Did you know that there is a version of The Construction Index for the USA? Visit the site No thanks
Follow us on Twitter Follow us on LinkedIn Follow us on Instagram
Daily construction news
Weekly plant news

Construction News

Thu March 30 2017

Related Information
Related Information
Related Information
Related Information

News » UK » Morgan Sindall returns to profit » published 23 Feb 2017

Morgan Sindall returns to profit

Morgan Sindall has reported a pre-tax profit of £43.9m for 2016 on revenue up 7% to £2,562m.

The result represents a turnaround for Morgan Sindall, which reported a pre-tax loss of £14.8m in 2015 after writing of £47m on Faslane contracts inherited from its 2007 Amec acquisition.

Even adjusted for exceptionals and intangibles, there was clear improvement with underlying pre-tax profit up 32% from £34.3m to £45.3m for the year endings 31st December 2016.

Chief executive John Morgan said: “These results demonstrate the considerable strategic and operational progress made in the group over the last few years and the underlying quality of the business.

“The UK is struggling to cope with the increasing demand for affordable housing and there is a clear need for government to deliver urban regeneration and infrastructure investment to support future economic growth. Morgan Sindall Group has strong established positions in these markets, and the balance sheet and cash position to fund further investment and growth.

“From this strong base, we are confident in the outlook and expect the positive momentum across the group to continue through 2017 and beyond. With significant opportunities in Partnership Housing, the continued improvement in operational delivery in Construction & Infrastructure, and the size and quality of our secured order book in Fit Out and elsewhere across the group, we are well-placed to deliver a result for the year which is slightly above our previous expectations."

In Construction & Infrastructure, the operating margin improved to 0.7%, compared to 0.3% in 2015. Adjusted operating profit was up at £8.9m (2015: £3.8m).

 

 

Headline results by business segment

 

 

Revenue

Operating profit/(loss)

Operating margin

 

£m

change

£m

change

%

change

Construction & Infrastructure

1,321

+7%

8.9

+134%

0.7%

+40bps

Fit Out

634

+4%

27.5

+15%

4.3%

+30bps

Property Services

55

-8%

0.7

+170%

1.3%

+300bps

Partnership Housing

433

+18%

13.4

+40%

3.1%

+50bps

Urban Regeneration

156

+42%

13.4

+4%

n/a

n/a

Investments

15

n/a

(2.0)

n/a

n/a

n/a

Central/Eliminations

(52)

 

(13.1)

 

 

 

Total

2,562

+7%

48.8

+26%

1.9%

+30bps

 

 

MPU

Download our free construction news iPhone / iPad app. Sign up to our FREE email newsletters or subscribe to our RSS feed for regular updates on the latest Construction News, Plant News, Contract News & Supplier News. The Construction Index also provides the latest Construction Tenders, Construction Market Data & Construction Law Commentary all FREE.

This article was published on 23 Feb 2017 (last updated on 24 Feb 2017).

More News Channels