North Midland Construction makes profit despite slow start to year

19th May 2014 11:26

North Midland Construction (NMC) said a recovery in the building industry helped it to move back into the black despite a lacklustre start to the first quarter.NMC said first quarter pre-tax profit was £234,000 against a loss of £105,000 a year earlier as prospects for the construction industry in general started to improve.The first quarter started slowly, particularly in the company's highways & utilities division, and overall group revenue for the period declined 1.5% to £44.5m against a year ago.Secured workload expected to be completed this year is about £160m against £140m last time, based on firm orders placed under framework contracts, but those orders are set to rise.The group's water business traded strongly and its restructured building and civil engineering division did much better on lower volumes, although resolution of two problematic contracts that caused a loss last year remain outstanding. "The board is cautiously optimistic that the improved performance can be maintained," NMC said in a trading update.Shares rose 3p or 2.5% to 124.5p at 11:27 in London.PW