Mountfield Group plc Trading Update (2931X)
23 November 2017 - 6:00PM
UK Regulatory
TIDMMOGP
RNS Number : 2931X
Mountfield Group plc
23 November 2017
23 November 2017
Mountfield Group Plc (the "Group")
And its subsidiaries Connaught Access Flooring Limited
("Connaught" or "CAF") and Mountfield Building Group Limited
("MBG")
Trading Update
The Board of the Group, the AIM listed commercial flooring and
specialist construction services company, is pleased to provide a
trading update for the year to date.
Following a review by the Directors of the Group's second half
performance in 2017 and of the forecast revenue for the remainder
of the year from contracts already announced, they advise that the
net profit for the period is likely to exceed that achieved in both
the first half of the year to 30 June 2017 and the second half of
the year to 31 December 2016.
Since 30 June 2017, the Group has announced contract wins
totalling GBP8.92m as follows:
Announcement of Contract Announced Contract Value (GBP) Subsidiary Expected Completion
09/10/2017 4,000,000 CAF October 2018
05/10/2017 1,020,000 MBG February 2018
02/10/2017 1,650,000 MBG March 2018
06/09/2017 750,000 MBG January 2018
29/08/2017 1,500,000 CAF September 2018
The Directors are pleased to advise that work has commenced and
is on schedule for all of the contracts above.
Having successfully won a number of contracts in the second half
of 2017 which are expected to be completed in 2018, the Group will
enter 2018 on a stronger basis than this year. The Group's secured
order book stood at GBP6.58m at the beginning of 2017 and of this,
GBP6.08m had been won by CAF and GBP0.5m by MBG. It is expected the
value of Group's secured work at the beginning of 2018 will total
at least GBP8.1m. CAF will begin next year with secured turnover of
GBP6.0m and MBG GBP2.1m.
Since the restructuring in 2016, the Group's emphasis has been
on increasing margins and the minimisation of risk on contracts.
Since then, there has been a noticeable improvement to the Group's
working capital position as compared to previous years such that
the Company can undertake larger projects within its existing
financing facilities. Accordingly, the Directors do not require
additional equity funding from the market.
The Board's strategy is to prioritise margins over turnover and
the work won and under negotiation is at prices that accord with
it. The trading climate remains extremely active and both MBG and
CAF are involved in a number of tenders for work to be undertaken
in 2018 and the Board believes that this level of activity will
continue through to 2020 at least.
Andy Collins, MD of CAF and Group CEO said that:
"This has been a very good year for Mountfield and the repeat
orders prove our ability to successfully deliver large and complex
projects. As we near the year end, our secured work for 2018 is
significantly above this time last year and we hope that we can
continue to build on this year's success further."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Mountfield Group plc 01268 561 516
Peter Jay, Chairman
Andy Collins, Chief
Executive Officer
Cairn Financial Advisers
LLP 020 7213 0880
Jo Turner / Tony Rawlinson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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