Group FD ousted as oil & gas woes see Northbridge make H1 loss
STAFFORDSHIRE-based engineering group, Northbridge Industrial Services has outlined just how badly the decline in the oil & gas sector has impacted on its business.
For the six months to June 30, 2015, the group revenue was down 12.3% to £18.6m (2014: £21.2m) and the company revealed a pre-exceptional operating loss of £0.3m (2014: profit of £3.6m).
The performance has cost the Group Finance Director his job.
To raise funds the company has disposed or closed various non-core operations, generating around £1.5m in cash. It has also implemented cost saving measures in order to save a further £1.5m.
As part of the cost cutting, it has reduced the number of senior staff positions. As a result Craig Robinson, the Group Finance Director, is leaving the company with effect from today. As a more streamlined group, the company said it did not intend bringing in a new external replacement until a recovery was visible and growth opportunities returned.
Commenting on the results and the outlook, Eric Hook, chief executive, said: “The group has acted quickly and decisively during the current crisis in the Oil & Gas industry, exiting non-core activities, raising cash and cutting costs. These actions have now been largely completed and will not compromise its ability to benefit from any future upturn and the group is well positioned to grow when more stable market conditions return.”
Following Robinson’s departure, the finance director functions will be assumed by Iwan Phillips, the company secretary and financial controller, supported and supervised by the three qualified accountants on the board, namely the chairman, the CEO and Ash Mehta, the former finance director.
