7th Aug 2019 11:36
(Alliance News) - Construction and regeneration firm Morgan Sindall Group PLC on Wednesday reported a strong rise in interim profit and, as a result, now expects full-year results ahead of previous expectations.
In the six months to June 30, Morgan Sindall's pretax profit increased 19% to GBP35.5 million from GBP29.9 million.
The company's revenue was flat year on year at GBP1.42 billion.
The construction firm's secured order book stood at GBP4.2 billion, 19% ahead of the year before. Morgan Sindall's regeneration & development pipeline was 6% higher year on year at GBP3.3 billion.
Morgan Sindall upped its dividend by 11% to 21.0 pence from 19.0p the year before.
"We have had a strong first half of the year and these results underline the significant operational and strategic progress being made across the group. Our strong balance sheet including our net cash position is a significant differentiator for us, allowing us to make the right long-term decisions for the business, which best positions us in our markets for continued sustainable growth," said Chief Executive John Morgan.
Morgan Sindall ended the half with GBP114 million in net cash.
Within Construction, the company said it achieved "further margin improvement" in its Construction & Infrastructure business, edging higher to 2.0% in the half from 1.7% the year before. As a result, the unit's operating profit jumped 23% to GBP13.9 million.
Morgan Sindall's Fit Out business "performed as expected" against the predicted backdrop of a "general tightening" in overall market conditions with profit 13% lower at GBP16.4 million.
The company's Property Services business' margins improved along with volume gains, resulting in profit tripling to GBP1.6 million.
Within the company's Regeneration businesses, Partnership Housing experienced "operational improvements", with profit jumping 39% to GBP6.4 million. Morgan Sindall said the business has "significant potential".
Urban Regeneration profit increased by 36% to GBP8.3 million.
Morgan added: "There is much positive momentum across the group and with our high quality, growing order book, we are excited by the opportunities ahead. Following our strong first-half performance and with the current visibility we have of the rest of the year, we now expect to deliver a result for the full year which is slightly ahead of our previous expectations."
In 2018, Morgan Sindall reported pretax profit of GBP80.6 million on revenue of GBP2.97 billion.
Shares in Morgan Sindall were 2.5% higher in London on Wednesday at 1,138.00 pence each.
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