The Group reported a modest profit of £177,000 in 2015; compared to a £3.9 million net loss in 2014. The Group reported a turnover of £13.033 million, compared to £11.802 million in 2014. Operating profit surged to £203,895 in 2015 from £74,385 in 2014.
The poor performance in 2015 was primarily due to its underperforming subsidiary, Mountfield Building Group Limited, which lost £587,211 that year. The Group’s Board responded by undertaking a major strategic review of the structure and businesses of Mountfield Building Group.
Mountfield Building Group showed that it is on a sustainable and profitable path to recovery in 2016 with an operating profit of £203,895, compared to £74,385 in 2014. Mountfield Building Group’s transformation followed an extensive rationalisation that was completed in April 2015. Mountfield Building Group was transformed into a construction company with a substantially reduced cost structure and a business strategy that limited its choice of contracts to those with consistent margins and low risk. It is now trading profitably. So far in 2016, Mountfield Building Group has secured works totalling £3 million.
According to the Group’s financial statements, Connaught Access Flooring Limited (CAF) continued to perform extremely well. The Group’s highlight was CAF’s contract to supply and install 70,000 m2 of flooring at a new City of London HQ. The contract is likely on completion to have produced revenue of £4 million in 2015, with an additional £1.5 million expected in 2016. In addition the company has complimented the larger contracts by further developing its special works division, which produces strong margins. Combined with its core business CAF produced a turnover of £7.5 million in 2015.
“Demand for the Group’s services remains high and as a result of the operational changes that have been implemented we now have an operation that has a substantially improved focus and a more efficient and low cost operating base,” said Peter Jay, Executive Chairman of Mountfield Group.