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19 May 2014 07:00
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 £44.5 million (Q1 FY13 £45.2 million), but a profit before tax of £234,000 was returned (Q1 FY13 loss before tax £105,000). Secured workload that is expected to be completed within the current financial year is approximately £160 million (Q1 FY13 £140 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 £148,000 (Q1 FY13 £105,000) on a revenue reduced by 4.0% to £9.8 million (Q1 FY13 £10.2 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
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