Nth.Mid.Cons Share Discussion Threads

[edmundshaw] 27/2/2009 16:39

No idea, over 50% up. Either someone very keen or a predator? The price can go a bit haywire on small transactions due to the illiquidity, so may be nothing much.

I sold nearly 40% at an average a bit under 400p. I'd also like to add back, but would prefer some news first... well done on 100p!

[eclair] 27/2/2009 16:12

Any idea what is happening here? I've been a long term holder for the good dividends, but failed to take advantage and sell when they reached £5, watching them tumble all the way down to their recent lows. The only silver lining is that I recently topped up at £1, and am very pleasantly surprised by this rapid rise. Any idea what it is down to?

[edmundshaw] 24/2/2009 15:12

From 24th December 2008 (sorry a bit late!)

Special Projects win more work in Leeds

December 2008

North Midland Construction plc contracted to improve Leeds City Centre road junctions.

The Highways and Special Projects division of leading civil engineering and building specialists North Midland Construction plc (NMC) has secured three contracts in Leeds for Leeds City Council at a combined value of £760,000.

The first is a highways project at Savins Mills Gyratory in Kirkstall. Located on the main A65 Kirkstall Road arterial route in Leeds, this will improve junctions and provide new traffic and pedestrian control.

The second scheme involves improvements to the Seacroft footbridge on Leeds Ring Road which involves pier protection, waterproofing and painting to extend the life of the bridge.

Lastly, improvement works are planned at Swinnow Bridge, located on the Stanningley Bypass. These include concrete repair and protection works to strengthen the bridge.

Geoff Poyzer, executive director of Special Projects at NMC, said: "We are handling increased volumes of work in Leeds, particularly highways projects which draws on our extensive experience in the sector. We look forward to continuing to build on our long successful relationship with Leeds City Council."

For further information contact:

Mike Thornett 01623 447781

[edmundshaw] 14/11/2008 08:39

IMS today looks OK to me in the current environment. Nice to see it come out before the market opens! :-)

"Revenue and profit will fall short of 2007, but will be in line with the reduced revised forecasts." and "The problematical contract in East Anglia, undertaken by the Utilities Division, is now complete" feels in line.

A positive, "The recently opened Scottish operation is performing well", but a negative about delays in payments, impacting cashflow. Quite a reasonable order book, however.

[edmundshaw] 15/5/2008 16:12

IMS now issued.

North Midland Building was my concern (other than worries about the extent of the OFT investigation), and it appears this is the only division that needs to get contracts to keep fully occupied. But it sounds as if this is a pipeline issue - there ispresumably work enough at the moment.

Excellent news that the utilities division is back on course.

I hope they will be rational with the loss-making contracts. There is a cost to not getting paid for a lengthy period (unless they go to court and get interest too), and a cost to fighting one's corner. Both sides need to consider whether they are to work together again, and if so on what terms. It all muddies the waters from an investment standpoint. However, the improved offer should show up positively in the next accounts.

I am glad to hear they are able to fight the OFT. Some of the OFT allegations with other companies have been said to be rather speculative. Without a proper case, as is evident in at least some instances due to the dropping of allegations, I'm not sure what the OFT thinks it is about...

Anyhow, the statement is pretty much in line with my expectations. Provided the economy stays reasonably robust, I'd expect all except perhaps the building division to keep profitable. Any shallow downturn I can sit out; so long as the company stays well run and keeps growing organically, this should remain a good long term investment IMHO.

[edmundshaw] 10/3/2008 08:28

If you're interested and concerned, I'd phone the company if I were you. The FD, Mike Garratt is very approachable.

[matt] 10/3/2008 08:05

There have been four problem contracts now if I read it right. I wonder if there is any pattern it what went wrong?

"At the interims, the Company reported that the results for the full year would be below initial expectations following problems on two contracts [FROM INTS: "The problem contracts referred to above relate in one case to the Civil Engineering division and in the other to the Utilities division."]. Since then, the Company has experienced further losses on two contracts within the civil engineering division."

[edmundshaw] 10/3/2008 07:59

That should become clearer on April 4th, when I expect updates on the losses.

Both the contract losses were exceptional, and in the past that kind of problem has been rare. In the long term, this should be forgotten as reults will speak for themselves, IMO. The company has a good track record over the years.

