Muse to return to profit despite low demand
SALFORD property business Muse Developments is on track to make a profit this year despite operating in a “subdued” market.
In a trading update for the six months to June 30 Muse’s parent company Morgan Sindall said the business, which specialises in urban regeneration, was making progress in a market afflicted by low levels of occupier demand for commercial property.
One of Muse’s biggest projects is the £220m Talbot Gateway office and retail scheme in Blackpool. It’s also handling a £300m town centre redevelopment in Doncaster.
In the year to December 2009 Muse recorded a pre-tax loss of £1.5m on turnover of £32m. According to today’s statement the business should make a “modest profit” for the half and full year.
Overall London-based Morgan Sindall said its financial position remained strong with net cash at the half year expected to be more than £100m and a forward order book worth £3.5bn, up £300m since the start of the year.
The Lovell division, which handles affordable housing, has seen demand for new build social housing and refurbishment remain firm, while market conditions in the wider housing are slowly improving. But the group said demand was still subdued due to the lack of mortgage availability.
“We have had a positive first half of 2010 and with our broad sector spread we remain well positioned to face the challenges ahead and to benefit from opportunities as they present themselves,” said the company.
