Muse eyes brighter future
MUSE Developments, the Salford Quays-based urban regeneration arm of Morgan Sindall, this morning reported a 27% increase in sales to £19m (2010: £15m) in the six months to June 30, while operating profits were up by 25% to £1m.
The firm said that its appointment as preferred developer of the £130m programe to redevelop Bridge St in Warrington town centre and a £35m joint venture housing deal with Miller Homes at Bearsden in Glasgow were major highlights during the period and added that there were “encouraging” signs of renewed activity in the commercial sector.
It is currently on site with projects that have a construction value of £130m, compared with £58m a year ago.
“With many developers left inactive as a result of the banking crisis there is reduced competition for new opportunities which is helping the division to make progress,” the company said in a trading update.
“Sustained by the Group’s strong balance sheet, the last six months have seen the division short-listed on a greater number of potential projects than in the whole of last year.
“The next six months for the division hold the prospect of securing further development opportunities as current bidding activity is healthy.”
The firm said that it has a pipeline of regeneration projects with £1.4bn, with £400m of this already at preferred bidder stage.
Overall, Morgan Sindall saw its pre-tax profits drop by 9% to £16.7m, despite an 11% increase in revenues to £1.1bn.
