Montpellier has stemmed its losses – but only just – as its latest interim results show a pre-tax profit of £150,000 on a turnover of £230m. In the same period last year, Montpellier plunged into the red to the tune of £20m.
Chairman Roy Harrison said Montpellier was making good progress in its recovery. “Trading in all of our businesses has been strong. The board is confident that the actions it has taken, and continues to take, will restore the group’s financial position by the year end,” he said.
The latest financial results cover the six months to 31 March 2005. During the period it hit problems in finalising “certain legacy contract settlements”. Despite making £15m-worth of provisions last year to cover the various headaches that were coming to the surface in two divisions - Allenbuild and YJL Construction – these have proved inadequate and another £1.9m has had to be set aside.
When the full year’s figures are announced later in the year, there will also be a £6m hit to cover reorganisation and restructuring. YJL Construction has been closed down.