Northbridge secures new orders as production continues

Burton-based industrial services and rental company Northbridge has said its production facilities have remained open during the Covid-19 lockdown – and that it has received new orders during the period.

In a statement to the London Stock Exchange this morning, Northbridge said trading during the first quarter of 2020 was in line with management’s original expectations for the year, albeit with “some weakness” towards the end of the period.

A statement from the company said: “Following the UK lockdown, we have largely been able to maintain factory production under appropriate social distancing and staff welfare working practices. We have a record level of sales orders for this year and this has been our top priority, as the equipment, (mostly used to test emergency backup power systems), is pre -ordered, and frequently paid in full before leaving the factory. This will underpin the Group’s cash planning and will help mitigate any decline in rental revenue.

“Additional new orders have also been received during the lockdown period, and the factory will be running at near capacity for the remainder of the year. Maintaining production enables the group to better manage any liquidity issues during the expected COVID related downturn, as we are able to receive cash deposits, together with trade and invoice financing, prior to the goods being despatched to the customer.”

The statement continued: “Rental operations are either open for business or working on a business continuity basis (despatching goods/accepting deliveries). During the lockdown periods over the last six weeks, all locations have negotiated and delivered new hire orders. This includes equipment for a utility in California, data centres in Europe, nuclear facilities in China and drilling tools and accessories for onshore and offshore, gas, oil and geothermal projects in Australia, New Zealand, South East Asia and the Middle East.

“Whilst the volumes have been lower than prior to the lockdown, demand for both Crestchic and Tasman services currently remain firm. It is unclear whether a relaxation in lockdown measures will lead to a ‘bounce back’ in demand, however up to now most projects have been delayed or postponed rather than cancelled.”

Northbridge said its expects trading to be “adversely affected for some time” due to the fallout from the coronavirus pandemic.