Downturn will keep 2008 figures below last year's but still in line with revised forecasts
North Midland Construction has reiterated that its 2008 turnover will fall below last year's figure of £211m because of the downturn.
In a trading update covering the period from 1 July to 13 November, the company blamed the cancellation of contracts and the deferment of the second phase of an existing deal.
It said: “Revenue and profit will fall short of 2007, but will be in line with the reduced revised forecasts.”
One consensus forecast estimated that turnover would be in the region of £190m this year.
The UK-based company also warned that it is having problems with cash flow. It said: “The maintenance of cash flow is proving difficult in the current climate and the group is experiencing a general delay in payments, but is confident that trading within its existing banking facilities can be maintained.”
On an upbeat note, it added: “In spite of the recessionary nature of the economy, generally tender opportunities remain at a satisfactory level and the group has a forward order book of in excess of £70m for 2009.
“Whilst the market place for construction will remain very difficult, the group is confident that it will weather the storm and that further progress can be achieved.”
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