One has to bear in mind that, in this type of business, there is often some degree of risk when tendering for any contract. For example, exceptional underground conditions and exceptional bad weather cannot be fully factored into the quotes. Even when clauses are in place, some clients can be more reluctant than others to stump up the additional cash.

[matt] 10/3/2008 07:48

Still too much uncertainty. No indication of scale of further losses.

[edmundshaw] 10/3/2008 07:40

According to the company, results expected on 4th April.

[myopia] 14/12/2007 21:15

I suppose they're getting towards a value now where they might make an intersting recovery play - assuming they can get their act together for next financial year.

[jonwig] 14/12/2007 11:53

Far-sighted of you, myopia (post #192):

At the interims, the Company reported that the results for the full year would
be below initial expectations following problems on two contracts. Since then,
the Company has experienced further losses on two contracts within the civil
engineering division. The final outcome of these contracts is uncertain, but the
problems are isolated and non-recurring. As a result, the outcome for the full
year is now expected to deliver a profit below management expectations.

It looks as though others were aware, as the share price has been very weak for a few days.

Not a holder, but on watchlist.

[edmundshaw] 10/12/2007 15:23

Due to the great share price upside since 2002, I have enough of these - even at these levels, though they are cheap, I can see other cheap shares and I'd rather be more diversified. Much lower though and I will probably add to my holding!

Director buying was positive. They are still hiring if you look at the web site. They have no debt problem. And there is good visibility and continuity for some divisions, for example up to around 2010 in the utilities division (that nice Severn Trent contract, for example). They are also a high quality, growing company.

I shall hold on for the long term. Never know when a good trading statement or some bottom fishing will push up the price. On the other hand, some aspects of UK construction are looking weaker in the shorter term, so we may have to be patient...

All IMHO & DYOR.

[myopia] 10/12/2007 14:20

could be another warning in the offing. Perhaps they underestimated losses form the contracts they mentioned in the last one? Warnings tend not to be isolated and the market usually gets wind of them before the RNS comes out.

[dickstertwo] 10/12/2007 14:14

Scarey !! I just picked up 1000 at 240 - thought from past experience there would have been more of a bounce -just a 5p correction so far.

[edmundshaw] 18/11/2007 09:27

I see the SOUTH Midlands construction company (Irish based) is folding. Not really relevant, or a negative though in my humble one...



It puts an interesting light on property in Ireland. Looked at the company, and I have to say they are nothing like ours: Poor safety record, little assets, poor and somewhat illiterate web site, and from the press it appears they were buying up land for development in an overheated Irish property market.

NMC on the other hand has a great safety record, excellent web site, good assets, profitability and visibility, and as far as I know no direct exposure to land banks. Quality will out in the end! :-)

[edmundshaw] 13/9/2007 12:26

Big dip for such a small hiccough in my opinion. I shall hold on...

[ajmac] 05/9/2007 13:42

Was going to buy, as this must be a good opportunity. But how can you make money from a share with a spread and tax of 10% !! that leaves me very much third in the row for any profit.

[mick33] 20/8/2007 17:37

Robbie burns back in today 1000 bought @ 4.70 - results any day now...

[what is a login ?] 13/4/2007 12:46

Robbie Burns has tipped this one on the ADVFN home page for Easter. Right under everyone's nose!
A quick glance at the results and statement suggests a sensible, well-run, conscientious company. I have no funds available at the moment but I think I may return later. Thanks to Edmundshaw and Jeff H for relevant posts.

[jeff h] 10/4/2007 21:48

There's a write up in this Friday's IC...should be positive I would
have thought.

[jeff h] 03/4/2007 19:38

Isn't it 1 x 4,000 Buy and 1 x Sell of 4,000?

...may well feature in Thursday's IC.

[edmundshaw] 03/4/2007 12:35

Looks very much like a couple of directors using part of their CGT allowance for the year - just before the end of the tax year and after the results.

Shame the shares are so illiquid that these puny sales actually moved the price south... or so I assume.

Should have no effect in the long term, though.

[jeff h] 30/3/2007 09:00

...good point about institutions climbing aboard, though with the shares
being tightly held it will be difficult to acquire any meaningful amounts
...all the better for current holders then!