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Mon April 12 2021

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Mountfield strategy switch pays off

30 Jun 15 The recent decision by the directors of Mountfield to stop taking on subcontracting work for larger construction businesses is already producing the desired results, it seems.

Mountfield Building Group (MBG) has seen “a significant improvement in its trading performance” since withdrawing from subcontracting and only taking on projects in direct contract with the client.

Mountfield announced the strategy shift in April after a review determined that the high-risk fixed-price nature of subcontracts was impacting margins.

In a trading update today, Mountfield said that this change, coupled with a progressive reduction in overheads resulting from the change in strategy, “is already producing measurable benefits”. The company has secured a further £2.1m of direct works for completion in 2015 and is negotiating several other contracts.

Group chief executive Andy Collins said: “The group board is excited to see the way in which the fortunes of MBG are being turned around. The re-focussing of the company towards direct works and cutting its costs to make it more competitive is working well in a market where there are significant opportunities of profitable work on offer for competitively run construction businesses that MBG are now able to pursue".

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