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2 Apr 2015 07:00
North Midland Construction plc (the "Company")
Trading Update
North Midland Construction PLC provides a further trading update for the year to 31st December 2014.
An ongoing review of the few remaining outstanding legacy contracts, which were secured at the height of the recession, is expected to result in further provisions being required.
These expected further provisions reflect a prudent approach with commercial negotiations and contractual claims ongoing in respect of these outstanding legacy contracts. Management now expects a materially larger loss before tax for the full year as a result of these increased accounting provisions.
However, the underlying profitability and revenue of the business for the year is likely to exceed management's expectations.
At year end net cash was £1.7m and cash balances were £5.3m. The business has sufficient funds to support its growth going forward.
The current level of secured revenue and underlying performance is very encouraging and whilst the resolution of the outstanding legacy contracts continues to be challenging, progress is being made.
The full year audited figures will be released to the market on Monday 20 April 2015.
Contacts:-
North Midland Construction PLC
Robert Moyle, Chairman 01623 515008
Dan Taylor, Finance Director
N+1 Singer
James White 0113 388 4785
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