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Northern Bear buys heat specialist for £2m

Newcastle based heating specialist D J McGough has been bought for £2 million by expanding holding company Northern Bear.

D J McGough offers plumbing, heating and mechanical services focussed on industrial and commercial customers across the North East.

The company employs a team of 47 and has established strong long term relationships with a wide number of industrial and commercial businesses.

Jon Pither, chairman of Northern Bear, said the D J McGough deal and the purchase of A1 Industrial Trucks strengthened its position: 'A1 Trucks and D J McGough represent the eleventh and twelfth additions to our growing portfolio of successful companies and we expect them to make positive contributions to the Company's financial performance in 2008 and beyond.

“The acquisitions also reflect Northern Bear's policy to continue to develop its business away from the cyclical 'New Build' housing sector, which is expected to contribute less than 15 per cent of Northern Bear's turnover in the current financial year, and diversify its customer portfolio.”

For the 12 months to 31 December 2007, D J McGough generated revenues of £2.74 million and profit before tax of £290,065. As at 31 December 2007, D J McGough had net assets of £0.9 million, including £0.5 million of cash.

Northern Bear expects D J McGough to contribute to its earnings in this financial year.

These latest purchases follow on a series of acquisitions in 2007 worth a total of around £12m including building services specialist Hastie in June, asbestos removal company Chirman Holdings in May and refurbishment specialist MGM in February. .

Mr Pither said: 'Last week the Company announced in a trading statement that we expect turnover and profit before tax for the 12 months to 31 March 2008 to be at the upper end of market expectations.

'Consequently, we look forward to announcing our results in late May 2008 and the Board remains confident of the Company's trading outlook for the coming financial year.'