NMCN.L Regulatory News (NMCN)

5 Sep 2007 07:00

North Midland Construction PLC05 September 2007 NORTH MIDLAND CONSTRUCTION PLC 2007 INTERIM RESULTS 5 September 2007 North Midland Construction PLC ("the Company") the UK provider of civilengineering, building, mechanical and electrical services to public and privateorganisations, announces interim results for the six months ended 30 June 2007. Highlights from the results and the Chairman's Statement:- Six Months Six Months Ended Ended 30 June 2007 30 June 2006 £'000 £'000 Revenue 107259 86526 Profit before Tax 1978 2415 Net Profit after Tax 1385 1691 Earnings per Share 11.74p 15.23p Proposed Dividends 2.5p 2.5p • Record half year in terms of Revenue. • Profitability reduced due to losses on two contracts. • North Midland Building Limited and Nomenca Limited had a particularly strong performance in the period. • Order book at record levels. • Full year may fall below expectations. • Interim Dividend of 2.5p (2006: 2.5p). For further information:- Robert Moyle, Chairman - 01623 518812North Midland Construction PLC INTERIM REPORT for the half year to 30 June 2007 CHAIRMAN'S STATEMENT Further organic growth has been delivered during the first half of the year,with turnover advancing to £107.2 million, an increase of 23.9% over thecomparable period last year. With the current order book at record levels, thismomentum will be maintained in the second half of the year. Profit before taxation has reduced by 18% compared with last year, due to twoloss making contracts, one of which was completed in August 2007; the other willrun to the end of the year. The circumstances relating to these losses areisolated and have no bearing on the rest of the business. The losses recognisedin the first half represent the anticipated full cost to completion based oncurrent contract estimates. The performance of North Midland Building Limited and Nomenca Limited (the twosubsidiary companies) was particularly strong in the first half and a credibleperformance was delivered by the Highways Division with a result comparable withthe previous year. The problem contracts referred to above relate in one case tothe Civil Engineering division and in the other to the Utilities division.Consequently, profitability in the Civil Engineering division was significantlydown on the previous year and the Utilities division delivered a loss makingperformance. Operating cash flow in the first half showed a substantial outflow. Thismovement is in line with expectations given work in progress in the first halfand increased activity levels as compared with last year, combined withincreased capital expenditure on the Head Office extensions and constructionplant for the Minworth contract for Severn Trent Water. The order book is full and gives good visibility for the remainder of the yearand into next year, giving the Board confidence in meeting managementexpectations for the second half, although the full year results may not meetmarket expectations. Due to the current rate of expansion of the Group, which necessitates increasedcapital expenditure, combined with a reduced first half year result, your Boardrecommends a maintained interim dividend of 2.5p (2006 : 2.5p) per share, whichwill be paid on 28 September 2007 to the shareholders on the register at 14September 2007. R MoyleChairmanNorth Midland Construction PLC INCOME STATEMENT The unaudited Group results for the half year ended 30 June 2007 are shown belowtogether with the unaudited Group results for the half year ended 30 June 2006and the audited Group results for the year ended 31 December 2006. Six Months to 30 June Year Ended ----------------------- ------------ 2007 2006 31 Dec 2006 ------ --- ------ ------------- £'000 £'000 £'000Revenue 107259 86526 175543 -------- -------- ---------Operating Profit 2035 2465 5591Finance Costs (57) (50) (94) -------- -------- ---------Profit before Tax 1978 2415 5497Tax (593) (724) (1716) -------- -------- ---------Group Profit after Taxation 1385 1691 3781Minority Interest (234) (198) (510) -------- -------- ---------Profit attributable to Shareholders 1151 1493 3271Dividend paid (588) (490) (735) -------- -------- --------- 563 1003 2536 -------- -------- ---------Dividend per share 6.00p 5.00p 7.50p -------- -------- ---------Earnings per share 11.74p 15.23p 33.38p -------- -------- --------- In respect of the six months ended 30 June 2007 corporation tax has beenprovided at 30% (2006 - 30%) of the profit without deferment. BALANCE SHEET The unaudited Group Balance Sheet at 30 June 2007 and 30 June 2006 are shownbelow together with the audited Group Balance Sheet at 31 December 2006. 