Contracts review identifies losses
Construction and engineering services company nmcn has issued a trading update following an extensive review of major contracts. The Board now expects to report a loss before tax of £13.5 – 15.0m for FY 2020E, due to costs already incurred, with limited impact on cash. We have accordingly amended our estimate for the current year but have maintained our FY 2021E estimates, albeit with a cut in our forecast dividend. While a setback, we continue to believe nmcn is well placed to benefit from strong positions in key UK infrastructure priorities including water, roads and telecoms.