North Midland shuts loss-making building division
North Midland Construction has closed its loss making building division and folded its operations into the civil engineering division with new management.
The move follows North Midland Building delivering an escalated loss on the previous year of £4.8m on revenues that were down by 24% to £16.7m. The subsidiary has written of £1.26m of goodwill due to problems on three projects.
Group revenue for the year to 31 December 2011 increased by 1.6% to £167.2m (2010: £164.5m), but the result was a pre-tax loss of £783,000 (2010: £3.7m profit).
The civil engineering division also had a difficult year, with projects cancelled or deferred. Revenue fell 31% to £35.3m and operating profits by 17% to £1.63m.
The highways division had a better time, increasing revenue by 40% to £18.8m, with operating profits of £830,000.
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This article was published on 30/03/2012 (last updated on 30/03/2012).