30 June 31 Dec --------- -------- 2007 2006 2006 ------ ------ ------ £'000 £'000 £'000Non-Current Assets Goodwill 106 106 106 Property, Plant and Equipment 9195 7013 8534 ------- --- ------- ---- ------- 9301 7119 8640 ------- --- ------- ---- -------Current Assets Inventories 1296 1158 1046 Construction Contracts 9543 6686 7009 Trade and other Receivables 43643 34257 32845 Cash and Cash Equivalents - 4934 8652 ------- --- ------- ---- ------- 54482 47035 49552 ------- --- ------- ---- ------- Total Assets 63783 54154 58192 ------- --- ------- ---- ------- ------- Equity & Liabilities Equity Attributable to Equity Holders of theParent Share Capital 980 980 980 Capital Redemption Reserve 20 20 20 Retained Earnings 16585 14489 16022 ------- --- ------- ---- ------- 17585 15489 17022 Minority Interest 992 672 913 ------- --- ------- ---- ------- -------Total Equity 18577 16161 17935 ------- --- ------- ---- ------- Non-current Liabilities Obligation under Finance Leases 952 725 735 - due after one year Provisions 522 438 531 ------- --- ------- ---- ------- ------- 1474 1163 1266 ------- --- ------- ---- -------Current Liabilities Trade & Other Payables 39461 34634 36999 Current Tax Payable 600 1233 970 Obligations under Finance Leases 1015 963 1022 - due within one year Bank Overdrafts 2656 - - ------- ------- ------- 43732 36830 38991 ------- ------- ------- TotalLiabilities 45206 37993 40257 ------- --- ------- ---- ------- Total Equity &Liabilities 63783 54154 58192 ------- --- ------- ---- ------- CASH FLOW STATEMENTS Six Months Ended 30 June Year Ended -------------------------- ------------ 2007 2006 31 Dec 2006 ------ --- ------ ------------- £'000 £'000 £'000Cash flows from OperatingActivitiesOperating Profit 2035 2465 5591Adjustments for:Depreciation of property, plantand equipment 808 679 1430(Gain) on disposal of property,plant and equipment (29) (29) (117)(Decrease)/increase inprovisions (9) 54 77 Operating cash flows beforemovements in -------- -------- --------working capital 2805 3169 6981 (Increase) in inventories (250) (288) (176)(Increase) in constructioncontracts (2534) (225) (548)(Increase)/decrease inreceivables (10798) (951) 461Increase/(decrease) in payables 2462 (711) 1654 -------- -------- --------Cash (used in) generated byoperations (8315) 994 8372 Tax paid (963) (299) (1484)Interest paid (57) (50) (94) -------- -------- --------Net cash (used in) fromoperating activities (9335) 645 6794 -------- -------- -------- Cash flows from investingactivitiesPurchase of property, plant andequipment (655) (1475) (3173)Proceeds on disposal ofproperty, plant and equipment 35 30 133 -------- -------- --------Net cash (used in) investingactivities (620) (1445) (3040) -------- -------- -------- Cash flows from financingactivitiesEquity dividend paid (588) (490) (735)Dividend paid to minorityinterests (155) (130) (200)Repayments of obligations underfinance leases (610) (516) (1037) -------- -------- --------Net cash (used in) financingactivities (1353) (1136) (1972) -------- -------- -------- -------- -------- --------Net (decrease)/increase in cashand cash equivalents (11308) (1936) 1782 -------- -------- --------Cash and cash equivalents at 1January 2007 8652 6870 6870 -------- -------- --------(Bank overdrafts)/cash &equivalents at (2656) 4934 865230 June 2007 -------- -------- -------- NOTES The consolidated financial statements of North Midland Construction PLC are theresponsibility of and have been approved by the Directors and have been preparedin accordance with International Financial Reporting Standards (IAS34) and arepresented in sterling. A copy of this circular will be sent to all shareholders on 5 September 2007 andcopies will be available from the registered office, Nunn Close, The CountyEstate, Huthwaite, Sutton-in-Ashfield, Nottinghamshire, NG17 2HW, for 14 daysfrom today's date. This information is provided by RNS The company news service from the London Stock Exchange