Mountfield Group plc Contracts Announcement Trading Update (5224B)
04 April 2013 - 5:00PM
UK Regulatory
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RNS Number : 5224B
Mountfield Group plc
04 April 2013
Mountfield Group Plc (the "Group")
Trading update
The Directors are pleased to announce that they expect the
Group's results for the year ended 31 December 2012, scheduled to
be released during the first half of May 2013, to show a return to
full-year profitability. Second half revenue and profitability were
however adversely impacted by issues encountered on a substantial
office construction contract, where Mountfield Building Group
Limited ("MBG"), as a sub-contractor, was unable to obtain full
recovery of the project costs.
The Directors are also pleased to announce that Connaught Access
Flooring ("Connaught"), the Group's specialist data centre flooring
company, is in final negotiations concerning a GBP3 million
contract to supply and fit the flooring for the first stage of a
major European data centre. This would represent the largest
contract undertaken by Connaught to date and is scheduled to be
completed this year. A further announcement will be made when
appropriate.
In addition, MBG has been awarded the second phase of the DCE
Birmingham project and a further contract extension is expected for
a data centre at Cody Park, Farnborough. Both of these contract
extensions, which have a combined value of approximately GBP2
million, are scheduled for completion in the current year, with
potential for MBG to secure further stages.
The Directors believe that the data centre sector will remain
buoyant for the foreseeable future, with the Group already involved
in negotiations on other new data centre construction and
refurbishment projects, both through MBG and Connaught.
The expansion of MBG's construction activities into new areas
continues to bear fruit and in addition to contracts for smaller
non-data centre works, negotiations are underway on other
construction projects, including an introduction from the Group's
joint venture partner, HUB (UK) Limited.
The Directors remain confident that the Group will perform
strongly in the current year.
Graham Read, Chief Executive Officer, commented:
"We are encouraged by the flow of new work we are experiencing,
and new contract tenders have increased markedly during the last
three months. I am particularly encouraged by Mountfield's
performance in winning follow-on work on multi-stage projects as
well as new projects."
Contacts:
Mountfield Group Plc
Peter Jay, Chairman
Graham Read, Chief Executive Officer +44 (0)1268 561 516
WH Ireland (Nominated Adviser)
Chris Fielding +44 (0)2072 201 666
Kreab Gavin Anderson
Robert Speed +44 (0)2070 741 800
This information is provided by RNS
The company news service from the London Stock Exchange
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