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16 Oct 2014 07:00
North Midland Construction Plc (the "Group")
TRADING UPDATE
North Midland Construction PLC provides a trading update for the year to 31 December 2014.
The resolution of certain legacy contracts in the Building & Civil Engineering division, as referred to in the half year statement issued on 22 August 2014, has now been concluded and the settlement figures expected have not been achieved, resulting in additional total losses of £700K. This leaves a total of 3 problematical legacy contracts to conclude and a further prudent review has led to additional provisions of £2.0M being made.
As a result of these negative settlements and further provisions, management now expects an unadjusted loss for the full year.
However, the underlying profitability and revenues of the business for the current year continue to improve and are ahead of management's previous expectations. The aforementioned settlements have also resulted in a cash inflow of circa £1.5M with a further £900k expected before the year end and therefore the year end net cash position will be in line with expectations.
Whilst the resolution of the legacy contracts continues to be problematical, the number outstanding has diminished and both the underlying performance of the business and outlook are encouraging.
Contacts:-
North Midland Construction PLC 01623 515 008
Robert Moyle, Chairman
Dan Taylor, Finance Director
N + 1 Singer 0113 388 4789
Richard Lindley
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