Final Results

Northern Bear Plc
14 June 2007

14 June 2007

              Northern Bear plc ('Northern Bear' or 'the Company')

             Preliminary Results for the period ended 31 March 2007

Northern Bear plc announces preliminary results for the period to 31 March 2007.

The group reports a turnover of £4.75 million and an adjusted* operating profit
of £440,000.

Financial highlights

   •Group Turnover of £4.75 million

   •Loss before tax of £65,000

   •Adjusted* operating profit of £440,000

   •Loss per share of 3.9p

* Adjusted operating profit is arrived at after adding back goodwill
amortisation, depreciation, share based payments and pre-flotation expenses.

Jon Pither, Chairman of Northern Bear, commented:

'We are committed to progressively increasing earnings per share by selective
acquisition and organic development. Growth for growth's sake is not our
objective. It is encouraging that the gathering scale and momentum of Northern
Bear is attracting more potential acquisitions of suitable size and performance.
We expect the period ahead to be extremely busy. The current year has got off to
a very satisfactory start.'

Enquiries please contact:

Northern Bear Plc
Graham Forrest, Chief Executive
0191 371 2934

Strand Partners Limited
James Harris / Braden Saunders
020 7409 3494


Chairman's Statement

I am delighted to present the first set of results for the group following our
successful flotation on AIM in December 2006.

Results for the period to 31 March 2007 show turnover of £4,751,000 and
operating profit of £105,000 after goodwill amortisation of £148,000.

The Model

The business model of bringing mature, cash generative, profitable North East
based building services businesses into a group has proved successful.

Our existing businesses continue to trade in line with expectations and our
acquisition strategy is proving to be highly effective.

The Board

We continue to strengthen our board, particularly at the executive level.
Joining me as Chairman and Graham Forrest, as Chief Executive Officer, are Keith
Soulsby and Steven Gray who were appointed as Operations Directors on 19 April
2007. Both Steve and Keith each have over 20 years experience of owning and
operating building services businesses in the North East prior to their
acquisition by Northern Bear and we are delighted that they accepted our offer
to join the board.

Following the acquisition of Chirmarn on 11 May 2007, David Jay, the previous
Managing Director and majority shareholder of Chirmarn, joined the board as our
first full-time Finance Director. David is a Chartered Accountant and replaces
Steve Roberts, our interim Finance Director, who continues as a Non-Executive
Director.

We were all very sorry when Roy Stanley reluctantly stepped down as a
Non-Executive Director in May 2007 due to well known business commitments. Roy
has been a great source of guidance during our formative months and will be
greatly missed.

Howard Gold joined as a Non-Executive Director in January 2007 and brings with
him both North East business experience and an invaluable source of legal
knowledge, essential for a group of our type.

Employees

I would like to express the thanks of the board to all employees, without whose
loyalty and commitment, success would be impossible to maintain. A particular
mention needs to be made of the directors of each of our acquired subsidiaries,
all of whom have embraced the ethos of Northern Bear and helped bond the
businesses into a cohesive group.


Chairman's Statement (continued)

Future

We are committed to progressively increasing earnings per share by selective
acquisition and organic development. Growth for growth's sake is not our
objective.

It is encouraging that the gathering scale and momentum of Northern Bear is
attracting more potential acquisitions of suitable size and performance. We
expect the period ahead to be extremely busy.

The current year has got off to a very satisfactory start.

JP Pither
Chairman
13 June 2007


Consolidated profit and loss account

For the period from incorporation to 31 March 2007

                                                        Note          2007
                                                                £000        £000
Group turnover
Continuing operations                                              -
Acquisitions                                                   4,751
                                                                             ---
                                                                           4,751
Cost of sales                                                             (3,459)
                                                                             ---
Gross profit                                                               1,292
Other operating income                                                       9
Administrative expenses                                                   (1,196)
                                                                             ---
Group operating profit
Continuing operations                                           (196)
Acquisitions                                                     301
                                                                             ---
                                                                             105
                                                                             ---
Analysed as:
Group operating profit before depreciation,                      440
amortisation,
share based payments and pre-flotation expenses
Pre-flotation expenses                                          (110)
Depreciation                                                     (49)
Amortisation                                                    (148)
Share based payments                                             (28)
                                                                             ---
Group operating profit                                           105
                                                                    

Interest receivable                                                           14
Interest payable and similar charges - group                                (184)
                                                                             ---
Loss on ordinary activities before taxation                                  (65)
Tax on loss on ordinary activities                                           (65)
                                                                             ---
Loss for the financial period                                               (130)
                                                                             ===

Basic loss per share                                     3                 (3.9p)

Diluted loss per share                                   3                 (3.9p)


Consolidated balance sheet

At 31 March 2007

                                                                      2007
                                                               £000         £000
Fixed assets
Intangible assets - goodwill                                 12,266
Tangible assets                                               1,718
Investments                                                      11
                                                                   
                                                                          13,995
Current assets
Stocks                                                          197
Debtors                                                       4,175
Cash at bank and in hand                                        494
                                                  
                                                              4,866
Creditors: amounts falling due within one year               (6,201)
                                                 
Net current liabilities                                                   (1,335)
                                                                             ---
Total assets less current liabilities                                     12,660

Creditors: amounts falling due after more than                            (3,140)
one year

