North Midland Construction has published its 2010 preliminary results which show that revenue and pre-tax profit both grew, while its building services division suffered.
The firm is undertaking a thorough review of its building division which saw revenue of £22 million, a loss of £570,000 on its forecast performance.
In the 2009 accounts an exceptional item was included for the firm’s potential OFT fine and associated costs of £1.5m. An appeal was made against the fine and to date the result of that appeal has not been announced.
Chairman Robert Moyle said: “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 per cent to £164.5m and profit before exceptional items and tax by 17.9 per cent to £3.71m.”
The firm also announced good performances in its utility and highways divisions, where revenue increased by 32.2 per cent to £40.2m and by 32.3 per cent to £13.5m respectively.
The firm said: “Margins remain positive, but at an extremely low level, and this coupled with the low revenue has contributed to the loss. A thorough review of the business has now been undertaken and further overhead reduction instigated along with a revised marketing strategy.”