8th Aug 2019 10:42
(Alliance News) - Engineering and construction company NMCN PLC on Thursday upped its first half dividend following profit and revenue rise.
For the six months to June 30, the company recorded 38% rise in pretax profit to GBP3.5 million from GBP2.5 million. Revenue also rose year-on-year, by 14% to GBP184.0 million from GBP161.2 million following growth in both Built Environment and Water segments.
Revenue in Built Environment grew by 6.3% to GBP51.9 million from GBP48.8 million, that was despite market uncertainty delaying commencement of major schemes, NMCN said.
The company's planned projects includes a partnership with state-owned Highways England Company Ltd to make GBP28.0 million worth of improvements on the 12.4 kilometre long M621 motorway, which serves central Leeds. The development will begin in 2020 once the design stage is complete.
In the Water segment, revenue rose 18% to GBP132.1 million from GBP112.4 million and it has a secured order book of GBP238.0 million, up 3% from GBP231.0 million in the same period last year.
The company raised its interim dividend by 50% to 9.00 pence per share from 6.00p due to an "increase in profitability" and in line with progressive dividend policy.
Chief Executive John Homer said: "These results demonstrate the continued progress made in the business against our strategic objectives. Our focus on profit improvement and cash generation continues to show returns.
"The outlook for future trading remains positive and provides the opportunity to maximise earnings from our operations. We are confident that the board's expectations will be achieved, with net margins slightly exceeding 2%."
Shares in NMCN were up 4.1% at 564.75 pence each in London on Thursday morning.
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