Northern Bear – with Interims due shortly, building services group’s shares are on upward push, now 117p, new TP 140p

Mark Watson-Mitchell
9 hours ago
2 min read

Mark Watson-Mitchell – 13.11.2025

On Thursday 7^th August I considered that the shares of Northern Bear (LON:NTBR), then 99p, were significantly undervalued, while having the prospect of easily trading the 120p/135p price range in due course.

They have subsequently touched 118p a couple of times and closed last night at 117p.

We are now very close to the group announcing its Interim Results, which should help to generate a great deal more interest in its progress.

The Business

Established in 2006, Northern Bear specialises in providing specialist building services to local authorities, housing associations, NHS trusts, universities, construction companies, and national house builders throughout Northern England.

The company operates across three segments: Roofing, Materials Handling, and Building Services.

It is located at in Newcastle Upon Tyne and has a rich history of providing specialised construction services to various sectors in the region.

Broker’s View

Analyst Niall Pearson, at Hybridan, recently posted a very Bullish Appraisal on the group.

When the group’s shares were trading at 107.50p he commented that the H1 Trading Update to end-September had reported that the business was running above expectations and accordingly the broker’s forecast was upgraded (moderately).

He noted that:

“As the FY is March 2026, and the roofing division which accounts for 42% of turnover, is weather dependent, we have hopefully kept some power dry.

There was another pleasant trading surprise of a £1m non-recurring profit being recognised.

The strategy remains to invest in developing people and facilities to drive core building services growth with improved efficiency.

This is easily funded by working capital as cash is expected to increase to £5.5m.

The reported improvement in the operating business is a result of carefully targeted investments, a wide mix of private and public sector customers and of course, helped by the dry summer.

Part of the roofing business is being relocated to support its continuing growth.

The new March 2026 earnings forecast, excluding the £1m windfall profit, shows 12.7% growth in revenue to £88m, a steady gross margin of 23.5%, with profit before tax of £3.63m and an EPS of 19.8p.

Further growth is anticipated in these key financials and the interims to September are due later this month.”

Hybridan’s Concluding Comment:

“As the Company successfully invests in upvaluing its services and has funds for expansion, the prospective P/E of 5.5x for March 2026 seems low, particularly compared to the Construction Services sector average P/E of 13.6x.”

My View

I do feel that the shares of this £16m-capitalised group offer very appealing upside.

With the shares now at 117p, is it possible that they are on the cusp of a strong ascent to trade in the 130p to 150p range?

I now set a new Target Price of 140p.