NMCN Nmcn Plc

TIDMNMD

RNS Number : 9624E

North Midland Construction PLC

24 October 2018

North Midland Construction PLC

Trading update

24 October 2018

This disclosure is made in accordance with Article 19 of the EU Market Abuse Regulation 596/2014.

North Midland Construction PLC

("North Midland" or the "Group" or the "Company")

Trading Update, Contract wins and New Company Identity

Trading update 2018

The Board is pleased to announce that the progress reported, on 9 August 2018, with our Interim Results, for the six months ended 30 June 2018, is continuing into the second half of the financial year.

0n 25 January 2018, we announced that the order book for 2018 stood at approximately "GBP257M which is just under 80% of the Directors' revenue expectations for the current year." with targeted "net margins of between 1.5 and 2.0 per cent for the current year".

The Directors are now confident that revenue for the current year will exceed these full year expectations and anticipate revenue being circa GBP340 - GBP345 million, with net margins within the anticipated range previously set out above, but more specifically between 1.7 - 1.8%.

Contract wins and Order Book

In addition, the Board is delighted to announce further project and framework wins since the Interim Results were announced. These include a GBP55.5m design and build scheme at Bellozanne Sewage Treatment Works for the Department for Infrastructure of the State of Jersey under a joint venture agreement with Doosan Enpure Ltd and the GBP225m Civil Engineering K7 Capital Works Framework Contract for South West Water.

Work on this project and framework commences over the forthcoming months and will primarily benefit revenue in 2019 and beyond. Our Order book for delivery in 2019 now stands at GBP222m (Oct 2017, for 2018: GBP202m) and these new awards are anticipated to provide additional revenue of circa GBP40 million per annum when fully underway for their contracted duration ( circa 4 - 5 years).

New single Company identity and brand

Our brand is transitioning for the future and we are currently working on the launch of a new single identity and brand for the whole Group to be released on 26(th) November 2018. The new identity will bring the Group together under one name, one logo and one brand.

Our new identity will provide a platform for continued growth and help us to attract and retain the right people.

John Homer, Chief Executive of North Midland Construction, commented:

"We are delighted that the significant improvement that we reported in August has continued, as we had expected, into the second half of our financial year. The outlook for our future trading remains buoyant. The benefit of these significant contract wins will continue to feed quality work into the forward order book. Our focus on cash management is performing well and providing positive cash flows for investment opportunities.

Our people and our culture will remain our overarching differentiator for further success. We will continue to invest and drive progress in this area."

Enquiries

   North Midland Construction PLC                     01623 515 008 

John Homer, Chief Executive

Dan Taylor, Finance Director

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