Mountfield Group profits double as subsidiaries rake in contracts

Construction support and property services firm Mountfield Group reported on Monday that its profit doubled in 2017 as a result of strong revenue growth and reduced costs.

For the year ended 31 December, the AIM-traded company’s pretax profits increased 95% to £0.864m, while revenue jumped from £9.6m to £12.7m.

A modest 7% drop in administrative expenses to £1.3m also assisted the increase in company’s profits.

As of 31 December, the company’s net cash position was £0.52m, compared to -£20,247 at the same point the previous year.

The group’s order book stands at £16.2m, with subsidiaries Connaught Access Flooring Limited (CAF) and Mountfield Building Group (MBG) securing contracts worth a total of £8.5m and £7.7m respectively.

Peter Jay, chairman of Mountfield Group, said: "The board believes that both CAF and MBG are now, with the benefit of low cost structures, excellent client bases and record high levels of secured work able to perform strongly on a regular and sustainable basis."

The company said that the year has seen both subsidiary companies trade strongly and increase their profitability.

The outlook for CAF is positive due to a high demand for large commercial flooring contracts and the companies leading position in the market, while MBG is set to pursue low risk contracts according to Mountfield Group.

As of 1456 BST, Mountfield Group’s shares were up 5.13% at 2.05p.