Nth.Mid.Cons Share Discussion Threads

[pugugly] 21/2/2014 08:28

Horrible trading update - Main worry is whether they have kitchen sinked or are tthere more horrors to emerge.

Given the apparent management failures to control costs and assess quality of contracts one could suspect more problems are hidden and will come out later )imo etc) ntav looked interesting but still trying to work out by how much it has been eroded.

[eclair] 01/11/2013 10:06

Just had a look at Faraday's web site. At £350 - £2000 a year for their various products, I think I'll continue to do my own research for a while.

[johnsx] 30/10/2013 14:50

used Faraday research for a while - found them quite useful, some good ones from them like MOS, SCLP, PTO. Worth a look.

[bench2] 30/10/2013 09:47

Who is Faraday ?

[eclair] 30/10/2013 08:17

--> Tony

Can you summarise what it says? 9 trades in the first 10 mins - you don't normally get this many in a week with NMD!

Happy days

[pugugly] 30/10/2013 07:58

tony773. You have mail

[tony773] 30/10/2013 07:31

Faraday, have just sent out a tip for this one

[eclair] 12/9/2013 16:27

Sorry, not heard that one.

[jeff h] 12/9/2013 14:35

I used to own these several years ago. In recent times they seem to have fallen foul of the very low margin environment on work available.

Seem to recall reading a story that they had a problem contract with a rock star that was costing them an arm and a leg, maybe eclair knows more about it.

[jeff h] 12/9/2013 14:27

CJohn from their Annual Report:-

(e) Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of
activity at the balance sheet date. This is normally measured by the proportion that contract costs incurred for work performed to date bear to the
estimated total contract costs. Variations in contract work, claims and incentive payments are included to the extent that it is probable that they will result in revenue and that they are capable of being reliably measured.

Where the income of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that it
is probable will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.

Where it is anticipated that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately. The
recoverable sales value of work carried out at the balance sheet date, which has not been applied for, is recognised as contract balances in the
balance sheet.

Amounts due from construction contract customers included in trade receivables represents unpaid applications both certified and uncertified.
The cost incurred in relation to work completed at the balance sheet date on construction contracts is recognised in trade payables. In addition, any
payments received in advance of completing the work are also recognised in trade payables.

[eclair] 12/9/2013 13:15

Hi CJohn, I'm no accountant so can't help with your question I'm afraid. I've been holding these since last century! Probably the world's most boring stock - very few trades, no BB comment, but they pay a nice dividend. As the economy recovers, I'm sure NMDs share price will too - they've survived the recession and seemed to have suffered because of a few serious contract overruns, but they are quite well diversified within the industry.

The share price fall seems overdone to me and I did top up following the further fall on their recent results.

[cjohn] 07/9/2013 13:05

Hello, if there's anyone around, would they help me with the very large ítem "construction contracts" on the balance sheet in current assets. Could someone explain to me what exactly this means? How do theya rrive at this figure?

[edmundshaw] 18/5/2010 09:39

All divisions within the PLC are trading profitably ... The building subsidiary, however, has ... returned a small loss.

Gotta chuckle :)

Agree nice news, have held these a long time (though sold 33% around 420p: construction is cyclical, as are its share prices). With the yield, underlying growth and watchful management, I see no reason to budge. Though I'd like those sold shares back at some point.

The AMP5 framework for Severn Trent Water was nice news at the finals last month. I'm hoping there is more good news on the AMP5 front.

[eclair] 18/5/2010 08:47

Well, this little gem seems to be weathering the storm:

Interim Management Statement



North Midland Construction PLC is today issuing its Interim Management Statement
covering the period between 1 January 2010 and today, as required by the UK
Listing Authority's Disclosure and Transparency Rules.

It is gratifying to report that despite the continuing very difficult trading
conditions within the construction sector, Group profitability before tax has
increased by 32.6% to GBP0.6million for the first quarter, on revenue increased
by 6.7% to GBP38.0million, compared with the previous year. Secured workload
that will be completed within the current financial year stands presently at
GBP154million.

All divisions within the PLC are trading profitably, with an enhanced
performance from the utilities division. The Nomenca subsidiary has delivered a
positive performance, with profitability reduced to GBP0.1million from
GBP0.15million for the quarter. The building subsidiary, however, has, due to
the extremely competitive margins prevailing, returned a small loss of
GBP21,000. Confidence is high that this situation will be rectified by the year
end.

[edmundshaw] 22/9/2009 17:34

Given the wafer thin margins in this industry, I find it hard to believe that cover pricing was very effective, if present, at least here.

The fine, around 75% of a year's profits for the entire company, based on just 2 supposed instances presumably in just one of the divisions, seems well over the top to me, if as the OFT says the practice was rife and many instances by competitors will have gone unpunished.

Also, the carrot of knocking around 45% off the fine if you just accept it and pay it rather than stand up for yourself, seems likely to lead to plea bargaining even by the innocent just so they can get on with their business. Hardly fair by the OFT IMO, though hard to be sure without detailed facts.

[edmundshaw] 22/9/2009 10:17

Ouch.

Where is the RNS?

I see ISG (c £5m), Balfour Beatty £5.2m, Carillion £5.3m, Connaught £5.5m, Galliford Try £8.3m and Kier Group £17.9m have been fined. At least 3 of these have RNSed...

Could have halved it with full co-operation, but always maintained innocence...

[aderemi] 22/9/2009 10:09

North Midland Construction plc was fined £1,543,813 (p4)

[edmundshaw] 08/4/2009 14:37

Given the economy and housing market, these results look at first glance quite excellent!

Divi maintained, as will be the grin on my face! :-)

Off to look at the fine print now...

[edmundshaw] 25/3/2009 21:40

Nice to have 2 MMs at least at the moment. :)

Not sure when that happened, but the spread is more reasonable now, which will not hurt us.

[hspickering1] 25/3/2009 10:18

Another jump in the share price. What is the cause this time?

[willbuy] 13/3/2009 11:12

Even if the margins are tight it has to be good news to have approx £800 million of work for the future and this company certainly has a good track record in this field.
The company must have performed well to have been awarded these substantial framework contracts and I am optimistic for the future profits and dividends.

[eclair] 11/3/2009 09:02

So this would seem to be the reason for the recent rise. Given NMD's long relationship with Severn Trent, I'm not sure how much this is business as usual, and therefore wouldn't expect to see much of a further rise, or whether it is sufficient to return the co to previous levels of profitability.

[edmundshaw] 10/3/2009 16:34

Big £700m AMP5+6 contract news today :-)

...published at 3.23pm! :-(

[edmundshaw] 05/3/2009 13:22

Trades mostly don't get reported for NMC. No idea why not...

[hspickering1] 05/3/2009 10:42

Can anyone explain why the share price has jumped from 95p to 170p (and is now 155p) during the last week. Yjere has been no announcement from the company, and there appears to have been no share trading at all during this time.