Revenues and pre-tax profits slip despite increased orders
Morgan Sindall has increased its order book by £0.5bn in the first six months of the year but has seen revenues and pre-tax profits slip.
In its half year report for the six months to 30 June it said revenue had dropped 14% to £0.98bn compared to last year while profit before tax dipped 10% to £18.4million.
The firm said the outlook for the rest of the year remains challenging, “but its broad spread of activities provides resilience and that it is well placed to increase profitable market share”.
Morgan Sindall’s fit out division has seen a strong performance with revenue increasing 12% to £179m, compared to £160m in 2009, driven by greater demand for larger projects from professional and financial services sectors in London.
Its construction and infrastructure businesses have now been combined in a bid to improve efficiencies and deliver £6m of cost savings.
The firm’s affordable housing arm has seen comparable performance to same period last year with an operating profit of £6.9m on revenue of £173m. It also spent £6.6m buying Powerminster from MJ Gleeson to boost its planned and response maintenance capabilities.
John Morgan, executive chairman said: “These results demonstrate our continued strategic and operational progress. Whilst we are conscious that market conditions remain challenging, our financial strength, breadth of capabilities and leading positions across a range of market sectors leave us well placed to capture further market share. We look to the future with confidence.”
Morgan Sindall has also been named preferred partner for the Bournemouth Town Centre Master Vision regeneration scheme. The 20-year scheme, which has a contract value of between £350m and £500m, is a joint venture public private partnership with Bournemouth council to spearhead the regeneration of the town centre.