Northbridge has set out its detailed plans for expanding the Crestchic business:
- investment in new rental hubs,
- widening the geographical and sector reach,
- focus on the fastest growing/ non-cyclical sectors, the opening of the new factory,
- and growth in parts and service revenues.
All investment required will be funded from their existing facility with limited debt on the balance sheet. We think the outlook looks very promising, as highlighted by the return of dividend payments for FY21.
The decision to focus on Crestchic was conveyed to investors approximately a year ago and followed the start of a Board reorganisation. The balance sheet was restructured and the decision to extend the Group’s manufacturing facility taken. Throughout the changes, Crestchic performed strongly, aided by strong growth in both manufactured sales and significantly higher margin hire revenues.
The presentation reinforces our long-held view that the outlook for Crestchic is an exciting one and our forecasts remain as detailed in the recent note (21 Feb) with a current fair value of 189p/share.
