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Profits warning from NMC

19 Nov 12 Despite a significant reduction in losses in its building & civil engineering division, North Midland Construction (NMC) is still failing to meets its management’s expectations.

In a trading update this morning, NMC said that year-end group revenue and profit would both be slightly below management expectations.

For the July-September quarter, the group managed a small pre-tax on revenue of £38.0m.  Revenue and profitability continue to be affected by a reduction in public expenditure and a major downturn in activity within the telecommunications sector, the company said.

Losses within the building & civil engineering division have been significantly reduced and the major loss-making contract will be completed in early 2013. 

NMCNomenca, the water business, is performing ahead of management expectations and profits are ahead of last year.

However, the highways division has been affected both by budget cuts and by delays in the start of secured contracts.  The division remains profitable, but both profit and revenue will be below that of last year.

The utilities division has also been hit by a significant downturn in expenditure by the telecom companies and has had to be reorganised and downsized. “Losses continue to be incurred, but on a reduced scale,” the company said.

On the plus side, the company continues to operate well within its bank facilities and the order book for 2013 stands at £90m, well ahead of the £70m this time last year.

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