8th Feb 2016 10:28
LONDON (Alliance News) - Mountfield Group PLC said on Monday it expects to achieve sustainable profitability in 2016, after a strong performance from its subsidiary Connaught Access Flooring Ltd in 2015, as well as the successful restructuring of its Mountfield Group Ltd business.
The construction company said its Connaught subsidiary had taken "a major step forward in its development and reputation" in 2015, winning a contract to supply and install flooring to an office building in the City of London, and developing its range of services to include whitewall partitioning and external cladding. In the newly-created Special Works division, aimed at smaller flooring contracts, Connaught's revenue was around GBP2.0 million. Mountfield Group said it expects this to increase in 2016.
Mountfield Group said it also had made significant changes in its Mountfield Group Ltd division during the year, re-focusing to no longer undertake high-risk fixed-price contracts and pushing down monthly overheads by 40% in the process.
It said the completion and settlement of the last two fixed-price legacy projects which commenced in 2013 and 2014 negatively affected what would have otherwise been a profitable year, although it said this gave the board confidence that the business will now be profitable going forwards.
Mountfield Group, which said it will be putting more focus on fit-out work and areas allied to it in 2016, said its outlook for the year was "extremely good", with its forward order book in line with the board's targets and revenue of GBP2.0 million already secured.
Initial discussions with potential targets to acquire for the implementation of its strategy to concentrate on fit-out work already have taken place, the company said.
Mountfield shares were down 11% at 1.05 pence on Monday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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