Thursday, November 26, 2020

Revenue and profit up at nmcn as firm made “good start to 2020, prior to the COVID-19 pandemic”

nmcn, the Nottinghamshire-based engineering and construction company, “made a good start to 2020, prior to the COVID-19 pandemic,” according to a first quarter trading update.

In the first quarter, revenue increased by 3.7% to £97.9 million and pre-tax profit was up by 5.9% to £1.8 million.

Revenue overall for Built Environment increased by £6.8 million to £31.0 million (Q1 2019: £24.2 million). The segment generated profits of £0.2 million (Q1 2019: £0.2 million).

Across the other business units, the impact of the severe weather during the period on Highways and Building, along with the initial impact of COVID-19 on the Building business unit and the investment in the new Power & Industrial team resulted in a small contribution.

The Water business continued to perform strongly despite a reduction in revenue due to the AMP transition year for many of the segment’s customers. Q1 revenues were down by 4.7% to £66.9 million (Q1 2019: £70.2 million), but despite this, profitability increased to £1.6 million (Q1 2019: £1.5 million).

During April and May, however, the Group’s activities represented “in excess of 75% of the workload [it] would anticipate in a more normal operating environment.” The firm noted that operations in the Built Environment business units have been the more disrupted with a temporary cessation of works at most sites.

John Homer, Chief Executive, said: “We had a good start to 2020 which is reflected in the performance of the business in the first quarter prior to the COVID-19 lockdown at the end of March. Throughout the lockdown we have remained operational where it is safe to do so and complied with all the relevant guidelines.

“I am truly proud of the conduct of all our people in this period of unprecedented challenges. They have responded with flexibility and commitment, reflecting the culture of nmcn that has evolved over many years.

“Challenges remain, but our order intake, balance sheet and positive cash position remain healthy. The non-discretionary spend required in our core markets will hold steady in any economic downturn and we expect to be able to benefit from this in future trading.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemic having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.






Latest news

BAM starts work on three new East Midlands schools

BAM Construction has commenced work on three new schools in the East Midlands, having been appointed to the schemes by the Department for Education...

Accrol completes £41.8m acquisition of Leicester Tissue Company

Accrol Group has completed the £41.8m acquisition of Leicester Tissue Company (LTC), in a deal led by Zeus Capital. Zeus Capital acted as Nominated Adviser...

Coronavirus testing sees revenues rise at Nottingham laboratory services firm

Revenues at Nottingham-based SourceBio International, the provider of integrated laboratory services and products, have risen as a result of Coronavirus testing. Since May 2020, SourceBio...

Gallagher appoints Gareth Parry-Jones to lead the Midlands

Insurance, risk management and consulting firm Gallagher has appointed Gareth Parry-Jones Regional Managing Director of the Midlands. In his new role, Gareth is responsible for...

Fundraising campaign sees PALLITE® raise £1.1m

Northamptonshire-based PALLITE®, a designer and manufacturer of sustainable, paper honeycomb board packaging products used in the logistics industry, has raised over £1.1million on Crowdcube. PALLITE®...

Related news

IoD appoints trio of Ambassadors in Derbyshire and Nottinghamshire

The Institute of Directors has appointed a trio of Ambassadors to its Derbyshire and Nottinghamshire team. Peter Wingrove joins as Mental Health and Wellbeing Ambassador,...

BAM starts work on three new East Midlands schools

BAM Construction has commenced work on three new schools in the East Midlands, having been appointed to the schemes by the Department for Education...

Accrol completes £41.8m acquisition of Leicester Tissue Company

Accrol Group has completed the £41.8m acquisition of Leicester Tissue Company (LTC), in a deal led by Zeus Capital. Zeus Capital acted as Nominated Adviser...

Coronavirus testing sees revenues rise at Nottingham laboratory services firm

Revenues at Nottingham-based SourceBio International, the provider of integrated laboratory services and products, have risen as a result of Coronavirus testing. Since May 2020, SourceBio...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close