| |
| Please Note - Streaming News is only available to subscribers to the Active Level and above |
|
|
|
NMCN downgrades guidance, slashes previous result due to accounting errors
StockMarketWire.com
|
Infrastructure contractor NMCN downgraded its forecasts for 2020 and trimmed its previous results for 2019 after identifying errors in its books.
Pre-tax losses this year were expected to be around £16.5 million, compared to previous guidance of losses of between £13.5 million and £15.0 million.
NMCN said an investigation had verified adjustments to five contracts within its water business 'relating to errors which should have been identified and corrected at the reporting date'.
Pre-tax profit for the year ended 31 December 2019 would be restated to £2.1 million, down from £7.4 million.
In addition, NMCN said a number of difficult contracts were being brought to a conclusion.
'This, together with Covid-19 and the AMP project cycle have made for an extremely challenging year,' it said.
'Some £20 million of secured orders originally scheduled to be completed this financial year have slipped into 2021, due to the effects of coronavirus.'
'This revenue is now reflected within the 2021 budgets.'
Looking ahead, the company said the pandemic would continue to constrain its operations running into 2021.
However, it said it was entering the new year with a secured order book of around £200 million and with visibility on a further £100 million of framework orders at this stage.
'With expenditure in the AMP 7 cycle starting to ramp-up and the benefits of our efficiency initiatives set to accrue, we look forward to a return to previous levels of profitability,' NMCN said.
'As the level of group profitability recovers, the board will look to reinstate the payment of dividends beyond 2021.'
At 9:29am: (LON:NMCN) share price was 0p at 220p
Story provided by StockMarketWire.com
|
|
|
|
|
|
