North Midland Construction (NMC) made a pre-tax profit of £847,000 in 2015 (2014: £2.8m loss) on revenue up 13% to £217.6m (2014: £193.2m)
Excluding legacy contracts, underlying profit before tax increased to £4.45m.
The board said that it was now “cautiously optimistic for the future” but “due to the losses incurred in previous two years and the forecast level of growth this financial year, the directors do not recommend a final dividend”.
The Building division, devolved from the old Building & Civil Engineering division at the beginning of the year into a standalone division, made a profit of £190,000 from revenue of £11.2m
The Civil Engineering division continued to struggle, however, as settlement and completion of the old legacy contracts resulted in the division incurring a loss for the year of £830,000 on revenues of £7.8m. The concentration on legacy contract resolution has affected business development input. NMC has shied away from taking on new work; tender opportunities to the value of £35m were turned down during the year.
The Utilities division made an even bigger loss, of £2.0m, despite revenue being up 49% to £32.6m. However, current workload indicates a better year ahead.
The Highways division did much better, with profit up by 32% to £440,000 on revenues up 55% to £38.8m.
NMCNomenca also maintained its profit levels, making £2.9m on revenues of £88.7m.
The cash position remains sound, with a year-end balance of £6.62m (2014 £5.28m).