Surge in water work boosts results at nmcn

Grant Prior 5 years ago
Share

A surge in water projects has helped nmcn boost profits and turnover despite difficult market conditions.

Chief executive John Homer is confident about future prospects
Chief executive John Homer is confident about future prospects

Results for the year to December 31 2018 show revenue up to £340.4m from £291.7m last time as pre-tax profits increased to £6m from £1m.

The company’s cash position also strengthened by £16.35m with a year-end balance of £33.35m as its average payment period for suppliers improved to 38 days.

Nmcn – which was formerly known as North Midland Construction – said it has largely resolved all legacy contract disputes and is “well positioned to take advantage of the increase in infrastructure spending plans.”

It said: “The UK construction industry is struggling to keep up with the demand to maintain the existing infrastructure and the need for investment to support future economic growth.

“The Group has established positions in these markets and is well situated to take advantage of the potential for further growth as well as the challenges faced by many high profile troubled competitors in the industry.”

Business poured in at the water division where turnover rose to £244.5m from £170.5m thanks to major infrastructure schemes and framework business including the AMP6 programme.

The Built Environment division saw turnover dip to £95.8m from £131.8m as it made an operating loss of £95,000 due to a problem Telecoms contract.

A restructure of the division is currently underway.

Chief Executive John Homer said: “These results demonstrate further advancement against the targets in our strategic plan.

“They mark the achievement of a respectable milestone on headline key performance measures and provide a solid platform for further progress.

“Our performance on cash management is particularly pleasing, with a strong year-end balance and net cash throughout the year. The strength of our ongoing operations allows us to continue to exercise rigour in the work that we chose to take on.

“There are positive signs of continued opportunities for us to grow in our chosen market sectors.

“Our forward order book is just over 90% of anticipated revenue for the year ahead with a healthy pipeline of future opportunities available.

“The future trading prospects look positive as we continue to progress our strategic plan. Our people remain the overarching differentiator and the driver for continued success. We will maintain our investment in the development of our talent pool.”

Latest news

Plan in for £3bn Lincolnshire mega data centre

3.3m sq ft Humber Tech Park will be one of Europe's largest data centres
3 days ago

Green light for Digbeth 1,300 homes scheme

Warner’s Fields scheme to start with excavation and landscaping of the River Rea
3 days ago

Flagship biodiversity net gain scheme flawed

NAO warns Government's flagship green development scheme at risk of failure
3 days ago

£210m M3 Junction 9 upgrade gains consent

VolkerFitzpatrick to start work in early 2025 on Winnall roundabout, near Winchester
3 days ago

United Living wins 14-year L&Q homes repairs deal

Trafford housing upkeep deal worth £205m
3 days ago

£400m Lewisham resi-led scheme advances

Land deal paves way for Amro Partners' 1,000-home London scheme
3 days ago

McLaren gets go-ahead for Grade II listed Leeds student scheme

Springfield House to be revamped and two new wings added
3 days ago

Piling giant to fit people alarms on all rigs

Cementation Skanska upgrades site safety systems
3 days ago

Vistry to make £800m profit after subcontractor cost cuts

House builder bullish about shareholder returns after asking suppliers for discounts
4 days ago

Shareholders approve £2.5bn Barratt and Redrow merger

Final hurdle is for the competition regulator to approve the deal.
4 days ago

Green light for £80m Leith waterfront revamp

Build-to-rent homes and student accommodation scheme to be built
4 days ago

Tilbury Douglas clears Interserve legacy jobs to return to profit

Revenue tops £500m in first year as standalone contractor
5 days ago

Land deal paves way for Manchester civil service office hub

Government buys five acres at former Central Retail Park
4 days ago

Speller Metcalfe wins Wolverhampton library upgrade

Full works are due to start in the autumn
4 days ago

Skills shortage puts big infrastructure projects at risk

Government failing as an intelligent client and now over-reliant on consultancies
5 days ago

Contractors face further insulation board price hikes

Cost of PIR insulation boards set to rise another 10%
5 days ago

Henry Boot wins £36m Rotherham Markets job

Project involves upgrading existing market and building a new library
5 days ago

Keltbray hires new head of infrastructure procurement

Lukasz Olszewski will oversee rail, energy and highways business units
5 days ago

Tunnel fit out robot to revolutionise civils work

Costain and VVB Engineering part of innovative consortium
5 days ago

Funding deal for £86m wind turbine test centre

Latest investment at National Renewable Energy Centre in Blyth
6 days ago

Plan in for Manchester ‘upside-down’ 18-storey tower

Landmark cantilevered NXQ building plan for city Northern Quarter
6 days ago

London 25km Super Sewer hooked up for commissioning

Tideway completes connection to existing Lee Tunnel sewer system
6 days ago

£200m Lincoln ring-road approved

North Hykeham Relief Road granted planning permission
6 days ago

£1bn Manchester Airport City plan rebooted as new sci-tech hub

Plan pivots from offices to science and manufacturing campus, called MIX Manchester
7 days ago

Record results at maintenance specialist Renew

Infrastructure maintenance work continues to pay off for contractor
6 days ago

Barhale lands £21m shaft scheme for Thames Water

Civils specialist bags latest upgrade deal on Thames Water Ring Main
6 days ago

Caddick names new north east director

Former Laing O'Rourke project lead joins Yorkshire contractor
6 days ago

Mount Anvil wins London Camden estate rebuild

Deverloper wins £133m Bacton Phase 2 development in Gospel Oak
7 days ago

London Met Uni seeks firm for £280m estate upgrade

A single partner contractor will deliver 10-year building upgrade plan
7 days ago

Top 30 M&E contractors set for growth – ranking

Growth in data centres and commercial refits creates optimism for year ahead
7 days ago

Contractor services