The provider of civil engineering, building, mechanical and electrical services to public and private organisations has been beset by a number problems in recent times, and most recently it was hit by cost overruns on some contracts and unfavourable settlements on others where clients had got into financial difficulties.
It posted a pretax profit of
Still, the company said problems still remain in its building and civil engineering unit, which has been completely restructured under new management, with the resolution of three legacy contracts. The division made an operating loss of
North Midland said progress is being made on the resolution of other contracts, but the timing is proving to be problematic.
Its NMCNomenca division had an "encouraging" first half, with operating profit increasing to
North Midland said its highways division suffered from a slower start to the year than originally forecast, with delays in anticipated expenditure on secured frameworks and in the award of a major project. Despite this, revenue for the unit rose to
"Secured revenue [for the highways division] this year currently stands at
Overall, North Midland said its return to profitability is "encouraging" and orders received to date to be executed this financial year stand at
However, it has decided not to pay an interim dividend, even though it paid an interim dividend of
"Maximum effort is being expended to bring the legacy contracts to conclusion and settlement, and whilst the group continues to trade profitably, there is still potential risk in the resolution of these legacy contracts," Chairman
"Accordingly, the directors feel that a prudent approach has to be adopted and feel, therefore, that the payment of an interim dividend is inappropriate," he added.
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