4th Aug 2015 07:02
LONDON (Alliance News) - Construction and regeneration company Morgan Sindall Group PLC on Tuesday said its revenue rose in the first half of 2015, but it swung to a pretax loss thanks to provisions it booked against onerous legacy contracts in its construction arm.
The FTSE 250-listed company said its pretax loss in the first half was GBP27.2 million, compared to a GBP13 million profit a year earlier, as it booked a GBP39.4 million provision against troublesome contracts in its UK construction arm. That offset a rise in revenue in the half, up to GBP1.15 billion from GBP998.5 million, along with hikes in other costs the group booked in the period.
The company said its fit-out operations performed well in the half, with organic growth expected to continue into the second, while its urban regeneration business also performed well and it saw an improved performance in its affordable housing response maintenance unit. But the construction and infrastructure division continued to take a hit from older contracts in London and the South East, completion of which is taking longer than expected.
Morgan Sindall said it would pay an interim dividend of 12 pence per share, flat year-on-year.
John Morgan, the group's chief executive, said it remains on track to meet its expectations for the full year and said it is still confident on its outlook for 2016.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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