North Midland Construction PLC Interim Management Statement (3266H)
May 19 2014 - 2:00AM
UK Regulatory
TIDMNMD
RNS Number : 3266H
North Midland Construction PLC
19 May 2014
North Midland Construction PLC ("the Group")
19 May 2014
Interim Management Statement
North Midland Construction PLC is today issuing its Interim
Management Statement covering the period between 1 January 2014 and
19 May 2014, as required by the UK Listing Authority's Disclosure
and Transparency Rules.
It is gratifying to be able to report a return to profitability
in the first quarter, as the prospects for the construction
industry in general start to improve.
The first quarter started slowly, particularly in the Highways
& Utilities Division, and overall Group revenue for the period
declined by 1.5% to GBP44.5 million (Q1 FY13 GBP45.2 million), but
a profit before tax of GBP234,000 was returned (Q1 FY13 loss before
tax GBP105,000). Secured workload that is expected to be completed
within the current financial year is approximately GBP160 million
(Q1 FY13 GBP140 million). At this stage, this total only includes
firm orders placed under the framework contracts. These orders will
increase, as there is good visibility of the projected level of
annual expenditure on the major frameworks.
Once again, the water business (NMCNomenca) has delivered
strongly, alongwith the E5 Consortium, whose programme will be
largely complete this financial year. The restructured Building
& Civil Engineering division is performing much better, albeit
on lower volumes. Resolution of the two problematic contracts that
caused the loss in the previous financial year remains
outstanding.
The Nomenca subsidiary has made a solid start, delivering an
enhanced profit of GBP148,000 (Q1 FY13 GBP105,000) on a revenue
reduced by 4.0% to GBP9.8 million (Q1 FY13 GBP10.2 million).
The Group bank facilities have been recently renewed and control
of cash is being closely maintained.
The current level of secured orders is strong and there has been
some return to growth in the construction market, most particularly
in the highways sector. The water business of NMCNomenca and
Nomenca continue to benefit from robust expenditure in the
penultimate year of the AMP5 programme.
Notwithstanding the unknown resolution of the two problematic
aforementioned Building & Civil Engineering contracts, the
Board is cautiously optimistic that the improved performance can be
maintained.
The Group's Annual General Meeting is being held on 22 May 2014
at 12.00 noon at the Group's Head Office at Nunn Close, The County
Estate, Huthwaite, Sutton-in-Ashfield, Nottinghamshire NG17
2HW.
Contacts:-
North Midland Construction PLC 01623 515008
Robert Moyle, Chairman
Dan Taylor, Finance Director
N + 1 Singer 0113 3884789
Richard Lindley
This information is provided by RNS
The company news service from the London Stock Exchange
END
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