Mountfield Group

Mountfield Group

209m shares in issue

£2.2m marketcap

Today I had my attention drawn to LSE guru and GC page author Riddler as he covers Mountfield Group (Mogp). My old mate Riddler often pulls up these recovery/contract orientated plays. Personally I look around the natural resource fields but felt that Mountfield was worth a mention on a basic appraisal.

The company are showing all the signs of a company that has turned itself around after losing wods of cash in 2011 the company announced in late 2012 HY report.

· Group revenues increased by 63% to £8.6m

· Mountfield revenues up 115% to £7.0m, margins maintained at 13.5%.

· Connaught revenues fell by 18% to £1.6m, however margins improved from 18.0% to 20.6%

· Pre-tax profits increased to £371,000 from £38,000

· Cash generated by operations improved to £103,000 against a shortfall of £800,000 in the corresponding period of 2011

· Maiden construction contract for renewable energy project secured

· Strong start to second half with £3.9m contract wins since period end

Mountfield in April record further high value contracts offset against a modest £2.2m Marketcap with further updates on a £3 million contract to supply and fit the flooring for the first stage of a major European data centre with the CEO quoting:

Graham Read, Chief Executive Officer, commented:

“We are encouraged by the flow of new work we are experiencing, and new contract tenders have increased markedly during the last three months. I am particularly encouraged by Mountfield’s performance in winning follow-on work on multi-stage projects as well as New projects.”

The company didn’t disapoint, so much on 2nd May 2013: ” Connaught Access Flooring (“Connaught”), the Group’s specialist data centre flooring company has now entered into the £3 million contract. ”

As often we see an aggressive pull back in the value of a company prior to news which would usually have the hallmarks of something worthy in the happy pipe with the company today rebounding.

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http://www.shareprophets.com/analysis/420/buy-mountfield-group-at-118p

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