In a trading statement to shareholders this morning North Midland Construction said that it was having to take another 拢3.1m hit on the contracts but it still expected to report a profit for 2015.
There is still 鈥渙ne problematical legacy contract鈥� to be sorted out.
NMC is no stranger to profits warnings. It lost 拢6m before tax in 2013 and 拢3m in 2014. However, ror the first half of 2015 it made a pre-tax profit of 拢136,000 on 拢107m of revenue.
In its statement today the board said: 鈥淭he resolution of certain previously referred to legacy contracts across the group has now been concluded and the settlement figures expected have not been achieved, resulting in additional total losses of 拢3.1 million.聽 This leaves only one problematical legacy contract to conclude.
鈥淒espite these negative settlements, due to strong underlying trading, management still expects an unadjusted profit for the full year, albeit significantly below previous management expectations.
鈥淭he order book for completion this year currently stands at 拢195m and the board is confident about the outlook for the year.鈥�
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