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Margin focus boosts North Midland Construction profits

NCE stock business

North Midland Construction has seen a huge increase in profit in its half year results for the first six months of 2017.

Profit for the first six months of 2017 was £1.2M, compared to £512,000 for the same period last year, an increase of 138.3%.

Revenue went up 4.3% from £129M to £135M.

Chief executive John Homer said: “These results demonstrate the continued strategic advancement made in the business during the trading period. Our focus on enhanced margins and cash generation is beginning to become apparent and is anticipated to continue going forwards.

“We continue to invest significantly in the development of our talent pool as we believe that our people are the overarching differentiator and the driver for our continued success.

“The outlook for our future trading remains positive and provides the opportunity to further improve the earnings from our operations. The Board is anticipating enhanced like-for-like revenue growth in the second half of the year, coupled with an enhanced operating margin percentage.”

In the construction sector, the results were impacted by delays in projects getting underway, so revenue declined by 3.4% to £11.20 and profitability by 68.5% to £78,000.

Improved results came from the highways and a huge turnaround from loss to profit in telecommunications.

 

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