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Sun July 21 2019

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Nmcn invests cash in housing

16 May Construction contractor Nmcn, formerly North Midland Construction, is stepping up its nascent house-building activities.

Artist's impression of Nmcn's Sutton-in-Ashfield development
Artist's impression of Nmcn's Sutton-in-Ashfield development

Nmcn has just completed 10 houses in Nottingham for private sale and appointed estate agents. It now has two further developments under construction: 11 houses in its home town of Sutton-in-Ashfield and 38 in Southwall.

Two further sites in Beeston and Etwall have been purchased, but construction has not yet started.

The company is investing £14m cash in its current development pipeline – money generated by a return to health of the core contracting business.

In a trading update today Nmcn reveals that it has started 2019 with strong growth in revenue and profitability. For the first quarter of 2019, Nmcn’s revenue increased by 27% to £94.4m and profitability by 170% to £1.75m. 

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Net margin for the three-month period was 1.85%, which the board described as a ‘return to a more satisfactory level’.

Revenue from the water business was up 41% to £70.2m and profitability doubled to £1.53m. 

The company’s built environment business has returned to profitability, making a £220,000 profit for the quarter instead of the £100,000 loss seen in the same period last year, mainly thanks to improvement in the previously loss-making telecom's unit. On the back of this, Nmcn has negotiated a one-year extension to its Virgin Media term contract.

The highways unit experienced a slow start to the year due to an up-front investment in the Highways England regional delivery partnership framework but no work on site starting until next year. 

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