Mountfield Group plc Trading Statement (5255A)
December 23 2014 - 2:01AM
UK Regulatory
TIDMMOGP
RNS Number : 5255A
Mountfield Group plc
23 December 2014
MOUNTFIELD GROUP PLC
Trading Update
The Directors of Mountfield Group Plc ('The Group') provide a
trading update for the year ending 31 December 2014 and set out
their expectations for 2015.
Despite the demand for its services and buoyant market
conditions, the Directors expect that Group earnings for the
financial year to 31 December 2014 will be below market
expectations. This anticipated drop in full year earnings is
principally the result of problems on two contracts that were
undertaken by the MBG division during the year where the expected
profit in one was below budget and it is anticipated that a
provision against the budgeted profit will have to be made in
respect of the second. MBG is in discussion with the main
contractor on the latter contract as to the final account and
expects that to be finalised in early 2015. The Group will provide
a further update in due course.
The board believes that the Group is set to perform strongly in
2015 due to the continued strong demand for its services and to
Connaught Access Flooring Limited's ("Connaught"), having already
secured the new contracts that will enable it to improve on this
division's strong trading performance in 2014.
Connaught already has approximately GBP6m of contracts in hand,
including one previously announced in November for GBP4.5m for the
supply and installation of raised access flooring in a new City HQ
office development. It is also proposing to expand its business
into new areas.
Mountfield Building Group Limited ("MBG") is also expected to
perform better in 2015 with a number of new contracts under
negotiation.
Strategic Review
As a result of the expected shortfall in profits and the
unsatisfactory financial performance of the Group, taken as a
whole, its Directors have commenced a Strategic Review. The Review
will look at a set of strategic and administrative changes to be
made within the Group that will be designed to enable it to reduce
its operating costs and improve its margins and also make it less
vulnerable to losses on contracts and thereby significantly improve
its financial performance.
Contacts:
Mountfield Group Plc
Graham Read, Chief Executive Officer 01268 561 516
WH Ireland Limited (Nominated adviser)
Chris Fielding, Head of Corporate Finance 020 7220 1666
James Bavister, Corporate Finance Manager
This information is provided by RNS
The company news service from the London Stock Exchange
END
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