Half year revenues rise 15% for Morgan Sindall

CONSTRUCTION, infrastructure and design group Morgan Sindall has seen half year revenues rise by 15%.

The group, which has offices at the Birmingham Business Park, said the performance was strong set against a backdrop of challenging market conditions.

Revenue increased to £1,152m (2014: £998m), with operating profit before amortisation and exceptional operating items at £15.5m (2014: £15.2m).

The group said its order book had reached £2.6bn, down slightly (3%) on the previous year (2014: £2.7bn) but was supported by a £3.2bn pipeline of regeneration schemes (2014: £3.2bn). Adjusted earnings per share for the period was 24.5p (2014: 28.6p). The interim dividend has been maintained at 12p per share (2014: 12.0p).

Subsidiary Morgan Sindall, in a consortium arrangement with its sister company Lovell, has had its position on the multi-contractor Constructing West Midlands Framework extended by Birmingham City Council. The consortium, known as Community Solutions, has had its role on Lot 7 of the framework, which covers major capital projects with a value in excess of £500,000, extended by a further two years from September 2015.

Originally appointed in September 2011 for a four-year period, Community Solutions has delivered around 50 projects through the framework which have a combined value of over £120m. These include the £5.5m Old Square Shopping Centre in Walsall, which completed in 2014, and the £5.6m Perry Beeches IV free school which was awarded in 2013. Current work in progress amounts to approximately £80m.

The company is also benefiting from the new Marks & Spencer store at Longbridge, part of St. Modwen’s £100m Longbridge Town Centre scheme. The store is due to open in October in time for the Christmas shopping period. Morgan Sindall built the 150,000 sq ft, two- storey store which will be the Midlands’ largest M&S outlet. Downstairs will be a huge womenswear section, beauty department and a food hall, while upstairs will be menswear, childrenswear, homeware and a café with views over Austin Park.

Pat Boyle, managing director of Morgan Sindall’s Construction and Design business, said: “Morgan Sindall has continued to secure and deliver strategically important contracts across our business throughout 2015, whilst our commitment to working safely and sustainably, providing exceptional service to our stakeholders and ensuring effective cost management, has remained paramount.

“This achievement is testament to the professionalism of our people, our ability to provide a fully integrated offering on complex projects and the strength of relationships we have with our customers, supply chain and joint venture partners. We remain well positioned to capitalise on further opportunities throughout the remainder of the year.”

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