StockMarketWire.com - Commercial flooring and construction group Mountfield said the majority of sites in its building division had reopened, though contract margins were being hurt by the Covid-19 crisis.

Mountfield said regulators had approved an extension of a deadline to release its annual results for 2019 to the end of September.

However, in a trading update, it said its operating profit had slipped to £0.85m, down from £1.13m.

Revenue had risen to £21m, up from £16.2m, but operating margin had contracted to 10.42%, back from 15.5%.

The results represented a miss compared to the company's previous forecast of a flat earnings performance.

'However, it is now clear that a substantial contract that has recently been completed, resulted in a loss on the project in the region of £320k,' it said.

'As a result of the deteriorating business climate, some of the larger contracts were negotiated at significantly lower margins than originally anticipated, something which the board expects to continue in the current environment.'

'The board is hopeful that contracts that the group expected to sign and those that are currently being tendered for will be resurrected in the third and fourth quarters of 2020 and that this will provide a good flow of work for the third quarter and beyond.'

'The value of the group's secured order book currently stands at approximately £9.3m, a figure that is somewhat lower than that recorded at the same point in 2019.'

'The group is working within its banking facilities and the cash flow of the businesses continues to be closely monitored and controlled.'


At 9:09am: [LON:MOGP] Mountfield Group PLC share price was -0.3p at 0.75p



Story provided by StockMarketWire.com