Contractor’s pre-tax profit soars to £2m as volumn of work from telecommunications increases
North Midland Construction saw pre-tax profits soar 49% during the first half of this year after an improvement in its utilities work.
The firm’s pre-tax profit increased to £2m from £1.3m. Turnover also increased from £71.3m to £77.9m. And its building division also improved, from £1.9m last year to £11.3m this year.
Chairman Robert Moyle said: “All divisions were profitable, with an improved performance from the Utilities division on the back of significantly increased volumes from the telecommunications companies, driven by the demand for increased broadband capability.
“The Civil Engineering division benefited from the commencement of the AMP5 programme for the water industry and the resolution of various schemes on the Minworth Project for Severn Trent Water.
“North Midland Building continues to be severely affected by the downturn in demand and a nominal return was delivered, albeit on a revenue increased five fold.
“Tender opportunities are on the increase, but margins remain extremely competitive and further orders are required to deliver the forecasted result for the year.
“Secured group revenue for this financial year currently stands at £170 million, compared with market expectations of £184 million.
“There is a need to secure further orders, most particularly in the non-water elements of the Civil Engineering division and the Building division.
“The market place remains extremely competitive, but the Group is well placed with its wide range of capabilities across the sector to deliver.”