Nomenca, the mechanical and electrical subsidiary of North Midland Construction, has seen profits climb 28.4% to £1.32 million, as reported in its financial results for year ended 31 December 2012.

Revenue at the division increased 23.3% to a record £79.1 million (2011: £64.2 million). North Midland Group said Nomenca “continues to benefit from escalating expenditure by the water industry on the AMP5 programme.”

North Midland said that as its subsidiary grows, higher value and more technically complex projects can be undertaken. A particular example of this is the £20 million contract for J Murphy & Sons Ltd at Deephams, a Thames Water plant in London, where complex large capacity pipework and pumping equipment is being installed into deep structures.

The company has recently been successful in winning capital maintenance frameworks for United Utilities in the North West for a potential duration of ten years with a projected total expenditure of £300 million.

Meanwhile, the NMCNomenca division, North Midland’s integrated water business, has also delivered an enhanced performance over the previous year on increased revenue. The existing framework for Severn Trent Water “continues to deliver successfully” and the division has recently been awarded further opportunities in the Southern Area, which will result in increased revenues of between £6 - £10 million per annum.

Chairman Robert Moyle said the E5 consortium continues to make headway on the £200 million programme of major projects for Severn Trent Water and although there is still a long way to completion, the projected outturn is “encouraging.”

Revenue for North Midland Construction as a whole stood at £168.9 million, up 1% on last year.  The group returned to profit as it posted a £0.71 million gain before tax, compared to £0.78 million loss last year.

Both the Highways and Utilities divisions, recently merged, as well as the Building & Civil Engineering arm, struggled during 2012, implying that only the lucrative work in the water industry enabled North Midland to return to profit this year.

The secured order book for the current financial year is circa £130 million, excluding the recent capital maintenance framework that has been awarded to Nomenca by United Utilities.