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19 Nov 2010 07:00
North Midland Construction PLC ("the Group")
19 November 2010
Interim Management Statement
The Group is today issuing its Interim Management Statement covering the period between 1 July 2010 to 30 September 2010, as required by the UK Listing Authority's Disclosure and Transparency Rules.
The current economic climate remains challenging with a reduced level of tendering opportunities and extremely competitive margins. The effect of the recent public sector spending review has still to be determined however profitability for the Group to the end of the third quarter is in excess of the comparable period last year, on increased revenues.
North Midland Building Limited is experiencing problems on one particular contract and is expected to deliver a loss of circa £250k for the year.
Nomenca Limited's final result will be affected by the slow commencement of the AMP5 programme by the water companies. Both forecasted revenue and profit fall below the previous year.
The Highways division has a satisfactory workload and both revenue and profit will exceed the previous year.
The Civil Engineering division needs to secure more workload for the following year, although two contracts of a total value of £3.6million have recently been received in the power sector. Revenue will be reduced, but profitability increased on the previous year.
Revenues continue to increase in the Utilities division on the back of increased demand for broadband. The contract with Carillion/Telent for BT work in the East Midlands area has recently been renewed. A profit in excess of the previous year will be delivered.
Cash flow has remained constant and the Group continues to operate well within its facilities.
The joint venture contract at Minworth has now finished and both the Civil Engineering division and Nomenca will be the beneficiaries of increased bonus payments for delivering the project under the client's budget.
We continue to rigorously control costs and maintain a flexible marketing approach to changing market conditions.
We are still waiting to hear the result of the OFT fine appeal.
The current order book for 2011 stands at £89 million and the Board is confident that the management's forecasts for the year will be achieved.
Contacts:-
North Midland Construction PLC 01623 515008
Robert Moyle, Chairman
Mike Garratt, Finance Director
Brewin Dolphin 0845 213 4730
Matt Davis
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