Morgan Sindall order book up £400m as profits flatline

Revenues at Morgan Sindall fell by 5% in the financial year to 31 December 2010, ending the year at £2.1bn, compared with £2.2bn in the 2009 financial year.

When adjusting for one off charges, pre-tax profits were unchanged at £51.3m.

The group also benefited from cost savings of £21m during the year and this helped push its year end cash balance up by £31m, to £149m.

Its average cash balance during the year, which is a more accurate reflection of its true cash levels, was £63m, more than double the average cash balance it held during 2009.

Commenting on the results, Morgan Sindall chairman John Morgan said: “2010 was a year of important strategic and operational progress for the group. The restructuring we conducted to create Construction & Infrastructure leaves us better placed than ever to meet our clients’ needs, while Lovell’s expansion in response and planned maintenance opens up exciting new market opportunities.

“Trading remains challenging, but we continue to secure profitable projects. We are well placed to exploit opportunities presented in the short-term, whilst carefully monitoring market trends to maximise long-term growth potential. The group remains financially strong with an exciting future.”

The firm’s fit-out business recorded strong growth in turnover during the year and its revenues increased from £291m in 2009 to £415m in 2010.