“Second half revenue and profitability were adversely impacted by issues encountered on a substantial office construction contract, where Mountfield Building Group Limited, as a subcontractor, was unable to obtain full recovery of the project costs,” the company said in a statement this morning.
However, the board still expects to be able to announce a return to full-year profitability when its 2012 results are published next month.
Mountfield also reports that subsidiary company Connaught Access Flooring is in final negotiations for a £3m contract to supply and fit the flooring for the first stage of a major European data centre. This would be the largest contract ever undertaken by Connaught.
The directors believe that the data centre sector will remain buoyant for the foreseeable future, with the group involved in negotiations on other new data centre construction and refurbishment projects, both through Connaught and Mountfield Building Group.
Chief executive Graham Read said: "We are encouraged by the flow of new work we are experiencing, and new contract tenders have increased markedly during the last three months. I am particularly encouraged by Mountfield's performance in winning follow-on work on multi-stage projects as well as new projects."
Got a story? Email news@theconstructionindex.co.uk
