Mountfield Group plc Trading Statement (3097O)
08 February 2016 - 6:00PM
UK Regulatory
TIDMMOGP
RNS Number : 3097O
Mountfield Group plc
08 February 2016
MOUNTFIELD GROUP PLC
Trading Statement
2015 was one of the most important for Mountfield Group Plc
("the Group") since it was listed in 2008, with Connaught Access
Flooring Limited ("CAF") taking a major step forward in its
development and reputation by winning its largest ever contract and
the year-end seeing the successful completion of restructuring of
Mountfield Group Limited ("MBG"), leaving it in a position where it
can now achieve sustainable profitability in 2016.
Connaught
The continued success of Connaught was an important feature of
the Group's performance in 2015 with the most notable achievement
being the winning of a large contract to supply and install
flooring to a major City HQ office building, one of the largest
flooring contracts placed during 2015. The contract continues into
2016 and is expected to lead to Connaught further widening its
customer base as it sets itself as a market leader in their
field.
Connaught is developing its range of services that it offers
into other fit out packages, such as whitewall partitioning and
external cladding, both in the UK and in mainland Europe.
Another very encouraging feature of the year for Connaught has
been the success of its newly created Special Works Division which
has been set up to provide a professional service in completing
smaller flooring contracts that Connaught had not previously
pursued. In its first year of operation the Division's turnover was
circa GBP2m and the Board expects this to increase further in
2016.
MBG
During the year it was decided that the Company would re-focus
its operational activities with the most important change being
that it would no longer undertake high risk fixed-price contracts.
As a result of this of this re-focus it has been able to reduce
monthly overhead by circa 40%.
The completion and settlement of the last two fixed-price legacy
projects, which commenced in 2013 and 2014, negatively affected
what would have otherwise been a profitable year.
The substantial improvement in the underlying business in 2015,
after excluding those legacy projects gives the Board confidence
that the business will be profitable going forward.
Outlook
Overall, the year was an important one for the Group and the
Board is confident that the steps it has taken will result in
significantly increased profitability.
The Board is confident that 2016 will see Connaught take
advantage of its reputation and standing it has created in the
commercial flooring market to expand its business into related
areas of fit-out work on significant contracts both here and in
Mainland Europe.
The forward order book for the year is in line with target with
turnover of GBP2m already secured. The outlook is for the year is
extremely good and the Company expects to participate in some of
the large fit-out contracts that are scheduled to go to tender
during the year.
Similarly, the Board believes that MBG will once again become a
significant contributor of profits within the Group following the
reduction in its overhead and the changing of its work profile
within which it has currently secured turnover of GBP2m.
Strategy
Whilst work in the data-centre sector remains a central part of
the Group's activities the Board has decided that in addition it
should concentrate on fit-out work and areas allied to it whilst
also continuing to offer refurbishment and fabric repair
services.
This strategy is being supported with the search for
acquisitions that will help strengthen the group's position in
these markets and initial discussions with potential targets have
already taken place.
The Board is currently engaged on two projects - firstly the
formal cancellation of the Loan Notes that appears in the Group's
balance sheet and then the future re-branding of the Group.
Contacts:
Mountfield Group PLC 01268 561 082
Andy Collins, Chief Executive
Officer
WH Ireland Limited 0207 220 1666
Paul Shackleton
James Bavister
This information is provided by RNS
The company news service from the London Stock Exchange
END
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