Provisions for liabilities                                                   (52)
                                                                             ---
Net assets                                                                 9,468
                                                                             ===
Capital and reserves
Called up share capital                                                      120
Share premium account                                                      2,170
Merger reserve                                                             7,280
Profit and loss account                                                     (102)
                                                                             ---
Shareholders' funds                                                        9,468
                                                                             ===


Consolidated cash flow statement

For the period from incorporation to 31 March 2007

                                     Note                            2007
                                                            £000            £000
 
Cash flow from operating activities   5                                      185

Returns on investments and servicing
of finance
Interest received                                             14
Interest paid                                               (125)
Interest element of finance leases                            (6)
                                                                             ---
                                                                            (117)

Taxation                                                                       -

Capital expenditure
Purchase of tangible fixed assets                            (31)
Sale of tangible fixed assets                                  2
                                                                             ---
                                                                             (29)

Acquisitions
Purchase of subsidiary undertakings                       (1,778)
                                                                             ---
Net cash acquired with subsidiaries                        1,683
                                                                             ---
                                                                             ---
                                                                             (95)
                                           
                                                                             ---
Cash outflow before financing                                                (56)

Financing
Issue of ordinary share capital                            1,506
Issue of preference share capital                             50
Redemption of preference share                               (50)
capital
Debt due within one year:
New secured loan repayable in 2010                           456
New secured loan repayable in 2016                            66
Debt due after more than one year:
New secured loan repayable in 2010                         1,254
New secured loan repayable in 2016                           574
Repayment of secured loans                                  (130)
Repayment of invoice discounting                            (236)
facility
Repayment of term loans acquired                          (3,978)
with subsidiary
Capital element of finance lease                             (58)
rental payments
                                                                             ---
                                                                            (546)
                                                                             ---
Decrease in cash in the period                                              (602)
                                                                             ===



Reconciliation of movements in shareholders' funds

For the period from incorporation to 31 March 2007

                                                                            2007
                                                                            £000

Loss for the financial period                                               (130)
Charge in relation to share based payments                                    28
New share capital subscribed (net of issue costs)                          9,570
                                                                             ---
Net addition to shareholders' funds                                        9,468
Opening shareholders' funds                                                  -
                                                                             ---
Closing shareholders' funds                                                9,468
                                                                             ===


Notes to the Preliminary Announcement

For the period from incorporation to 31 March 2007


1.                  Basis of preparation

The financial information set out herein does not constitute the Group's
statutory accounts for the period from incorporation to 31 March 2007 but is
derived from those accounts. Statutory accounts for 2007 will be delivered to
the registrar of companies in due course. The auditors have reported on those
accounts; their report was (i) unqualified, (ii) did not include a reference to
any matters to which the auditors drew attention by way of emphasis without
qualifying their report and (iii) did not contain a statement under section 237
(2) or (3) of the Companies Act 1985.

2.                  Dividends

The Directors do not recommend the payment of a dividend for the period ended 31
March 2007.

3.                  Loss per share

The basic loss per share is calculated by dividing the loss for the period of
£130,000 by the weighted average number of shares, 3,374,891, in issue during
the period.

The diluted loss per share is calculated by dividing the loss for the period of
£130,000 by the weighted average number of shares adjusted to allow for the
issue of shares on the assumed conversion of dilutive options. As the impact of
the dilutive options would be to reduce the loss per share, they are not treated
as dilutive. The diluted loss per share is therefore unchanged from the basic
loss per share.

4.                  Acquisitions

On 19 December 2006 the Company acquired 100% of the issued share capital of The
Floor Joist Company (Northern) Limited along with 100% of the issued share
capital of the groups headed by Ron Gone Limited, Dudley Wilson Limited, Kelmax
Limited and Maximuse Limited.

On 2 February 2007 the Company acquired 100% of the issued share capital of MGM
Limited.

The acquisitions have been accounted for using the acquisition method of
accounting. The book and fair values of the acquisitions were:

4. Acquisitions (continued)

                                           Ron Gone,           MGM         Total
                                      Dudley Wilson,       Limited
                                             Kelmax,
                                        Maximuse and
                                         Floor Joist
                                              £000          £000            £000

Tangible assets                              1,408           208           1,616
Investments                                     11             -              11
Current assets                               3,652         2,155           5,807
Creditors                                   (8,488)       (1,196)         (9,684)
Provisions                                     (35)          (17)            (52)
                                                                             ---
Total (liabilities) / assets                (3,452)        1,150          (2,302)

Goodwill                                    10,815         1,599          12,414
                                                                             ---
Purchase consideration                       7,363         2,749          10,112
                                                                             ===

5.                  Net cash outflow from operating activities

                                                                            2007
                                                                            £000

Group operating profit                                                       105
Depreciation and amortisation                                                197
Loss on sale of fixed assets                                                   5
Increase in stocks                                                           (44)
Increase in debtors                                                         (287)
Increase in creditors                                                        181
Charge in relation to share based payments                                    28
                                                                             ---
Net cash inflow from operating activities                                    185
                                                                             ===

6.                  Annual Report


The Annual Report will be posted to shareholders in due course and copies will
be available from the Company's registered office at Station House, Station Road, 
Chester le Street, County Durham, DH3 3DU.






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