Construction business has been impacted by project delays
North Midland Construction has announced a significant surge in pre-tax profit, in its latest financial results.
The interim results for the six months ended 30 June 2017 show that pre-tax profit was 拢1.22m 鈥� more than double the 拢0.51m reported for the same period the previous year. Revenue increased by 4.3% to 拢135m for the first six months of this year.
However, the firm鈥檚 construction business has suffered a drop in performance. Robert Moyle, the company鈥檚 chairman, said: 鈥淭he half-year result for construction was affected by delays in secured projects getting underway, so both revenue and profitability were impacted.鈥�
Construction revenue declined by 3.4% to 拢11.2m, down form 拢11.6m for last year and profitability fell by 68.5% to 拢78,000, down from 拢248,000 for the same period last year.
But he insisted that the projects are 鈥渘ow well underway鈥�.
The firm also reported that its remaining order book for the year stood at 拢23.5m and that 拢15m of next year鈥檚 revenue had already been secured.
As well as construction, the contractor also works in the power, highways, water and telecommunications sectors.
John Homer, chief executive at North Midland, was bullish about the company鈥檚 future prospects in these sectors. He said: 鈥淭he outlook for our future trading remains positive and provides the opportunity to further improve the earnings from our operations.
鈥淭he board is anticipating enhanced like-for-like revenue growth in the second half of the year, coupled with an enhanced operating margin percentage.鈥�
The firm鈥檚 confidence is reflected in its proposal to double the interim dividend per share to 3.0p 鈥� up from 1.5p for the first six months of 2016.
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