North Midland on hunt for civils and building work

Grant Prior 12 years ago

North Midland Construction enjoyed a 49% jump in pre-tax profits during the first half of this year powered by an improved performance in its utilities divison.

But the building division continued to struggle for work despite turnover increasing to £11.3m for the period compared to a low of just £1.9m last time.

NMC does most of its work in the civil engineering, utilities and M&E sectors through its specialist subsidiary Nomenca.

Group pre-tax profit to June 30 increased to £2m from £1.3m last time on turnover up to £77.9m from £71.3m.

The company saw staff costs fall during the year from £19.2m to £18.5m.

Chairman Robert Moyle said: ” All divisions were profitable, with an improved performance from the Utilities division on the back of significantly increased volumes from the telecommunications companies, driven by the demand for increased broadband capability.

“The Civil Engineering division benefited from the commencement of the AMP5 programme for the water industry and the resolution of various schemes on the Minworth Project for Severn Trent Water.

“In an extremely competitive environment, the Highways division delivered a similar result to that of the previous year.

“North Midland Building continues to be severely affected by the downturn in demand and a nominal return was delivered, albeit on a revenue increased five fold.

“Tender opportunities are on the increase, but margins remain extremely competitive and further orders are required to deliver the forecasted result for the year.

“Nomenca, the Mechanical & Electrical Engineering subsidiary, has suffered from the slow commencement of the AMP5 programme by the water industry.

“Profitability reduced by 20.3% to £235,000 on revenue reduced by 14.3% at £18m.  The lead-in period for their works are much longer than for the Civil Engineering division and it is unlikely that the forecast for both revenue and profit will be achieved this year.  However, the prospects for the ensuing years are very promising.

“Secured Group revenue for this financial year currently stands at £170 million, compared with market expectations of £184 million.

“There is a need to secure further orders, most particularly in the non-water elements of the Civil Engineering division and the Building division.

“The market place remains extremely competitive, but the Group is well placed with its wide range of capabilities across the sector to deliver.”

Latest news

Materials giant CRH looks to sell contractor Farrans

More than 550 staff set to get new owner
7 hours ago

Ilke Homes pulls off £100m record-breaking fund raise

Largest-ever capital raise by a UK modular house builder to fund expansion
11 hours ago

Construction buyers fear for year ahead

"Construction companies now have a tightrope to walk in terms of being ready for recovery and cautious around investment"
10 hours ago

Gove calls for competition probe into house building

Levelling Up and Regeneration Bill 'strengthened' with new measures
13 hours ago

Schools get £500m for energy upgrades this winter

Extra cash found for better heating controls, insulation and energy efficient lighting
12 hours ago

1,000-home North London scheme approved

Developer Hill will start work in the Spring on South Tottenham site
13 hours ago

Bid race for £500m Suffolk construction framework

Construction and building services firms called up for East of England four year deal
12 hours ago

Mace employs robot dog to avoid slip and trips in tunnel

Robot working in dark and hazardous conditions under Heathrow Airport
13 hours ago

Administrator details confirmed at Southampton M&E firm

Begbies Traynor now in charge at Working Environments as suppliers face large losses
1 day ago

Former Galliard chief takes helm at Inland Homes

New CEO Don O'Sullivan sets out to return south east house builder to profitability
13 hours ago

Applicant numbers nosedive for construction vacancies

Recruitment market gets even more competitive - how the Enquirer can help
1 day ago

Industry veteran to head Henry Bros northern arm

Peter Commins, former Kier and Balfour Beatty northern chief, to spearhead growth drive
13 hours ago

Housing association shuts in-house modular factories

Swan closes loss-making steel frame and cross-laminate timber factories
2 days ago

350-homes approved around iconic London Tube station

Housing blocks to be built around Grade II-listed Hounslow West Tube station
1 day ago

Domis set for £195m Boddingtons Brewery scheme

Developer Salboy buys Manchester site to kickstart long-awaited 556 homes project
2 days ago

John Lewis £500m funding deal to build 1,000 rental homes

Deal to advance BTR flats at store sites in Bromley, West Ealing and Reading
2 days ago

Esh launches new housing retrofit division

Esh Retrofit Solutions will target market to improve the energy performance of social rented homes
2 days ago

Eric Wright wins tricky £52m Liverpool transformation

Contractor working with engineers at Ridge and Partners on "challenging" Stanley Lock Flight site
4 days ago

Investment giant buys Bristol M&E contractor

RDCP Infrastructure acquires Avon Combined Electrical Services
5 days ago

Demolition start for £50m Farnworth town centre rebuild

Caddick Construction is tipped for main works due to start in the spring
5 days ago

L&G Modular strikes deal to build 1,000 affordable homes

Modular homes business teams up with Hampshire's Vivid housing association
5 days ago

Former Erith operations director joins John F Hunt

Scott Exell named new operations director at demolition specialist John F Hunt
5 days ago

Green light for £135m Leeds twin tower resi scheme

Construction to start in New Year on 500 build-to-rent apartments
5 days ago

Mace hits 1m tonnes carbon saving target for clients

Present work pipeline betters 2026 carbon emission saving target
5 days ago

Plans in for £40m surf park at former Kent colliery

Seahive surf lagoon and health resort will be built near Deal
6 days ago

Crushed demolition worker vows to return to industry

Shannon Brasier hoping to return to construction following horror accident
6 days ago

Mount Anvil to start 900-home North London estate rebuild

Planning approval paves way for Barnsbury Estate rebuild in Islington
6 days ago

Green light for major laboratory campus in Cambridge

Developer BioMed to tender first building on 600,000 sq ft lab complex in the New Year
6 days ago

Belfast firm signs the biggest work deal yet under Project Gigabit

Fibrus to hook-up rural Cumbria to lightning-fast broadband under £108m deal
5 days ago

McLaren wins Leeds logistics park contract

Work to start imminently on warehouse complex for Firethorn Trust
6 days ago

Contractor services