11th Jun 2018 10:05
LONDON (Alliance News) - Construction and flooring firm Mountfield Group PLC said Monday its 2017 profit doubled after revenue grew strongly and it reduced costs as it looks forward to a "bright" future for its two main business units.
In 2017, pretax profit doubled to GBP864,372 from GBP442,544 the year prior. This was after revenue grew to GBP12.7 million from GBP9.6 million the year before.
Profit performance was also helped by a modest fall in administrative expenses. Admin costs fell to GBP1.3 million from GBP1.4 million the year prior.
Mountfield - which operates through two subsidiaries Connaught Access Flooring Ltd and Mountfield Building Group Ltd - does not pay a dividend.
"The board believes that both CAF and MBG are now, with the benefit of low cost structures, excellent client bases and record high levels of secured work able to perform strongly on a regular and sustainable basis," Mountfield Chairman Peter Jay said.
"The outlook for CAF continues to be strong into 2018/19 and based on the demand for high quality, large commercial flooring contracts, its leading position in its market place and the proposed expansion of its business into the supply and installation of new products associated with CAF's core activities," Jay added. "The board believes that the outlook for CAF will remain increasingly bright for a number of years with strong demand for its services both in the UK and overseas."
"The board takes a similar view of MBG's prospects and notes the major change in its financial performance that followed from the reduction of its cost base and the change to a strategy of pursuing lower risk contracts predominantly direct to the client and is satisfied that MBG's performance will show significant improvement during 2018 and 2019," Jay continued.
Shares in Mountfield were 3.6% higher at 2.02 pence on Monday.
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