Highlights

• Northern Bear proposes buying back up to 6.9m shares at 132.5p each through a tender offer worth up to £9.1m.

• Half-year Revenue fell 21% to £38.9m, while operating profit dropped to £2.1m from £4.1m a year earlier.

• The specialist building services group finished September with net cash of £4.8m after generating £1.1m from operations.

• Management still expects full-year results broadly in line with market expectations, assuming no market deterioration ahead.

Up to £9.1m could soon flow back to shareholders. Northern Bear (LSE:NTBR), the North East-based specialist building services group, has proposed a tender offer to buy up to 6.9m of its own shares at 132.5p each, publishing the plan and a notice of general meeting minutes after interim results for the six months to 30 September 2026. The Capital return arrives in a half when revenue and profit both slipped, placing this AIM stock at the centre of a familiar debate on the UK stock market: returning cash versus holding it.

The tender offer: what shareholders are being offered

Under the proposal, Northern Bear (LSE:NTBR) would acquire up to 6.9m shares at 132.5p per share, a maximum outlay of up to £9.1m. Because the company has issued a notice of general meeting, the tender requires Shareholder approval before it can proceed.

This is not the group's first tender. In October 2023, it proposed returning up to £3.1m at 62p per share. By calculation, the new tender price is more than double that earlier level.

Interim results show a softer half

Revenue for the half fell about 21% to £38.9m, compared with £49.4m a year earlier. Gross Profit was £9.2m, with gross Margin easing to 23.6% from 24.7%.

Operating profit came in at £2.1m against £4.1m, and Basic Earnings Per Share dropped to 11.2p from 21.9p. The prior-year period was flattered by a £1.3m non-recurring profit; adjusting for it, the comparable figures were operating profit of £2.8m and earnings per share of 14.6p. Adjusted and reported numbers for the latest half were identical.

Cash position and capital return context

Cash generated from operations was £1.1m, down from £3.1m. Net cash at period end stood at £4.8m, against £6.2m at 31 March 2026.

The tender follows a full year to March 2026 in which revenue rose 10.2% to £86.1m, a £1.5m term Loan was repaid in full, and the board proposed a final Dividend of 2.5p plus a Special Dividend of 5.0p. In July, the board described its priorities as investing for growth, selective earnings-accretive acquisitions and a progressive dividend policy.

Risks and open questions

The maximum tender value exceeds period-end net cash, so how the offer will be funded is a key detail for shareholders to check in the circular. In July, management flagged rising Supply chain costs, private-sector delays and cancellations, and slower decision-making amid political change. The group also cautioned that results are subject to monthly variability.

Where Northern Bear goes from here

Northern Bear (LSE:NTBR) expects the year to 31 March 2027 to be broadly in line with market expectations, assuming no deterioration in market conditions. The general meeting vote is the next marker, and the circular should set out the timetable and mechanics for shareholders who wish to tender. Second-half trading will then show whether the softer first-half revenue run rate persists.