SPC U.k. Spac Plc

TIDMMOGP

RNS Number : 8722I

Mountfield Group plc

06 April 2020

6 April 2020

Mountfield Group Plc ("Group")

and its Subsidiaries, Connaught Access Flooring Limited ("CAF") and Mountfield Building Group Limited ("MBG")

Trading Statement

Mountfield Group Plc, the AIM quoted commercial flooring and specialist construction provides the following trading update.

The Board advises that although the Group's year-end position has not yet been finalised it is able, on the basis of unaudited accounts, to state that both Subsidiaries traded well in the year to 31 December 2019 and that the Group recorded its highest level of turnover since its listing in 2008. As a result of the lower margin achieved on some of the Group's larger contracts, however, its net profit for the year is expected to be in line with that achieved in 2018.

The Board is currently assessing the impact that COVID-19 is likely to have on its business and the results for the year to 31 December 2020.

CAF

At present, all of CAF's major sites are operating. Revised working practices have been adopted on these sites in line with social distancing guidance for safe working practices. CAF is, however, mindful of the possibility that the position may change and continues to monitor the situation carefully.

MBG

All of MBG's major sites are now temporarily closed on the request of its clients and it seems unlikely that these will open until the current lockdown regulations are relaxed or further government guidance is given. The lockdown has also delayed the receipt of orders which were expected for works commencing in Q2. Overheads are being reviewed in light of this situation.

Group

The Board is hopeful that projects that have been delayed, contracts that the Group expected to sign and those that are currently being tendered for will be resurrected by the end of Q2 or early in Q3 of 2020 and that this will provide a good flow of work for Q3 and beyond.

Although it is hoped that activity levels in the construction industry will return to previous levels it is likely that the revised working practices designed to protect employees against catching COVID-19 will continue in place for some time.

The Group's secured order book is, to date, approximately GBP5.6m, which is lower than 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.

For the reasons outlined above, it is not possible to predict what the impact of COVID-19 will be on the Group and, as a result, the board is unable to provide any indication of what it anticipates the Group will achieve for the year to 31 December 2020.

The Group will keep the situation under review and update the market in due course.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014

For further information, please contact:

 
 Mountfield Group plc             01268 561 516 
 Peter Jay, Chairman 
 Andy Collins, Chief Executive 
  Officer 
 
 Cairn Financial Advisers LLP     020 7213 0885 
 Jo Turner / Liam Murray 
 
 

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END

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April 06, 2020 03:36 ET (07:36 GMT)

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