North Midland launches development arm

Grant Prior 2 years ago
Share

North Midland Construction has launched a development arm as cash-flow continues to improve at the contractor.

NM Investments has been set up to “utilise some of the free-flow cash” and “generate both a development profit, at a margin currently in excess of existing contracting margins, and also provide revenue and a return for the Construction Division.”

Work has started on site in Notingham on the first town-house development with another project in the pipeline at Sutton-in-Ashfield.

North Midland said: “Both of these schemes are a tentative ‘toe in the water’ on a moderate scale with low risk and should provide enhanced returns.”

The development plans will be confirmed at the firm’s AGM today where revenue of £74.5m for the first quarter will be revealed generating £640,000 of profit.

The Telecoms division was the main drag on margins which reduced to “an unsatisfactory return” of 0.86%.

Chairman Robert Moyle, talking about the Telecoms division said: “There is an urgent need to return this business to profitability and a thorough review of all operations and performance is currently being undertaken.”

The water sector was the main driver of growth returning a £731,000 profit on revenues of £49.8m.

Moyle said: “The construction market is currently quite buoyant and this year, on the back of its strong customer relationships and its ability to deliver larger and more complex projects, the group will deliver further growth in both revenue and profit. 

“Therefore, a very selective and thorough approach to contract selection and risk management is being taken.  All the concentration going forward will be on managing this growth and maximising the return upon it.”

North Midland currently employs nearly 1,700 staff but is struggling to fill vacancies with around 100 jobs permanently available.

John Homer Chief Executive said: “It is pleasing to report that we have had a strong start to this year.

“Our strategy of focusing on getting the basic principles of risk management right and delivering exceptional customer service is serving us well.

“The losses in the telecommunications sub segment are disappointing and full management attention is being focussed to rectify the situation.

The forward order book and cash generation are positive indications of a successful year. It is expected that these will continue.”

Latest news

Contractors rally to help Clugston staff facing the axe

Trade body calls up firms to offer laid off staff jobs in run up to Christmas
13 hours ago

Clugston files for administration

Hundreds of jobs at risk as financial crisis hits regional contractor
1 day ago

London Resort reveals next generation theme park designs

Developer hopes to start construction in 2021
17 hours ago

Historic Liverpool building refurb now on third fit-out firm

Overbury brought in to replace Caddick who took job from Styles & Wood
18 hours ago

Green light for Birmingham’s tallest resi tower

Construction go-ahead for 51-storey skyscraper
18 hours ago

McLaren and Sisk hire regional directors from Kier

Andy Langley and Bruce Clarke take up key roles
18 hours ago

Oxford Science Park expansion approved

Major office and laboratory complex is set to be built in Oxford next autumn
18 hours ago

Giant property fund suspends dealing

Outflow of cash prompts move as investors flee sector
2 days ago

Mace takes jump factory system to next level

Contractor launches Mace Tech business to transform high rise flats building
2 days ago

Winvic to build £57m Cardiff PRS tower

Winner confirmed for build to rent scheme as Grainger agrees funding deal
2 days ago

Creagh Concrete targets £200m turnover

Expanding concrete specialist looks to grow workforce to 1,000
2 days ago

Council fined £1.4m after falling bollard injures girl

Court hears how failings at council's highways deprtment left a six-year old with brain injuries
2 days ago

Consultation opens on ring-fencing retentions in Scotland

Specialist contractors call for action to protect retention payments
2 days ago

Vital Energi lands £7m M&E package from Berkeley Homes

Latest win for specialist at Royal Arsenal Riverside development
2 days ago

Willmott Dixon wins £39m university refurb job

London South Bank University awards contract for new learning hub
2 days ago

Edinburgh private rental scheme approved

Moda Living gets all clear on 139-flat Springside scheme
2 days ago

Plan for £100m landmark Portsmouth University project

13-storey academic building will rise to
3 days ago

Go-ahead for £500m Thames riverside fire station scheme

Developer U+I to start construction on major mixed use site in 2021
3 days ago

Just days left for deal to keep Midlands hospital restart on track

Government red tape over funding improvement targets holds up deal
3 days ago

Amey utilities and waste business up for sale

For sale sign hoisted over loss-making divisions employing around 6,000 staff
3 days ago

Skanska chalks up £23m Bristol secondary school job

Contractor has strong track record of school projects in the city
3 days ago

Nod for 350 flats plan at old Leicester City ground

Mix of rental and for sale flats to be built at former Foxes homes
3 days ago

Buyers report construction still in “contraction hole”

Speed of decline falls in November but political uncertainty casts shadow over industry
4 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
2 years ago

Heavy rain hits another major civils job

Galliford Try's £120m Lincoln Eastern Bypass turns into a quagmire
4 days ago

Sky plans major film studio complex at Elstree

Legal & General will develop and part-finance the 32-acre site in Hertfordshire
4 days ago

Chancellor pledges review of freelance tax changes

Review of planned IR35 changes could spare construction widespread disruption
4 days ago

ISG on board for £89m Cardiff bus interchange

Mixed use scheme is contractor's biggest win of the year
4 days ago

Atkins online plea to SMEs to help fix potholes

Consultant aims to reach more small firms by bypassing traditional procurement route
4 days ago

Plan for new 8,000-seat Edinburgh indoor arena

Arena scheme to include conference, retail, leisure and hotels
4 days ago

Contractor services