By BFN News | 07:20 AM | Tuesday 23 December, 2014
Mountfield Group said despite the demand for its services and buoyant market conditions the directors expect group FY earnings 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," it said. "Mountfield Building Group Ltd (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," Mountfield said in a trading update for the year to Dec. 31. However, the board believes the group was 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 £6m of contracts in hand, including one previously announced in November for £4.5m 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. MBG was also expected to perform better in 2015 with a number of new contracts under negotiation. Story provided by StockMarketWire.
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