Major fall in profits at Notts construction giant
Huthwaite construction and engineering firm nmcn has posted a big drop in profits for the six months to June 30.
Profits over the period dropped from £3.4m last year to £890,000m this year – a drop of 76.6%. Revenue also fell by 1.3% to £1.81bn for the six months.
nmcn is blaming site shut downs due to Covid-19, delayed contracts and “completion challenges” on a major infrastructure scheme.
John Homer, chief executive said: “The first half of 2020 comprised two very different quarterly trading periods. We started the year well, with the financial results reflecting an encouraging order book and the benefit of a number of our initiatives. In the second quarter we faced the immediate challenges of COVID-19 with the suspension of projects and the disruptive impact of new operating requirements and these were compounded by some other operational issues. In overall terms, I am delighted to be reporting a profitable result for the period which we believe further demonstrates the value of our business model and dedication and capabilities of our teams.
“In the longer term, the attractions and opportunities of our addressable markets remain. In the near-term, we are likely to continue to endure the constraints of a coronavirus environment but with a healthy order book and strong fundamental growth drivers and opportunities within our addressable markets, we believe the business will continue to progress.”