Saturday, August 29, 2009

Midas loses its touch in downturn

Several small loss-making jobs and lower interest payments on cash reserves saw pre-tax profits at Exeter-based Midas Group slide from ВЈ5.9m last year to ВЈ631,000 in the year to April 2009.

Despite difficult trading, overall group turnover rose 16% to ВЈ243m as the construction and property group raised its slice of a shrinking marketplace. The West Country group also managed to continue to strengthen cash reserves over the year to peak at ВЈ36.7m.

The directors warned the contracting market had put margins under heavy pressure. This situation was further aggravated by the need to write-off bad debts, which were hampered by the difficulty in securing credit insurance over the year.


Midas loses its touch in downturn


Midas said lessons had been learnt to avoid making the same mistakes which lead to losses on several small projects at the construction arm which saw turnover rise 25% in the year.

The group boasts a strong orderbook and more than 20 framework agreements. While the property and retail business struggled in the downturn, Mi-space (UK), the affordable housing arm formed two years ago, saw turnover jump from ВЈ3.8m to ВЈ15.2m.




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