Nottinghamshire based North Midland Construction PLC (NM Group), a UK provider of civil engineering, building, mechanical and electrical services to public and private organisations, has announced its interim results for the six months ended 30 June 2016 which bode well for the future according to company’s recently appointed chief executive officer, John Homer.
Revenue for the first half of the year increased by 20.8% to £129.58 million and profits before tax reached £0.51 million, up from £0.14 million for the equivalent period last year.
Profits for the period for the civil engineering division, which operates mainly in the power sector, were £0.13 million on increased revenues of £13.8 million. This is on the back of it recently expanding into the waste to energy market which has generated some additional work with this sector offering promising future growth opportunities too. Recent contracts secured include a crop digester in Nottingham and a pumping station for the Doncaster Drainage Board.
The building division has had an excellent half year. Profitability increased by 73.4% to £0.25 million with revenue up by 96.6% to £11.59 million with projects currently on site at a number of different locations. The good news is that the division has also already secured in the region of £11 million of work for the remainder of the year which is set to continue into 2017.
Similarly profitability in the Highways division has improved, with profits up from £0.17 million to £0.22 million, on an increased revenue of £20.04 million. The recent expansion into the South West has been successful with already work secured there and around £13 million of contracts confirmed for the remainder of the year.
The utilities division increased revenues by 16.8% to £15.47 million, but suffered losses and the division is currently undergoing a major restructure.
The AMP6 programme for Severn Trent Water, the joint venture with Laing O’Rourke at Ambergate Reservoir in Derbyshire and the joint works with Barhale PLC on the Elan Valley Aqueduct which runs from mid Wales to Birmingham are well underway. As a result of these large projects, NMCNomenca has increased revenues by 18.2% to £49.59 million with operating profitability increasing by 91.7% to £1.38 million. In addition the division has recently been awarded a £54.60 million contract by BNM Alliance in a joint venture with Barhale PLC for the Newark Sewer Strategy and secured contracts for the remainder of the year currently stand at £39.34 million.
Despite an increase in the number of frameworks secured, the water industry’s transition from AMP5 to the AMP6 programme has resulted in a delay in orders. Consequently revenues for the Nomenca subsidiary declined by 20.3% to £19.06 million and operating profitability by 7.0% to £0.2 million. However order levels have improved recently and the secured workload for the remainder of the year is already £25.28 million.
“We are delighted to show the improvement in these results which reflect the success of our strategy of expanding our client base by moving into new sectors and areas, as well as building on relationships with our existing customers which has led to additional work with them,” said John Homer. “We would like to thank them for their continued support and also the considerable efforts of our people who have put in a lot of hard work . We look forward to building on this for the future success of the business, particularly as we approach the company’s seventieth anniversary which we will be celebrating with our staff later this year.”
“It is really encouraging to see the strong order book for all the divisions so the future for the NM Group looks good,” concluded John.
