North Midland's revenues grew 14.1% in 2010

4th Apr 2011 12:00

North Midland Construction, the provider of civil engineering, building, mechanical and electrical services, topped in-house expectations with its results for 2010.Revenue increased by 14.1% in 2010 to £164.5m from £144.2m in 2009, while profit before tax and exceptional items rose to £3.71m, an increase of 17.9% from 2009's £3.15m, when the company took an exceptional charge of £1.6m relating to a potential fine from the Office of Fair Trading (OFT). The company is still awaiting the result of the appeal against the OFT fine.According to the company's chairman: "It is very gratifying to report a result both in excess of the forecast and that of the previous year, in spite of both the challenging economic climate and the severe weather conditions experienced at both the start and the end of the year. Revenue increased by 14.1% to £164.5 million and profit before exceptional items and tax by 17.9% to £3.71 million. Progress was not uniform across the group and a breakdown of the result is now provided by division and subsidiary".Turning to the performance of its different business units, utilities revenue increased by 32.2% to £40.2 million and profitability by 4.1 % to £1.46 million.The building subsidiary continues to be the most affected by the continuing economic downturn and, therefore, returned a loss in excess of that forecasted of £0.57 million on revenues of £22.0 million. Revenue was 37% below budget due to poor weather at both the commencement and the end of the year and reduced progress on the major scheme in the current portfolio.In Nomenca, which is engaged in mechanical, electrical, instrumentation, control and automation activities, revenue declined by 12.8% to £37.6 million and profitability by 20% to £0.75 million.Net cash generated from operating activities declined to £5.574m pounds for the year ending on the 31 December 2010, from£ 11.685m generated the year before.AB