Troubled construction firm nears refinancing package – but warns again on losses

Huthwaite construction contractor nmcn says it could announce details of a new refinancing package within the week.

The company says it is in the final stages of bilateral talks over the cash injection, but warned that it will make a weighty loss of around £24m in its forthcoming annual results.

In a statement this morning, nmcn said: “The company is working towards reaching a position where the refinancing will be announced within the next week enabling the company to address the current significant working capital strain on the group and place the group in a position to take advantage of the growth prospects within its addressable markets. Should the refinancing not be successfully concluded the group will have to consider its remaining options. A further announcement will be made in due course as appropriate.

“As previously noted, activity levels across the business are reasonable although there are performance issues in the group’s building business unit and challenges on two loss making contracts in water. It is therefore now expected that this will result in the group reporting a loss for the current financial year.”