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North Midland predicts £250k loss

North Midland Construction is expecting to post a £250,000 loss for the year after experiencing problems on one of its contacts.

In a statement to the City, the firm didn’t identify which project was to blame, but said economic conditions remained challenging, with a reduced level of tendering opportunities and extreme pressure on margins.

North Midland mechanical and electrical subsidiary Nomenca is likely to be affected by the slow commencement of the AMP5 programme with revenue and profit both forecasted to fall below the previous year.

The highways division reported a satisfactory workload for the three months to 30 September 2010, with both revenue and profit expected to exceed that of the same period last year.

The firm said its civil engineering division needed to secure more workload for the following year, and it had recently won two contracts worth £3.6 million in the power sector.

“We continue to rigorously control costs and maintain a flexible approach to changing market conditions,” said chairman and chief executive Robert Moyle.

“We are also still waiting to hear the result of the OFT fine appeal. With the current order book for 2011 standing at £89m, the board is confident the management’s forecasts for the year will be achieved.”

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