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Morgan Sindall profit falls 28%, turnover drops 13%

23 Feb 10 Morgan Sindall’s pre-tax profit has dropped 28% for the year ended 31 December 2009, after a decline in its fit-out and affordable housing activities.

Morgan Sindall’s pre-tax profit has dropped 28% for the year ended 31 December 2009, after a decline in its fit-out and affordable housing activities.

The contractor’s pre-tax profit for the year was £44.7m compared to £62.3m in 2008.

Turnover fell 13% to £2.2bn (2008: £2.5bn), while the contractor’s order booked dropped to £3.2bn (2007: £2.7bn).

However, Morgan Sindall said it has more than £900m of projects, and believes that this, plus the strength of its order book, should offset the weakening of public spending.

Executive chairman John Morgan said:“These results reflect a very satisfactory performance in difficult trading conditions.

“We remain in a strong financial position and are well placed to take advantage of the opportunities which the market will present.

“The markets in 2010 will be similar to those we experienced in 2009 but we remain confident of making good progress throughout the year.”

Turnover in the fit out division dropped to £291m from £474m while operating profit reduced to £13.8m from £25.8m.

Lovell Partnerships, the social housing division, generated an operating profit of £14.9m compared to £21m last year with turnover down £3m to £377m.

Construction’s operating profit rose 37% to £13m from £9.5m on turnover down to £743m from £813m.

Infrastructure services also enjoyed a rise in operating profit, up 19% to £17.1m from £14.4m on turnover of £770m, down from £799m in 2008.
 

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