Turnover up 48% on a year ago with profit up 31%, but recent writedown not included
Morgan Sindall has seen its half-year turnover climb to well in excess of £1bn in a record set of interim results.
However, the results do not take into account the writedown it has been forced to make on its acquisition of two Amec divisions last year.
The construction and regeneration group saw revenue hit £1.24bn in the six months to 30 June this year, up 48% from £836m during the same period last year. The group made a pre-tax profit of £33.1m, up 31% from £25.2m in the first half of 2007.
Its performance has been buoyed by rapid growth in its infrastructure division, with operating profits rising to £7.7m during the period, a 90% rise from the £4m figure for the first half of 2007.
Morgan Sindall's construction group saw its operating profits for the half-year rise 86%, to £4.1m from £2.2m in the first half of 2007. However, revenue in the sector more than doubled, up to £418m in the last six months from £199m during the same period last year. The growth was driven by its £23m acquisition of the construction and infrastructure divisions of Amec in 2007.
That purchase caused Morgan Sindall to put out a trading warning last month, predicting that the outlook for 2009 would be hurt by the downturn in the commercial property and private-sector housebuilding sectors.
John Morgan, executive chairman, said: “Despite challenging market conditions, we have delivered a record set of interim results. We remain on track to deliver record results for this year in line with our expectations.”