Exec Chairman Peter Harris certainly doesn’t hang about. Since taking over the helm in Mar’21, he has crafted a phenomenal turnaround at Northbridge Industrial (NBI ).
Not only completing a strategic review & major refinancing, but also initiating a 50% factory expansion at Crestchic Loadbanks with significantly improved prospects.
Better still, NBI issued an ‘in line’ update today, saying “trading at Crestchic Loadbanks remains strong, whilst the gas E&P division Tasman continues its recovery from the pandemic induced slowdown”.
Specifically wrt the Tasman's 'piece-meal' disposal, NBI is also at an “advanced stage of exiting Malaysia & Singapore, in exclusive talks to sell the Australia & New Zealand arm and in early discussions regarding the Middle East.” With the Board hoping to provide more detail in February.
In terms of the numbers, the estimated exceptional Tasman cost would be circa £6.0m-£7.0m; consistent with previous guidance.
So what does this all mean? Well it probably helps explain why astute smallcap investor Christopher Mills has recently been topping up his Harwood Capital position at 170p.
Like myself I suspect he sees considerable long term hidden value in Crestchic.
Indeed although my forecasts (excl Tasman) remain unchanged with a conservative 200p/share valuation – I nonetheless think there’s significance further upside over a 3-4 year view.
Watch this space.