2021 was a hugely significant year for Northbridge. Profits rose to the highest level since FY14, achieved whilst amending strategy and a restructuring of the balance sheet. Continuing revenues hit new peaks, reflecting the continued buoyancy of the data centre and renewable energy markets.
Furthermore, trading in Q1 of 2022 was ahead of budgeted levels due to record manufacturing order books and a robust rental pipeline. Demand for load banks continues to be driven by testing within the data centre and renewable energy markets, with recovery taking greater hold within the marine and project markets. We have further increased financial estimates as a result, raising adj. EPS estimates by 12.2% and increasing our dividend pay-out by a third.
Growth looks underpinned by the expansion of rental depots in both new and existing geographies, the new manufacturing facility (raising production by 60%), a renewed focus on fleet utilisation levels, investment in additional hire fleet, and a targeting of higher margin service-related revenues. We also anticipate growth to be further underpinned by energy transition towards renewables and cleaner fuels, coupled with regulatory drivers.
Our upgrades, coupled with a peer group comparison model, support an increase in our fair value/share to 200p at this early stage of the financial year.
