Construction group North Midland set to build on record turnover
A Midland construction group has announced record turnover, with profits up 165% on the previous year.
North Midland Construction, based in Sutton-in-Ashfield, saw turnover reach £250m for 2016 (2015: £217.6m). Pre-tax profits rose to £2.06m (2015: £606K), with operating profit leaping to £2.24m (2015: £847K), an increase of 15%.
Earnings per share were up to 25.95p (2015: 12.32p) and the firm is proposing a final dividend of 3p (2015: Nil).
The firm, which also has offices in Warrington, Leeds, Warwick and Raynesway, has also secured a workload for 2017 at circa £225m (2015: £181m), which equates to around 80% of the firm’s 2017 budgeted revenue.
John Homer, chief executive, said: “These results demonstrate the considerable strategic advancement made in the business over the last year. Progress is being made to strengthen the quality of the service that we provide to our customers. We continue to receive positive feedback on our operational performance from across our stakeholder base.
“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 80% of this year’s budgeted turnover with a healthy pipeline of future opportunities visible.”
He said the outlook for the firm’s future trading remained positive and provided the opportunity to further improve earnings.
The firm said its work in the water sector remained strong, with both turnover and margin growth being achieved. There is also great potential for further progress, it added.
Customers in the sector include Severn Trent Water, United Utilities, South West Water and Yorkshire Water. Notable project carried out in the period were the Elan Valley tunnel and the Ambergate reservoir, both for Severn Trent.
The Construction division was also said to have performed well following a period of consolidation.
“We are now in a period of consolidation to ensure that we have the correct people and management systems in place to continue with this success. Notable projects undertaken in the year include the completion of the Allen House student accommodation scheme in the centre of Leicester. The division is well placed for further controlled growth in the regional building market,” it said.
The Utilities division has undergone considerable restructuring and change following several years of unsatisfactory performance.
“A new management structure is in place and relationships with all of the customers have been reviewed,” it said.
“Notable works have been carried out for Virgin Media on both their regular and strategic expansion programmes. The market is very strong in this sector with significant spending plans in place across the whole country. The performance of this division is under careful scrutiny to ensure that the changes made achieve the desired results and achieve an acceptable margin return.”
