(Alliance News) - NMCN PLC on Thursday posted a 24% jump in 2019 profit and said it taking a number of steps to cut costs and conserve cash amid the health crisis.
The engineering and construction company has decided to temporarily cut remuneration of its directors by 20% and a 10% reduction for the senior managers. It also has deferred all non-essential expenditure and has implemented a hiring freeze.
Measures taken to reduce cash outflows include the deferral of value added tax payment, utilisation of the UK government's Job Retention Scheme and the decision not to recommend a final dividend for 2019.
"Where it is safe to do so, we continue to work on those projects that are deemed to be in areas of critical national significance to the Covid-19 response. Presently such activities represent up to 70% of the workload we would anticipate in a more normal operating environment. Our services in Building have been disrupted with a temporary cessation of works at the majority of sites," NMCN explained.
For 2019, the company's pretax profit increased 24% to GBP7.4 million from GBP6.0 million a year ago. Revenue jumped 19% to GBP404.7 million from GBP340.5 million.
The revenue increase was attributed to additional turnover in both the Water and Built Environment segments and was in excess of management's expectations for the period.
Total dividend for 2019 amounted to 9.0 pence per share versus 18.0p in 2018.
The Ashfield, England-based company said it is unable to quantify the likely impact of the virus outbreak on 2020 results and has decided against providing a forward looking financial guidance until greater visibility is available.
Shares in NMCN were down 1.7% at 413.00 pence each in London on Thursday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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