Profits dive at North Midland Construction

Profits at Huthwaite-based North Midland Construction dropped dramatically last year with its chief executive blaming legacy contracts for the decline.

While underlying profit leapt to £8.2m, overall profits fell sharply from £2.6m to £742,000. Revenues were up at £291m.

John Homer, chief executive, said: “It is disappointing that focus on a healthy underlying Group performance from our continuing operations appears to continue to be diverted by the outcome on the remaining legacy contract.

“We are pleased by the underlying position and in particular the success achieved on driving our cash balance and the quality of the forward order book.

“There are positive signs of continued growth in our chosen market sectors. Our strategy is focused on realising the potential that exists for us to prosper through careful selection and execution of the work that we take on. Our forward order book is at just over 90% of this year’s budgeted turnover with a healthy pipeline of future opportunities visible.

“Our people are the overarching differentiator and the driver for our continued success. We will maintain our investment in the development of our talent pool.

“The outlook for our future trading remains positive and provides the opportunity to further improve the earnings from our operations.”