An unspecified major building project is continuing to dog North Midland Construction, to the extent that its 2011 results will now be ‘significantly below’ market expectations.

Last November the company disclosed that delays to the project had cost it £2m. A further review has revealed that cost overruns and delays are even worse than it originally thought. Completion has been put back again further, at a cost of an additional £1.5m.

This £3.5m hit will be taken in the accounts of the group’s North Midland Building subsidiary for 2011.

A major reorganisation has now been undertaken within North Midland Building. Heads have rolled and it is now under new management.

A significant claim for losses incurred on this project is currently being pursued. 

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