RNS Number:3364W
North Midland Construction PLC
23 May 2002

                         NORTH MIDLAND CONSTRUCTION PLC


AGM Statement

At the AGM held today, all of the resolutions were passed and the Chairman made
the following statement:

Trading Update

I am in the happy position of being able to stand here and inform you that the
current year has started well and that the Group is on course to achieve it's
budgets.  For the first quarter, a Group profit of circa £0.5m has been achieved
on a turnover of nearly £17m.

As you are aware, the Group operates in four distinct sectors and it is my
intention to update you on these elements of the Company's business
individually.  The Parent PLC company has achieved a promising result, with a
highly heartening return to profitability in mainstream civil engineering.  The
partnership with Severn Trent is beginning to bear fruit, as volumes start to
increase and the recently opened North West office in Warrington has acquired
£3m of orders already.  Highways continue to be a valuable source of income and
the division has performed particularly well.  We are in partnership, amongst
others, in the Amscott consortium, which has recently been successful in
obtaining the Area 7 maintenance contract from the highways Agency for the next
five years.  A significant increase in civil engineering turnover has been
budgeted for 2002 to partially off-set the downturn in the telecommunications
division, where profitability is being maintained, but not at previous levels,
due to the well-documented problems of the operating companies.  However, on a
positive note, a four year contract for three regions of the UK has been
recently secured with Atkins Telecom and this allied to term contacts with
British Telecom in partnership with Marconi, MTL and Kingston Communications
will provide a solid foundation.

North Midland Building continues its expansion and enhanced targets have been
defined for the current year, both in terms of turnover and profit.  A £12m
workload has already been secured and the management team is optimistic.  New
clients continue to be cultivated and current projects include a £3m prison
extension in Preston and a hotel extension in Chesterfield.

Nomena, the M&E subsidiary, is a cornerstone in the strategy of the provision of
a total capability to clients, particularly in the water industry.  The business
is growing rapidly organically and a further regional office in Bristol has just
been established.  The company is trading at an improved level from the previous
year and orders in hand currently stand at £7m.  An encouraging range of clients
is being established both inside and outside the water industry.

Continued growth is of paramount importance to your Board and ambitious targets
have been designated for this current financial year.  Orders in hand for 2002
stand at currently £45m and those for 2003 at £18.  The share price, currently
77 pence has improved, but still does not reflect net asset value.  Your Board
is doing all it can to remedy this situation although attracting investment in
small PLC's is very difficult.  I am glad, moreover, to be able to report that
the Employee Share Scheme is now functioning and nearly 10% of the workforce has
subscribed, which is heartening.

I should just like to take this opportunity to thank the Board and all the
employees for their continued hard work and loyalty to the shareholders and for
your continued support.



                      This information is provided by RNS
            The company news service from the London Stock Exchange
Nmcn (LSE:NMCN)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Nmcn Charts.
Nmcn (LSE:NMCN)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Nmcn Charts.