M&E arm remains a step ahead as North Midland sees profits slump
Nomenca, the m&e division of North Midland Construction, has released encouraging interim results with £0.48m profits on revenue of £21.8m for the six months to 30 June 2008. This compares with £19.5m in the same period in 2007.
Holding company North Midland Construction (NMC), however, has seen whole group revenue decline to £103.5m from £107.3m for the comparable period last year, with profitability reduced to £0.79m from £1.98m.
NMC, which employs more than 1000 people on various sites around the country, has revealed that it is implementing a redundancy programme that will lead to a “handful” of job losses.
However, NMC’s Mike Thornett said the firm was “almost certain” that no employees within the Nomenca subsidiary would be laid-off.
Commenting on the Group’s performance, chief executive Robert Moyle said: “The overall economic picture is becoming increasingly difficult, with a general decline in tendering opportunities, project cancellations due to funding problems and rapidly increasing costs, most particularly in energy and materials.”
Electrical and Mechanical Contractor