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Urban Infrastructure Group Inc. Reports Financial Results for the Three and Six Months Ended March 31st, 2024
Brampton, Ontario--(Newsfile Corp. - May 30, 2024) - Urban Infrastructure Group Inc. (TSXV: UIG)...
About this update from Urban Infrastructure Group Inc.
[{"type":"text","content":"Urban Infrastructure Group Inc. Reports Financial Results for the Three and Six Months Ended March 31st, 2024Brampton, Ontario--(Newsfile Corp. - May 30, 2024) - Urban Infrastructure Group Inc. (TSXV: UIG), a leading stage-one concrete and drainage infrastructure construction group, specializing in large scale new residential housing developments, announces its financial results for the three and six months ended March 31st, 2024. All financial information is provided in Canadian dollars unless otherwise indicated. Ungad Chadda, CEO of UIG stated, \"Urban continues to execute on its strategy and day-to-day business, however we have not been immune to the slow down in new housing builds that has prevailed over the last number of months. The slowdown has impacted our contracted project delivery schedule in the form of project delays. While we cannot predict the length of these delays with certainty, our view is that the long term structural shortage of housing in Ontario and other parts of Canada will remain a critical issue. Notwithstanding the well understood cyclical nature of the housing industry, Urban is committed to its ambitious, long term growth strategy which leverages the promising future of the Canadian construction industry with its many demographic and macroeconomic tailwinds. Notably, the current slowdown has had a positive impact on our M&A initiatives with the effect of accelerating and expanding the number of active M&A discussions with our stage-one construction industry targets.\"Management Commentary on the First Six Months of Fiscal 2024:UIG's fiscal second quarter is a seasonally slow period due to the winter months. In this fiscal year that slowdown was exacerbated by an industry-wide, well documented slow-down in the residential new home building market. As a result of the delays, UIG's revenue for the quarter was significantly lower than the prior year comparative period. UIG continues to have a very strong pipeline of contracted jobs, and while it is unclear as to where the industry inflection point will be, based on our day to day discussions with our customers we are cautiously optimistic that conditions will improve going into the summer construction period. The June 5th Bank of Canada meeting will be a very important data point for our industry and for Urban.In the first six months of fiscal ...