Mountfield mulls structural changes amid ongoing Covid-19 pandemic
Commercial flooring firm Mountfield said on Tuesday that it was considering making structural changes to the group in order to improve shareholder value amid the ongoing Covid-19 pandemic.
Mountfield said although the beginning of Downing Street's mass vaccination campaign brought "hope" for an improvement to medium-term trading, the extent of any improvement still remained uncertain given that it was unclear what impact the pandemic would have on the longer-term demand for its services in connection with the construction of data centres and City office space, two areas that drove the substantial increase in profitability in recent years.
The AIM-listed group stated management accounts for the second half of 2020 demonstrated the impact of the pandemic on the company, highlighting that with reduced levels of demand, current trading performance would not indicate an improvement from the firm's profitability in the first six months of 2020.
"As a result of the difficult trading conditions and the uncertainty as to which areas of construction will be in demand following the pandemic, the board is considering making structural changes to the group to improve shareholder value," said Mountfield.
As of 1125 GMT, Mountfield shares were down 8.33% at 0.55p.