North Midland Construction revenues top expectations

North Midland Construction's new contract wins have set revenue on course to beat full-year expectations.

Full-year revenue is now expected to fall between £340m and £345m, an upgrade from last year’s revenue of £291.8m as well as the company’s previous target for revenue of approximately £308m.

Since the publication of interim results in August the London-listed company has won a number of contracts, including a £55.5m design and build scheme for the department for infrastructure of the State of Jersey and a £225m civil engineering K7 capital works framework contract for South West Water.

John Homer, chief executive of North Midland Construction, said: "We are delighted that the significant improvement that we reported in August has continued, as we had expected, into the second half of our financial year. The outlook for our future trading remains buoyant. The benefit of these significant contract wins will continue to feed quality work into the forward order book."

The new contracts are expected to provide £40m in revenue per year for up to five years.

Consequently, the outfit’s order book for delivery in the new year is 9% than 2018’s order book was at this point last year, rising to £222m.

"Our focus on cash management is performing well and providing positive cash flows for investment opportunities. Our people and our culture will remain our overarching differentiator for further success. We will continue to invest and drive progress in this area," said Homer.

North Midland Construction’s shares were up 11.78% at 486.25p at 1040 BST.