Surge in water work boosts results at nmcn

Grant Prior 5 years ago

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.”

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