nmcn PLC
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Description
Please note that we have ceased coverage of nmcn and that our last published estimates should no longer be relied upon.
The group was founded in 1946 as North Midland Construction and, with its water-focused subsidiary Nomenca, was rebranded as nmcn last year. It now consists of two segments: Water (72% of 2018 revenue and a similar proportion of profit) and Built Environment. (Longer-term the aim is for a more even balance in revenue and earnings between the two segments.) Water undertakes major civil engineering, construction and maintenance programmes for large water groups. Built Environment is engaged in a range of new build and refurbishment activities, a number of which address Government priorities, including student and private rental housing, health, roads and telecommunications.
Our view
The company should benefit from a strategy targeting sustainable earnings growth, supported by environmental investment and a more selective trend among customers seeking more stable, long-term partners after Carillion’s failure. The cash-positive group’s 2016 strategy prioritises margins, cash generation and risk management after incurring past loss-making legacy contracts.