**Summary of Northern Bear Plc Interim Results for H1 FY26 (Six Months Ended 30 September 2025)**
**Financial Performance Highlights**
**Revenue Growth** Revenue increased to **£49.4 million** (H1 FY25: £37.6m), driven by strong performances across all operating divisions.
**Profitability**
Gross profit rose to **£12.2 million** (H1 FY25: £8.9m), with a gross margin improvement to **24.7%** (H1 FY25: 23.8%).
Operating profit surged to **£4.1 million** (H1 FY25: £1.7m), including a **£1.3 million non-recurring operating profit**.
EBITDA increased to **£4.9 million** (H1 FY25: £2.5m).
Basic earnings per share (EPS) rose to **21.9p** (H1 FY25: 8.4p).
**Cash Flow** Cash generated from operations was **£3.1 million** (H1 FY25: £2.2m). The Group fully repaid the **£1.45 million Virgin Money term loan** in September 2025.
**Dividends** Equity dividends paid totaled **£0.5 million** (H1 FY25: £0.3m).
**Non-Recurring Operating Profit**
A **£1.3 million non-recurring operating profit** was recognized during the period, arising from normal trading activities but not expected to recur. Excluding this, operating profit would have been **£2.8 million**, EBITDA **£3.6 million**, and EPS **15.0p**.
**Operational and Strategic Updates**
**Investments in Growth** Continued investments in operations to support future revenue growth, including
**Jennings Roofing Limited** Planned fitout of a new site by 31 December 2025.
**Wensley Roofing Limited** Relocated to new premises to expand solar panel installation capabilities.
**Isoler Limited** Strengthened compliance team to broaden service offerings.
**Alcor Handling Solutions Limited** Ongoing investment in materials handling fleet.
**Discontinued Operations** H Peel & Sons Limited, discontinued from 31 March 2025, incurred **£0.2 million** trading losses in H1 FY25.
**Market Conditions and Outlook**
Market conditions remain largely flat, with pressures affecting some businesses, particularly **Arcas Building Solutions Limited** and **Jennings Roofing Limited**.
The Group expects no market uplift in the next 12 months but remains **slightly ahead of market expectations** for FY26.
Full-year FY26 results are expected to be broadly consistent with FY25 performance, adjusted for the non-recurring profit and H Peel & Sons losses.
Forward order book remains stable, supporting near-term trading performance.
**Leadership Changes**
**Julian Davis**, Group CFO, stepped down in October 2025. A successor search is underway.
**Steve Roberts** stepped down as Executive Director but remains part of the Senior Leadership Team.
**Josh Watson** was promoted to sole Managing Director of Isoler Limited.
**Chairman and CEO Commentary**
**Simon Carr CBE** (Chairman) highlighted the Groups robust financial position, ongoing investment, and disciplined cash management.
**John Davies** (CEO) emphasized resilient performance, strategic investments, and the dedication of employees, while acknowledging market challenges.
**Conclusion**
Northern Bear Plc delivered strong H1 FY26 results, underpinned by revenue growth, improved margins, and strategic investments. Despite market pressures, the Group remains optimistic about its outlook, supported by a stable order book and continued operational focus.