Company reveals £1.7m pre-tax profit despite setting aside £1.6m for bid rigging fine
North Midland Construction has managed to make a £1.7m pre-tax profit in 2009 despite the hefty fine imposed by the OFT for bid rigging.
In its interim results for the year ended December 2009, the multi-disciplinary firm made a pre-tax profit of £3.3m. However, that fell to £1.7m when the £1.6m set aside to pay the OFT fine was taken into account.
The firm saw a heavy drop in revenue from £202m in 2008 to £144m in 2009. Revenue at North Midland's building subsidiary fell 66% to £10m but the firm picked up civils work from organisations such as Birmingham City Council and Severn Trent Water.
Despite winning new work chairman Robert Moyle warned of challenging times ahead. “The civil engineering division experienced another very difficult year with a further reduction in tender opportunities and curtailments in expenditure on framework contracts. There are a record number of tender submissions in abeyance, either awaiting finance or a decision to proceed on economic grounds.”
With regards his building division Moyle said: “The marketing strategy was completely refocused to concentrate on the public sector and the results have been forthcoming. However, the impact will not materialize until 2010, for which the workload is promising.”
North Midland will appeal the OFT decision on July 9.