North Midland Construction has got the business back on track returning stronger group profits despite suffering losses at its telecoms business.
While the construction firm’s key construction, highways and water divisions returned better profits last year, the telecoms arm suffered a £2.6m loss on flat revenue of around £30m.
North Midland Construction said it had now restructured the management at the telecoms business with group chief executive John Homer taking direct leadership of the business, which works mainly for Virgin Media.
Homer said: “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.”
While group turnover jumped 15% to £250m, pre-tax profit edged up to £2.2m, compared to £606,000 in 2015, after taking into account of a £3.5m loss on legacy contracts.
Homer said work on the last remaining legacy project was completed in 2016, with North Midland now pursuing a final settlement claim with the client.
He added: “We remain confident in in the outlook and expect the positive progress achieved to continue into 2017 and beyond. Key successes will continue in water and improvement will be seen in the other divisions. The strategic focus in utilities will enhance the performance of the group in the short term.”
In the year ahead North Midland aims to further expand its highways business in the North West and Northern Home Counties.
from Construction Enquirer http://www.constructionenquirer.com/2017/03/31/north-midland-construction-telecoms-losses-tarnish-profits/
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