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Sat April 20 2019

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Water works lift Nmcn out of telecoms blues

28 Mar Construction contractor Nmcn grew revenue in 2018 by 17% and saw its profits either soar or dive, depending on which accountant you prefer.

Chief executive John Homer
Chief executive John Homer

Nmcn, formerly North Midland Construction, generate revenue of £340m in 2018, up from £292m the previous year, and made a pre-tax profit of £6.0m.

The 2017 annual report shows a pre-tax profit of just £1.0m for that year. However, a new accounting protocol has been introduced and many of the losses incurred on projects in 2017 have now been written in to previous year’s accounts instead. The restated 2017 accounts show a pre-tax profit of £9.1m for that year, meaning that 2018’s profit was down by a third instead of up 500%.

However, the company increased its year end cash balance by 96% to £33.35m and the £320m year-end order book was up 7% on a year before.

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Nmcn makes most of its money in the water sector; this contributed £245m revenue in 2018 (43% up on 2017) and £8.1m operating profit.

The company’s built environment business, by contrast made an operating loss of £95,000 on £96m revenue. This was down to a loss-making telecoms contract costing the company £2.8m durign the year. Nmcn has been a BT approved contractor for more than 15 years. The framework is due to expire in April 2019.

Chief executive John Homer said: “Our results in 2018 demonstrate the achievements across the business against the targets in our strategic plan and provide a solid platform for further progress. There are positive signs of continued opportunities for us to grow in our chosen market sectors. Our forward order book is just over 90% of anticipated revenue for the year ahead with a healthy pipeline of future opportunities available.”

MPU

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