NMCN.L Regulatory News (NMCN)

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018

28 May 2021

NMCN PLC

("nmcn" or "the Company" or "the Group")

Financing and Trading Update

As previously notified the Company has been working since Q4 2020 to secure a financing package more appropriate to the size and nature of the Group's businesses and risk profile. This has been a core focus of the Board in light of a number of contractual issues exacerbated by the COVID-19 pandemic which have resulted in the Group now expecting to report overall underlying losses before tax of £24m, approximately £6m of which are attributed to 2019. These issues have presented significant challenges requiring the Board to actively manage the Group's working capital whilst work on the refinancing has been undertaken. The Board would like to place on record its appreciation of the ongoing commitment and cooperation of our employees, supply chain and customers.

The Company is pleased to report that discussions are progressing well with a number of interested parties. The Board has now received heads of terms and is working towards concluding an agreement during June. If the Group is unable to secure commitment for the requisite level of funding to satisfy its ongoing working capital requirements, then the Company will need to consider all appropriate options. The Company's overdraft facility with Lloyds Bank plc has been extended into June to accommodate the continuation of these discussions.

Activity levels across the business are reasonable however we are dealing with some performance issues in our Building business unit and are still experiencing a number of challenges on two loss making contracts in Water which will impact current year performance. Our new CEO, Lee Marks, is conducting a comprehensive review. As stated in the announcement of 16 April 2021, it is anticipated that the Preliminary Results for the period ended 31 December 2020 will be published by the end of June.

Lee Marks, Chief Executive, commented:

"I was delighted to join the Company as Chief Executive earlier this month, as I see a business with a significant depth of expertise focusing on attractive and appropriate addressable markets. The combination of internal issues and the COVID-19 pandemic has undoubtedly created very challenging circumstances for nmcn over the course of the last 18 months and I would like to thank my colleagues for their efforts. There is certainly much to do but with progress toward an appropriate financing structure being made I look forward to the challenge."

A further announcement will be made in due course as appropriate.

Enquiries:

nmcn Plc - +44 (0) 1623 515 008

Ian Elliott, Chairman

Lee Marks, Chief Executive

Alan Foster, Chief Financial Officer

Shore Capital - +44 (0) 20 7408 4090

Edward Mansfield

Dan Bush

John More

About nmcn

nmcn Plc (TIDM: NMCN) is a leading engineering and construction company in the UK. Its talented 1,700-strong team offers multi-sector engineering and construction skills, technical innovation, design, and specialist fabrication.

The Company delivers major built environment and water industry projects across the UK - from buildings and highways to large-scale water networks and treatment plants. With its history dating back to 1946, nmcn now has 12 UK offices and three off-site manufacturing facilities.

LEI Number: 213800ANYQVA5OS51A68

www.nmcn.com

IMPORTANT INFORMATION

The issue of this announcement shall not, for the avoidance of doubt, in any circumstances, create any implication that nmcn shall be required to provide any further updates on the status of any matters contemplated in this announcement (save as may be required by law or regulation).