Trading Statement

RNS Number : 5841R

Mountfield Group plc

30 June 2015

 

Mountfield Group Plc

("Mountfield" or the "Group")

Trading Statement

The Directors of Mountfield are pleased to report that the recent review of Mountfield Building Group Limited's ("MBG") business is already producing measurable benefits.

The review led to a change of focus for MBG from carrying out projects of a high risk fixed price nature a number of which ended with MBG earning only minimal margins, to the targeting of works undertaken through projects in direct contract with the client, that carry lower risk and are likely to produce consistent and more profitable margins. This, coupled with the progressive reduction in MBG's overhead costs resulting from the change in strategy, is producing a significant improvement in its trading performance in the current year.

Building on from a strong start to the year, the Company has secured a further £2.1m of direct works for completion in 2015 and is engaged in negotiating a number of other contracts that are likely to bring the value of works secured by the end of Q3 for completion in 2015 to a significantly higher figure.

Andy Collins, the Group Chief Executive commented that

"The Group Board is excited to see the way in which the fortunes of MBG are being turned around. The re-focussing of the Company towards direct works and cutting its costs to make it more competitive is working well in a market where there are significant opportunities of profitable work on offer for competitively run construction businesses that MBG are now able to pursue".

.Contacts:

Mountfield Group Plc	01268 561 082
Andy Collins, Chief Executive Officer
WH Ireland Limited	0207 220 1666
Paul Shackleton / James Bavister

 

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