Mountfield Group plc Trading Statement (2906R)
29 June 2020 - 4:00PM
UK Regulatory
TIDMMOGP
RNS Number : 2906R
Mountfield Group plc
29 June 2020
29 June 2020
Mountfield Group Plc ("Group")
and its Subsidiaries, Connaught Access Flooring Limited ("CAF")
and Mountfield Building Group Limited ("MBG")
Trading Statement
Mountfield Group Plc, the AIM quoted commercial flooring and
specialist construction company, provides the following trading
update with regard to the manner in which its business had been
affected by COVID-19.
In the trading statement of 6 April 2020, the Group announced
that whilst CAF had not had a number of sites closed, MBG had been
substantially affected by COVID-19 in that its clients had
temporarily closed most of the sites on which MBG was due to
provide services.
The Group is pleased to announce that the majority of its sites
have now been re-opened, albeit that they are now having to operate
in accordance with the current COVID-19 construction industry and
Government guidelines.
COVID-19 has also impacted on the production the Group's 2019
accounts. Due to COVID-19 related difficulties affecting the
Group's businesses and the audit process itself, the start of the
audit had to be delayed. As a result of resource constraints during
the period for both the Directors and the auditors during this
difficult period and the additional complexities caused by having
to perform work remotely, the Company will not be able to complete
the annual audit prior to 30 June 2020. The London Stock Exchange
and the Registrar of Companies have approved a delay to the
publication and filing of the Company's audited annual accounts for
the financial year ended 31 December 2019 by three months to 30
September 2020 in line with measures introduced for companies
affected by the current pandemic. The Company confirms that it now
expects to release the Annual Report and audited accounts by early
August together with the date of the AGM.
Given this delay, the Company is today providing shareholders
with an unaudited update on trading of the Group for the year ended
31 December 2019, details of which are set out below:
-- Turnover : GBP21m (2018: GBP16.2m)
-- Operating profit : GBP850,852 (2018: GBP1,129,173)
-- Net cash position : GBP802,885 (2017: GBP677,747)
-- Gross Margin : 10.42% (2018: 15.5%)
In the announcement of 6 April 2020, the Board stated that the
results for 2019 were expected to be similar to those for 2018.
However, it is now clear that a substantial contract that has
recently been completed, resulted in a loss on the project in the
region of GBP320,000. The element of this that is not COVID-19
related should be reflected in the accounts to 31 December 2019 as
an onerous contract in accordance with IAS 37 and the above figures
reflect the Board's current estimate of the position.
As a result of the deteriorating business climate, some of the
larger contracts were negotiated at significantly lower margins
than originally anticipated, something which the Board expects to
continue in the current environment.
The Board is hopeful that contracts that the Group expected to
sign and those that are currently being tendered for will be
resurrected in Q3 and Q4 of 2020 and that this will provide a good
flow of work for Q3 and beyond.
The value of the Group's secured order book currently stands at
approximately GBP9.3m, a figure that is somewhat lower than that
recorded at the same point in 2019. The Group is working within its
banking facilities and the cash flow of the businesses continues to
be closely monitored and controlled.
The Group's Board is encouraged by the re-opening of many of its
clients' sites and the determination of many of its clients to
restore activity levels to their pre-COVID-19 levels. It is,
however, too early to predict in detail what the impact of COVID-19
will be on the Group and, as a result, the Board is unable
anticipate what the Group will achieve for the year to 31 December
2020.As a result of the site closures in the early part of 2020,
however, it is almost certain that the Group's turnover and profits
will be lower in this year than in recent years.
The Group will keep the situation under review and update the
market in due course.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Connaught Access Flooring
Limited 01245 237527
Peter Jay, Chairman 07500 558235
Cairn Financial Advisers
LLP 020 7213 0880
Jo Turner / Sandy Jamieson
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should", "envisage", "estimate", "intend", "may", "plan",
"potentially", "expect", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements re ect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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