19th Feb 2015 11:30
LONDON (Alliance News) - Morgan Sindall Group PLC Thursday reported a statutory rise in pretax profit in its last financial year but lamented a "disappointing" result for the group as adjusted numbers fell by 19%.
In a statement, the construction and regeneration company said it made a GBP22.8 million pretax profit in 2014, compared with GBP13.9 million in the previous year, with revenue up to GBP2.22 billion from GBP1.10 billion.
Adjusted pretax profit, which strips out intangible amortisation of GBP2.4 million, exceptional operating items of GBP14.7 million, and a deferred tax credit of GBP2.5 million, fell to GBP25.2 million from GBP31.3 million.
Chief Executive John Morgan said the overall result for the group was "disappointing" despite strong showings by its Fit Out and Urban Regeneration divisions, having already been hit by a number of construction contracts in its Construction & Infrastructure division.
"The progress in Urban Regeneration is particularly pleasing as it supports our long-term regeneration strategy and provides a positive platform for further investment in regeneration, leveraging off our existing strong market positions," Morgan said in a statement.
"Looking ahead to 2015, lower returns in Construction & Infrastructure are expected to remain for at least the first half of the year, as lower margin construction contracts tendered in 2012-2013 are worked through to completion," Morgan said.
"However, the continued positive momentum expected within Fit Out, Affordable Housing and Urban Regeneration, together with further investment programmes in regeneration opportunities, and supported by the improvement in the quality of our order book, provides confidence that the group is well positioned to deliver overall growth in 2015 and beyond," Morgan.
The company kept its dividend for the year as a whole at 27 pence.
Morgan Sindall shares were up 5.0% at 676.00 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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