North Midland Construction has reported a 4.3 per cent rise in revenue in its latest financial results following an extensive restructure of its telecommunications division.
The group posted revenue of £135m for the six months to 30 June 2017, up from £129.6m for the same period of 2016.
Profit before tax increased to £1.22m for the half-year from £0.51m in H1 2016, which North Midland chief executive John Homer said was mainly due to a turnaround in the group’s telecoms business.
The division returned a £32,000 profit in the latest half-year results, compared with a £1.56m loss a year earlier.
Speaking to Construction News, Mr Homer said the telecoms sector had “massive” potential for contractors due to the volume of work needed to install super-fast broadband.
“It comes down to the ability of the construction industry to deliver that [digital infrastructure]… it is a mammoth task,” he said, adding that the “future looks good for that sector”.
In an exclusive interview with CN earlier this month, Mr Homer revealed the group is aiming to reach a 5 per cent margin in the next five years.
Mr Homer outlined the group’s plans to raise operating margin to 3 per cent by 2019 and 5 per cent by 2021, having hit 0.9 per cent in 2016.
The chief executive has also targeted doubling turnover to £500m over the next five years, after posting £250m in 2016.