Contractor points to tough market conditions and difficulties with one major project in downbeat update

North Midland Construction pointed to the tough market conditions and difficulties with one major project as the context for a bleak performance over the first quarter of the year.

In an update to the City, the contractor said first quarter profit before tax fell by 44% to 拢350,000 from 拢620,000 on the same period last year, with revenues falling by 8.6% to 拢44m from 拢51m in Q1 2011.

It said secured workload that was expected to be completed within the current financial year was approximately 拢134m.

The firm, which issued a profit warning last November, said the consolidation of the formerly loss-making building subsidiary into the civil engineering division had been completed and the new operation returned a 鈥渟mall profit during the period鈥�.

The firm said the result of a 鈥渟ignificant claim鈥� to recoup losses on a major building project, was 鈥渟till to be determined鈥�. 

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