Mountfield Building Group (MBG) has seen 鈥渁 significant improvement in its trading performance鈥� since withdrawing from subcontracting and only taking on projects in direct contract with the client.
Mountfield after a review determined that the high-risk fixed-price nature of subcontracts was impacting margins.
In a trading update today, Mountfield said that this change, coupled with a progressive reduction in overheads resulting from the change in strategy, 鈥渋s already producing measurable benefits鈥�. The company has secured a further 拢2.1m of direct works for completion in 2015 and is negotiating several other contracts.
Group chief executive Andy Collins said: 鈥淭he group board is excited to see the way in which the fortunes of MBG are being turned around. The re-focussing of the company towards direct works and cutting its costs to make it more competitive is working well in a market where there are significant opportunities of profitable work on offer for competitively run construction businesses that MBG are now able to pursue".
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