Firm issues another profit warning and promises delayed 2020 accounts next month

The scale of the problems facing new NMCN chief executive Lee Marks and would-be saviour Svella deepened today when the firm admitted that more problems at its building arm would send overall losses at the group 鈥渟ignificantly in excess鈥� of the 拢24m the firm had already warned investors about in May.

The latest blow was delivered in a stock exchange announcement following the listed civils contractor鈥檚 general meeting this morning.

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NMCN has again been forced to revise upwards the amount of money it will lose in 2020

NMCN, which has been labouring under a series of revisions to how much money it will lose when it finally publishes its 2020 accounts, said auditors had now discovered additional problems at its building arm.

It said: 鈥淪ubject to completion of the audit, the Group is now expecting to report overall underlying losses before tax significantly in excess of the 拢24m indicated in the announcement of 28 May.

鈥淭his will include both a material element which is attributable to 2019, and recognition within the 2020 Results (rather than in 2021鈥檚 financial results) of certain losses connected to the performance issues in the Group鈥檚 黑洞社区 business unit.鈥�

It added that it had still not signed off a refinancing agreement with Svella which was announced last month.

This is worth up to 拢29m which will see it hand a controlling stake to a three-year-old business that specialises in rescuing stricken firms.

Marks, who joined in May, added: 鈥淪ince the announcement on 21 June of the recapitalisation, Svella has worked very well alongside the Company to progress the transaction and remain committed to ensuring that the recapitalisation is completed at the earliest opportunity.鈥�

Last month the firm was forced to suspend its shares after confirming that it would miss the 30 June deadline for filing its 2020 accounts. These are now expected to be published some time next month.

This afternoon鈥檚 news means it is the fourth time the firm has had to revise its 2020 losses upwards since first announcing an original projected 拢15m loss last autumn.

The firm has been hobbled by two loss-making water jobs along with problems at its building arm.

In 2019, NMCN posted a pre-tax profit of 拢7.4m on turnover of 拢405m. It has already said that this year will be another loss-making one for the firm.

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