For the six months to 30th June 2018 North Midland Construction made a pre-tax profit of 拢2.51m (2017 H1: 拢1.23m) on revenue of 拢160.9m (2017 H1: 拢135.1m).
A 拢1.6m loss in the telecoms division dragged the Built Environment segment of the business into an operating loss of 拢200,000 on revenues down 3.4% to 拢48.8m.
The Construction segment produced an operating profit of 拢1.22m on revenues almost doubled to 拢21.98m, up from 拢11.2m last time.
There was also revenue and margin growth in both Highways and Water.
However North Midland Construction suffered a reverse last month in the Court of Appeal in its long-running contractual dispute with Cyden Homes. 鈥淭he appeal was heard on the 12 July 2018 but unfortunately the outcome was unfavourable for the company,鈥� chairman Robert Moyle said. 鈥淎s a consequence, alternative strategies for making appropriate recovery under this contract which had already been designed in parallel are now being fully implemented. The financial impact of this decision had already been recognised in our 2017 accounts and will not affect current projections.鈥�
The company had 拢18.9m cash in the bank at 30th June 2018, up from 拢7.9m a year before and 拢320m of orders to be completed this year.
Chief executive John Homer said: "These results demonstrate the continued progress made in the business against our strategic objectives. Our focus on margin enhancement (104% ahead of last year) and cash generation (138% ahead of last year) is beginning to show returns and is anticipated to continue going forward.
鈥淲e continue to invest significantly in the development of our people and the evolution of our employer brand. It is our firm belief that our people are the overarching differentiator in the service that we provide and the primary driver for our continued success.
鈥淭he outlook for future trading remains positive and provides the opportunity to maximise earnings from our operations. The board is anticipating further revenue growth coupled with an enhanced margin percentage."
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