'Challenging' times for North Midland
Nottinghamshire-based North Midland Building says it expects to make a £250,000 loss this year on one contract. The revelation came in an interim management statement where the company said the "current economic climate remains challenging".
The statement, covering the period from 1 July 2010 to 30 September 2010, said there has been a "reduced level of tendering opportunities and extremely competitive margins".
But it adds: "The effect of the recent public sector spending review has still to be determined, however, profitability for the group to the end of the third quarter is in excess of the comparable period last year, on increased revenues."
However, the company admits to "experiencing problems on one particular contract" and is expected to "deliver a loss of circa £250k for the year".
It said the final result of its subsidiary, Nomenca Limited, will be affected by the "slow commencement of the AMP5 programme by the water companies". Both forecasted revenue and profit are due to fall below the previous year.
It said its highways division has a "satisfactory workload" but its civil engineering division "to secure more workload" though it has clinched two contracts worth £3.6m in the power sector.
The company said the current order book for 2011 stands at £89m and the board is confident that the management's forecasts for the year will be achieved.
