18th May 2009 11:39
North Midland Construction PLC ("the Group")
18 May 2009
Interim Management Statement
North Midland Construction PLC is today issuing its Interim Management Statement covering the period between 1 January 2009 and today, as required by the UK Listing Authority's Disclosure and Transparency Rules.
The economic climate remains very difficult, particularly for the construction sector. However, the significant amount of framework contracts secured are still providing an adequate workload. 62% of projected revenue is already in place, but there is a requirement to win some contracts in the short term, particularly within the building subsidiary. However, contracts for the construction of two new fire stations have been secured within the last month by North Midland Building. All divisions and subsidiaries are currently trading profitably, although consolidated revenue and profit has been at a lower level than for the comparable period last year. The Board is still confident that the full year forecast can be attained. However, to achieve this forecast the Group has had to reduce costs and as a result a thorough review of the organization has been conducted, which unfortunately has resulted in some redundancies.
The utilities division has been awarded a significant contract by KCOM Group (KCOM.L). This contract relates to the construction element of the high speed communications network for the South Yorkshire Digital Regions (SYDR) project consortium. Thales is the prime contractor for the project. Construction is due to commence shortly.
The Group's banking facilities have recently been renewed, which will provide sufficient working capital for current Group requirements.
The Group's Annual General Meeting is being held on 28 May 2009 at 12.00 noon at the Group's head office at Nunn Close, The County Estate, Huthwaite, Sutton-in-Ashfield, Nottinghamshire NG17 2HW.
Contacts:-
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North Midland Construction PLC
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01623 515008
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Robert Moyle, Chairman
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Mike Garratt, Finance Director
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Brewin Dolphin Investment Banking
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0845 270 8610
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Andrew Emmott
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