Up 19p and 12.5% on one reported sell of 500 quid.

These were up nicely yesterday aswell.

Anyone know if something is happening in the background????????????.

I own these shares.

cheers GF.

Better put in a 15 year chart so I can see where the all time high is ;-)

North Midland Construction said annual profits halved after a stronger underlying performance was blighted by a troublesome legacy contract.

Pre-tax profit slipped to £1.0m, despite revenue rising 17% to £291.8m.

Underlying pre-tax profit, however, increased by 40% to £8.3m and the company declared a full-year dividend of 6.0p, up 33% from 4.5p in 2016.

'It is disappointing that focus on a healthy underlying group performance from our continuing operations appears to continue to be diverted by the outcome on the remaining legacy contract,' chief executive John Homer said.

'We are pleased by the underlying position and in particular the success achieved on driving our cash balance and the quality of the forward order book.'

'There are positive signs of continued growth in our chosen market sectors.


My view:
I look at it this way.

If the underlying profit is £8.3m (and the legacy contract is cash neutral on which you can form your own opinion) it doesn't matter that the balance sheet isn't perfect, because at that level of profit and cash generation it will be in a year or so.

£8.3m underlying profit compared with a market cap of £30m is fairly unusual. Further assets less liabilities is a positive £12.8m which reflects their ownership of premises and plant and machinery.



When I've feeling overenthusiastic I look at it this way.

Next year we could make £10m underlying with some ease since the order book is secure and margins are rising. That give EPS of 100p and a P/E of 3 with no pension fund deficit, net cash and the finance debt of £5m supported by fixed assets of £17m and cash at the bank of £17m as well.

Dividend yield is poor though at 2% and reflects managements desire to further improve the balance sheet which is no bad thing given their rate of growth.

At the Annual General Meeting to be held today at noon, the Group's Chairman, Robert Moyle, on behalf of the Board will make a statement to shareholders, including the following on current trading:

"We are pleased to be able to report further progress in the first quarter of this year over the comparable period last year. Group revenue increased by 19.8% to £74.55 million and profitability by 11.0% to £0.64 million. The net margin declined to 0.86%, which the Board continues to consider to be an unsatisfactory return.

Share price getting there after it got a bit over-enthusiastic too quick.
Everything going well. I am holding with 100% conviction and complete confidence in this trade