For the six months to 30th June 2017, North Midland Construction (NMC) more than double group pre-tax profit to 拢1.2m (2016 H1: 拢510,000) on revenue up 4.3% to 拢135.1m (2016 H1: 拢129.6m)
The Construction division was affected by delays in secured projects getting started, so revenue declined 3.4% to 拢11.2m and profitability by 68% to 拢78,000 (2016 H1: 拢248,000).听 However, with delayed projects are now under way and the remaining order book to be completed this year currently at 拢23.5m, the full year's targets are expected to be achieved.听 Secured revenues for 2018 are currently 拢15m.
The Power division has suffered from a shortage of orders with revenues down 46% to 拢7.5m (2016 H1: 听拢13.8m), resulting in a loss of 拢151,000 (2016 H1: 拢127,000 profit). A return to profitability is forecast for the second half-year.
Highways increased revenue by 6% to 拢21.3m and profitability by 19% to 拢260,000.听 Secured workload to date for the remainder of the year is 拢16m.
With the telecommunications market buoyant, NMC鈥檚 revenues in this sector increased by 17% to 拢18.0m (2016 H1: 拢15.5m, making a 拢32,000 profit (2016 H1: 拢1.6m loss).听 鈥淭he return to profitability is encouraging, but the turnaround and reorganisation is not yet complete,鈥� said chairman Robert Moyle, adding: 鈥淎 cautious perspective to the year-end out-turn is being adopted.鈥�
The Water sector continues to be a major market for the NMC, with first-half revenues up 12% to 拢77.1m, but with profits down 30% to 拢1.1m due to project start-up costs.听
Chief executive John Homer said: "These results demonstrate the continued strategic advancement made in the business during the trading period. Our focus on enhanced margins and cash generation is beginning to become apparent and is anticipated to continue going forwards.
鈥淭he outlook for our future trading remains positive and provides the opportunity to further improve the earnings from our operations. The board is anticipating enhanced like-for-like revenue growth in the second half of the year, coupled with an enhanced operating margin percentage."
| North Midland Construction |
听听 Six months ended 30 June 2017 |
听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||
| 听 |
Construction |
听 |
Power |
听 | 听 |
Telecoms |
听 |
Water |
听 |
Total |
||
| 听 |
拢'000 |
听 |
拢'000 |
听 |
拢'000 |
听 |
拢'000 |
听 |
拢'000 |
听 |
拢'000 |
|
|
Revenue |
11,201 |
听 |
7,468 |
听 |
21,297 |
听 |
18,039 |
听 |
77,129 |
听 |
135,134 |
|
|
Result before |
699 |
听 |
409 |
听 |
1,234 |
听 |
943 |
听 |
5,811 |
听 |
9,096 |
|
|
Corporate expenses |
(621) |
听 |
(560) |
听 |
(975) |
听 |
(911) |
听 |
(4,704) |
听 |
(7,771) |
|
|
Operating profit/(loss) |
78 |
听 |
(151) |
听 |
259 |
听 |
32 |
听 |
1,107 |
听 |
1,325 |
|
|
Net finance costs |
听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
(105) |
|
|
Profit before tax |
听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
1,220 |
|
|
Tax |
听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
(238)听听听听 |
|
|
Total comprehensive income for the period |
听 | 听 | 听 | 听 | 听 |
982 |
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