- Industrial services and rental company Northbridge said a record level of sales orders would help mitigate in rental revenue caused by the Covid-19 crisis.

The company said its trading in the first quarter was as expected, albeit with some weakness towards the end of the period.

Northbridge said it had largely been able to maintain factory production under appropriate social distancing practices.

'We have a record level of sales orders for this year and this has been our top priority, as the equipment, (mostly used to test emergency backup power systems), is pre ordered, and frequently paid in full before leaving the factory,' it said.

'This will underpin the group's cash planning and will help mitigate any decline in rental revenue.'

'Additional new orders have also been received during the lockdown period, and the factory will be running at near capacity for the remainder of the year.'

'Maintaining production enables the group to better manage any liquidity issues during the expected Covid related downturn, as we are able to receive cash deposits, together with trade and invoice financing, prior to the goods being despatched to the customer.'

Northbridge said senior staff including board members had taken a 20% pay cut for three months beginning 1 April, while a small number of staff had been furloughed in the UK.

'There is no doubt that trading will be adversely affected for some time due to the economic fallout of the pandemic,' the company said.

'However, the benefit of the group's strong positive cash flows, proactive cost control and experienced management team have been well evidenced in past downturns and we expect this to continue to be the case.'

At 1:21pm: [LON:NBI] Northbridge Industrial Services PLC share price was +5.5p at 78p

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