Mountfield new business at levels not seen since 2008

Grant Prior 8 years ago
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AIM-listed contractor Mountfield is enjoying a surge in profitability as the data centre building, fit out and refurbishment specialist enjoyed new business enquiries “not seen since 2008”.

Final results for the year to December 31 2013 show pre-tax profits hit £765,339 from £218,505 last time.

Turnover dipped to £12.3m during the year from £13.5m reflecting Mountfield’s ability to be”more selective in the contracts that it took on and also delayed starts on a few contracts.”

Mountfield is now planning to continue with its acquisition and expansion strategy which was put on hold when the recession hit in 2008.

The firm said: “The Directors are now keen to see the Group’s revenue and profits increase through organic growth and through carefully selected acquisitions.”

Operating margins at Mountfield hit 6.9% from 1.4% but the firm will not reinstate dividend payments to shareholders as it concentrates on cash flow.

The group consists of three trading companies – Mountfield Building Group Limited, MBG Construction and Connaught Access Flooring.

Mountfield said: “The recession that began at the end of 2008 had an immediate and dramatic impact on the Group’s turnover and profitability and it was not until late 2012 that the Group noticed the first signs of recovery and an increase in construction demand.

“The Group is now experiencing levels of activity in terms of work in hand, enquiries and tenders last seen in the middle of 2008, and it is from this that the Directors have concluded that the activity levels will be sustained and that their optimism for the Group’s future is well based.

“The Board believes that the time spent marketing and developing new business during the recession will result in the award of contracts in addition to those that are currently being negotiated.”

 

 

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