Mountfield Group plc Trading Update (2931X)

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RNS Number : 2931X

Mountfield Group plc

23 November 2017

23 November 2017

Mountfield Group Plc (the "Group")

And its subsidiaries Connaught Access Flooring Limited ("Connaught" or "CAF") and Mountfield Building Group Limited ("MBG")

Trading Update

The Board of the Group, the AIM listed commercial flooring and specialist construction services company, is pleased to provide a trading update for the year to date.

Following a review by the Directors of the Group's second half performance in 2017 and of the forecast revenue for the remainder of the year from contracts already announced, they advise that the net profit for the period is likely to exceed that achieved in both the first half of the year to 30 June 2017 and the second half of the year to 31 December 2016.

Since 30 June 2017, the Group has announced contract wins totalling GBP8.92m as follows:

 
 Announcement of Contract        Announced Contract Value (GBP)   Subsidiary   Expected Completion 
               09/10/2017                             4,000,000          CAF          October 2018 
               05/10/2017                             1,020,000          MBG         February 2018 
               02/10/2017                             1,650,000          MBG            March 2018 
               06/09/2017                               750,000          MBG          January 2018 
               29/08/2017                             1,500,000          CAF        September 2018 
 

The Directors are pleased to advise that work has commenced and is on schedule for all of the contracts above.

Having successfully won a number of contracts in the second half of 2017 which are expected to be completed in 2018, the Group will enter 2018 on a stronger basis than this year. The Group's secured order book stood at GBP6.58m at the beginning of 2017 and of this, GBP6.08m had been won by CAF and GBP0.5m by MBG. It is expected the value of Group's secured work at the beginning of 2018 will total at least GBP8.1m. CAF will begin next year with secured turnover of GBP6.0m and MBG GBP2.1m.

Since the restructuring in 2016, the Group's emphasis has been on increasing margins and the minimisation of risk on contracts. Since then, there has been a noticeable improvement to the Group's working capital position as compared to previous years such that the Company can undertake larger projects within its existing financing facilities. Accordingly, the Directors do not require additional equity funding from the market.

The Board's strategy is to prioritise margins over turnover and the work won and under negotiation is at prices that accord with it. The trading climate remains extremely active and both MBG and CAF are involved in a number of tenders for work to be undertaken in 2018 and the Board believes that this level of activity will continue through to 2020 at least.

Andy Collins, MD of CAF and Group CEO said that:

"This has been a very good year for Mountfield and the repeat orders prove our ability to successfully deliver large and complex projects. As we near the year end, our secured work for 2018 is significantly above this time last year and we hope that we can continue to build on this year's success further."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, please contact:

 
 Mountfield Group plc          01268 561 516 
 Peter Jay, Chairman 
 Andy Collins, Chief 
  Executive Officer 
 
 Cairn Financial Advisers 
  LLP                          020 7213 0880 
 Jo Turner / Tony Rawlinson 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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November 23, 2017 02:00 ET (07:00 GMT)