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17 May 2013 09:42
North Midland Construction PLC ("the Group")
17 May 2013
Interim Management Statement
North Midland Construction PLC is today issuing its Interim Management Statement covering the period between 1 January 2013 and 17 May 2013, as required by the UK Listing Authority's Disclosure and Transparency Rules.
The UK construction sector continued to contract in the first quarter of the year and this, coupled with losses on two major contracts within the Building & Civil Engineering division and poor weather, severely affected the first quarter performance.
Although overall Group revenue for the first quarter increased by 3% to £45.2 million (Q1 FY12 £43.9 million) the Company made a loss before tax of £105,000 (Q1 FY12 PBT £0.35 million). Secured workload that is expected to be completed within the current financial year is approximately £140 million (Q1 Y12 £134 million).
A strong performance was delivered by the water business (NMCNomenca), but this was negated by reduced volumes in the recently integrated Highways & Utilities division. The Building & Civil Engineering division experienced delays and consequent cost overruns on two major projects, one of which is now complete, and the other should finish in the middle of this financial year. Both contracts are subject to contractual claims, which are still to be resolved. The construction market remains extremely difficult and further restructuring of the division is underway.
The Nomenca subsidiary has made a solid start delivering a profit of £105,000 on a revenue of £10.2 million. NMCNomenca will be reporting as a stand alone division in this financial year, whereas previously its results have been incorporated into those of Nomenca and the Building & Civil Engineering division.
The cash position has been maintained and adequate bank facilities have been recently renewed.
Notwithstanding the unknown outcome of the two major Building & Civil Engineering contracts mentioned above, trading for the full year remains in line with management's expectations.
The Group's Annual General Meeting is being held on 23 May 2013 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
Mike Garratt, Finance Director
N + 1 Singer 0113 3884789
Richard Lindley
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