, any offer or invitation to purchase, subscribe for, underwrite or otherwise acquire, hold or dispose of any securities of the Company, and shall not be regarded as a recommendation in relation to any such transaction whatsoever. The information in this Presentation should not be considered legal, tax, investment or other advice, and any investor or prospective investor considering a purchase, subscription for, underwriting, acquisition, holding or disposal of any securities of the Company should consult with its own counsel and advisers as to all legal, tax, regulatory, financial and related matters concerning such a transaction and their suitability for such investor or prospective investor. This Presentation does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any security, nor shall there be any sale, issuance or transfer of the securities referred to in this Presentation in any jurisdiction in contravention of applicable law. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. and no responsibility or liability is or will be accepted by the Company or by its officers, employees or agents in relation to the adequacy, accuracy, completeness or reasonableness of this presentation, or of any other information (whether written or oral), notice or document supplied or otherwise made available to any recipient. This Presentation is governed by and shall be construed according to English law. This Presentation has been prepared in accordance with English law and the information disclosed may not be the same as that which would have been disclosed if this presentation had been prepared in accordance with the laws of jurisdictions outside of England and Wales. Any persons who are subject to the laws of any jurisdiction other than England and Wales should inform themselves about and observe any applicable requirements. This Presentation may contain forward-looking statements that involve substantial risks and uncertainties, and actual results and developments may differ materially from those expressed or implied by these statements. These forward-looking statements are statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results of operations, financial condition, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company reports under International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, as adopted for use in the UK. The financial information in this presentation is a summarised version of that reported in the Company's annual and interim reports and financial statements and may contain rounding adjustments or other amendments for information purposes. This presentation does not include all disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2 C 0 ompany's Annual Reports and Financial Statements. All opinions expressed in this presentation are subject to change without notice and may differ from opinions expressed elsewhere. If any recipient would like any further information on the Company, they should contact the Group CFO, Julian Davis via [email protected] . Northern Bear Plc

View stock analysis, news, and events for Northern Bear Plc