Industrial services company recovering after “very difficult” 3 years

Stoke-on-Trent industrial services and rental company, Northbridge Industrial Services, has increased its group revenue by  7.9% to £25.7m, according to its preliminary results for 2017. 

 Cash generated from operations has increased by 48.5% to £2.6m, the company has announced. 

This year, Northbridge has reorganised the group’s debt facilities until 2021, including the issuance of £4m of loan notes supported by an existing shareholder.

Northbridge sayss the oil market’s sustained recovery since summer 2017  – which has stabilised the crude oil price at its highest level in three years – has given the industry confidence for the future, as well as improved cash flow. 

Eric Hook, chief executive officer, said, “After an unprecedented three very difficult years in the oil and gas industry, which have adversely affected both parts of our business, we now believe that a recovery is in sight.

“During 2017 we saw a stabilisation in our oil tool revenues albeit at a very low level, as actions taken by the producer nations have largely eliminated crude oil surpluses.

“The additional cash flow enjoyed by the industry due to higher oil prices; is now enabling a return to investment in exploration and production, which will benefit both Tasman Oil Tools and Crestchic Loadbanks. The work we have undertaken to re-organise the Group and reduce costs over the last three challenging years will also help us return to profits in the future.

Northbridge says it is “very well placed” to benefit from the current recovery. The company has completed its restructuring and now has a lower cost base, and expects to exploit its “high operational gearing”. The expected additional revenue will support bottom-line growth, it states.