LONDON (ShareCast) - (ShareCast News) - Shares in Northern Bear slumped on Monday after the building services company announced it had sold its loss-making subsidiary Chirmarn for £50,000 and said that full year results would be "at least in line" with last year.
The AIM-listed company said that they sold the asbestos removal subsidiary following a detailed review after it performed "well" during the succession but was trading at a loss and needed funding to continue operating.

It said that while it gave "all possible resources and support" to Chairman the situation persisted and it could see that there would be "no certainty that there will be any improvement" in the "short to medium term".

Northern Bear also said there was limited potential for long term market growth as the subsidiary operated in a different sector from the company.

The sale was considered to be in the "best long term interests" of shareholders and for Chirmarn, as the buyer is said to have knowledge of the asbestos industry.

Separately, Northern Bear said that following a relatively mild winter and a strong performance in the roofing division, results for the year ended 31 March are to be "at least in line with the prior year".

The company has also signed a new £3.5m revolving credit facility with Yorkshire Bank, which will expire in May 2020 with a £1m overdraft at a reduced interest rate level.

Shares in Northern Bear were down 10.81% to 49.50p at 0906 BST.

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