North Midland Construction (NMC) has reported a major jump in pre-tax profits in its latest financial results.

For the six months ended 30 June 2017, the company revealed profit before tax rose by 128.8% to £1.22 million, compared with just £512,000 in 2016.

In addition, revenue increased by 4.3% to £135.1m from £129.5m last year.

Despite delays to starting secured construction projects which impacted revenue and profitability, NMC said these schemes are now well underway and and the remaining order book to be completed for this year stands at £23.5m, "giving confidence that the full year's targets will be achieved".

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However, the company's Power division suffered from a shortage of orders, resulting in revenue declining 46% to £7.47m. A return to profitability is forecast for the second half of the year.

In addition, NMC's Highways division increased revenue by 6% to £21.3m, while revenues in telecommunications sector increased by 17% to £18m. The Water sector also continues to be a major market for the Group, with several major projects being undertaken either directly or in collaboration with partners.

Chief Executive John Homer revealed the company is continuing to invest significantly in recruitment "as we believe that our people are the overarching differentiator and the driver for our continued success".

"These results demonstrate the continued strategic advancement made in the business during the trading period," he said.

"Our focus on enhanced margins and cash generation is beginning to become apparent and is anticipated to continue going forwards.

"The outlook for our future trading remains positive and provides the opportunity to further improve the earnings from our operations. The Board is anticipating enhanced like-for-like revenue growth in the second half of the year, coupled with an enhanced operating margin percentage."

(LM)