黑洞社区

North Midland Construction has said it made a 拢125,000 loss during its first quarter of trading.

In a trading statement issued today ahead of its annual general meeting, the group blamed the loss on closure costs resulting from the withdrawal from two loss making geographical areas on its Carillion Telent framework contract for British Telecom.

However revenue increased 21.3% to 拢54m.

The statement said: 鈥淭he BDUK (Broadband UK) programme of broadband rollout for Carillion Telent has proved to be unprofitable due to the mix of work being undertaken varying entirely from the model tendered.

鈥淭he losses sustained in the Lincolnshire and Shropshire areas were unsustainable and the decision was taken to terminate the contract in these areas.鈥�

, down from a 拢6m loss the previous year.

In today鈥檚 update the firm attributed the losses over the last two years to 鈥渢he resolution and completion of legacy contracts secured at the height of the recession鈥�.

Revenue is expected to exceed last year鈥檚 as tender opportunities have increased since the decisive election result this month, with the group鈥檚 order book standing at around 拢167m.

North Midland鈥檚 building division has split from the old building and civil engineering division and reinstated as a standalone division with a new management team.

The division delivered an operating profit of 拢11,000 for the first quarter of the year, on revenue which increased by 87.1% to 拢2.7m.