Nmcn now expects losses to hit £43m

Grant Prior 2 months ago
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Troubled civils contractor nmcn has updated its expected losses to £43m.

Nmcn also confirmed further delays to publishing its latest results in a Stock Exchange announcement on Monday afternoon.

The latest loss figure is £19m more than the £24m predicted in May and follows further problems unearthed in the building division.

Nmcn said: “The Company is continuing to work hard to prepare the annual report and accounts and liaise with its auditors to finalise the audit of the financial statements for the year ended 31 December 2020.

“The Group is now expecting to report £43m of aggregate losses identified since the position reported in the 2019 financial statements, this figure remains subject to audit.

“The increased losses are largely covered by contingencies included within the working capital and cash projections used to support the Company’s refinancing and also includes some losses which are likely to reverse in FY21.

“In addition, it is no longer expected that the 2020 results will be released in August, a further update will be provided in due course.”

Investment vehicle Svella revealed plans to take a controlling interest in nmcn following a £24m refinancing deal in June. Shares in the firm are currently suspended.

Lee Marks nmcn Chief Executive Officer said: “We are looking forward to fully recapitalising the business allowing us to normalise our relationships with our supply chain.

“Since joining I have been impressed by our people, and their dedication to our much-valued customer and supplier base, who are working alongside us to achieve an exciting future for nmcn.

” I look forward to leading the business into a new positive chapter alongside my Executive team and Svella plc.”

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