Building firm announces record profits for last 12 months

New Victoria, Manchester

Building firm Morgan Sindall has announced record preliminary results for the year ended 31 December.

Morgan Sindall Group delivered record profit for the full year to 31 December 2018, with adjusted profit before tax up 23% to £81.6m.

The firm had revenues of £2.9bn, a 6% increase on the previous year.

The group reported a committed order book of £3.6bn and a regeneration and development pipeline of £3.1bn.

Adjusted earnings per share was up 25% for the year to 151.8p (FY 2017: 121.1p) and total dividend per share increased by 18% to 53.0p (HY 2017: 45.0p).

Pat Boyle, managing director for Morgan Sindall Construction, said: “The past 12 months have proven to be a positive year for Morgan Sindall Construction, as we continue to focus on our customers’ needs and deliver a variety of complex projects across the country.”

Morgan Sindall Construction is working for Liverpool City Council at the Paddington Village Central site in Liverpool’s Knowledge Quarter.

The company is currently onsite delivering two major projects, with significant upcoming developments including a new 160-bed hotel – and a 60-bedroom upscale aparthotel to the value of £35m.

The company has also recently been appointed to transform the former Royal Mail site on Copperas Hill into a £32m teaching hub and sports centre for Liverpool John Moores University.

The site will provide high quality new buildings and open spaces, as well as regenerating a key gateway site in the heart of the city centre.

In addition to this, work began in October at the third build-to-rent block at English Cities Fund’s Slate Yard residential project in Salford. When complete, the £34m, 21-storey tower located within the New Bailey development will comprise 199 one-, two- and three- bedroom homes.

Manchester-based urban regeneration and property development company Muse Developments is also part of the group.

2018 has been a strong year for Muse, with performance in line with expectations and a record profit for the business.

The year saw the company moving forward on 36 significant regeneration schemes across the UK. Thirteen projects totalling a construction value of £350m are currently on site across the UK with Muse expecting to place a further £510m of construction contracts over the next 12 months.

The company’s order book and forward development pipeline now stands at £2bn and Muse was selected as preferred developer on projects worth a further £0.5bn of gross development value in 2018.

Detailed design discussions continue at the New Victoria scheme in Manchester city centre, next to Victoria Station, following planning approval last year. The masterplan includes a 150,000 sq ft office with car parking beneath and up to 520 apartments in two residential buildings.

“2018 was a strong year for Muse, with significant progress on many of our regeneration schemes across the region and we are continuing that momentum in 2019,” said Phil Mayall, regional director for North West and Wales at Muse Developments.

“We’ve seen major milestones achieved at Salford’s New Bailey, with a new 635-space multi-storey car park now complete, construction commencing on office developments Two and Three New Bailey and a third residential building at The Slate Yard, as well as work continuing on office development, Riverside House.

“Construction is now underway on office development 2 Stockport Exchange, a major phase of development at Warrington’s Time Square, including a 2,500 screen Cineworld cinema with family restaurants, new market hall and 100,000 sq ft civic offices for Warrington Borough Council, as well as 101 new homes at Islington Wharf Locks in Ancoats, Manchester.”

Manchester based Lovel Homes, which has its North West regional office in Altrincham is part of the group.

During 2018, Lovell built more than 2,500 homes across England, Scotland and Wales ranging from new-build open market homes, private rented sector housing and affordable homes to large-scale refurbishment and housing-led regeneration programmes.

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