7th Sep 2015 07:06
LONDON (Alliance News) - Construction company Mountfield Group PLC on Monday saw its shares surge in opening trade after it posted a big rise in interim pretax profit as higher revenue and benefits from its restructuring plans flowed through.
Mountfield said its pretax profit for the six months to the end of June was GBP245,640, up from GBP4,391 a year earlier. Revenue rose to GBP7.3 million from GBP5.6 million, driven by a 55% rise in revenue in its Mountfield Building Group unit and a 15% rise in revenue from its Connaught Access Flooring business.
Administrative costs were lower in the year following the restructuring programme the group undertook, with costs in the Mountfield Building Group business halving year-on-year.
Mountfield said its secured order book for the full year is at GBP13.5 million, with additional contracts currently being negotiated.
"The increasing optimism of the board for the group has been evident as the half year has progressed and I am satisfied that real improvements have been achieved during this period. This turnaround will provide the basis for further organic growth and also potential inorganic growth," said Andy Collins, Mountfield's chief executive.
"The board is extremely pleased with the progress that has been made and believes that the group's prospects are better now than they have been for a number of years," Collins added.
Shares in Mountfield were up 16% just after the open to 1.91398 pence, one of the best performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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