Contractor points to tough market conditions and difficulties with one major project in downbeat update
North Midland Construction pointed to the tough market conditions and difficulties with one major project as the context for a bleak performance over the first quarter of the year.
In an update to the City, the contractor said first quarter profit before tax fell by 44% to £350,000 from £620,000 on the same period last year, with revenues falling by 8.6% to £44m from £51m in Q1 2011.
It said secured workload that was expected to be completed within the current financial year was approximately £134m.
The firm, which issued a profit warning last November, said the consolidation of the formerly loss-making building subsidiary into the civil engineering division had been completed and the new operation returned a “small profit during the period”.
The firm said the result of a “significant claim” to recoup losses on a major building project, was “still to be determined”.