Morgan Sindall looks to exceed expectations with ‘strong’ half-year results
A substantial improvement in margins within its core construction and infrastructure business has helped Morgan Sindall achieve “strong” half-year results.
Profits at the group were up over a quarter on last year’s figures with Morgan Sindall announcing it is “confident of a strong performance” for the second half of 2018, with results expected to surpass expectations.
Morgan Sindall delivered profit growth in the first half of this year with adjusted operating profit up 28% to £31.9 million (HY 2017: £24.9m) on revenue of £1,423m (HY 2017: £1,307m), a 9% increase on the previous half year.
The group reported an order book of £3,604m with adjusted earnings per share up 28% for the period to 55.6p (HY 2017: 43.6p). The interim dividend has been increased by 19% to 19.0p (HY 2017: 16.0p) with the group confident of a strong performance for the second half of 2018.
John Morgan, Morgan Sindall Group chief executive, said: “I am pleased to report another strong set of results, which demonstrate the considerable operational and strategic progress made across the group.
“Fit Out and Construction & Infrastructure have both continued to deliver margin and profit growth, which has been complemented by a good performance from Urban Regeneration. There remain a significant number of opportunities in regeneration and our strong balance sheet and cash position leave us well placed to invest further in this key strategic area.”
He added: “Based upon its current trading pattern and order book visibility, the second half outlook for Fit Out is very positive and as a result of this, the group is on track to deliver a result for the year which is slightly ahead of previous expectations.”
Partnership housing developer Lovell said it has contributed to today’s half year results with a Scottish regional forward order book exceeding £102m as its business continues to expand. Lovell expects to complete over 680 new homes across Scotland in 2018.
Key Lovell projects include Lochside Grange, a £25m development of 133 two-, three-, four- and five-bedroom homes in Kinghorn, Fife, which is being delivered in partnership with Kingdom Housing Association and Fife Council.
The company is Renfrewshire Council’s preferred contractor for a £10m contract to build 80 social rented homes at Bishopton, Renfrewshire while £67m of work is planned through West Lothian Council’s new-build social housing programme.
Lovell managing director, Steve Coleby, said: “Boosting housing supply and helping more people into home ownership continue to be national priorities for Lovell. Our strong record of working with housing association and local authority partners to answer the demand for new homes and unlock land for development means we are well placed to help bring forward quality homes available to people across a range of incomes in the places where they are most needed. This is reflected in the company’s combined national forward order book and regeneration and development pipeline which is now worth over £1.16 billion.”