Subdued market dents Muse profits
URBAN regeneration firm Muse Developments has reported a 30% drop in operating profits.
The firm, a part of the the construction group Morgan Sindall, said this was down to the subdued market and costs associated with the ISIS Waterside Regeneration joint venture it acquired last year.
Its North West projects include Grand Central in Stockport, Islington Wharf in Manchester and Warrington’s town centre plans.
Morgan Sindall’s figures for the year to December 31 showed Muse’s operating profit fell to £2.7m from £3.9m. Revenue grew from £57m to £62m.
Muse, which has its Northern base in Salford, said it has secured £45m of Government funding to unlock stalled housing developments.
Warwickshire-based Morgan Sindall said revenue for 2012 came in at £2bn, down 8%, while pre-tax profit was £34.2m (2011: £40m), a decline of 15%. Basic earnings per share dropped 6% to 72.5p (2011: 77.5p) and the dividend declined 36% to 27p (42p).
Chief executive John Morgan said: “2012 has seen a solid performance in what has been a very tough market. The newly structured board is focused on managing the business tightly to ensure we emerge from the downturn in a strong position to take advantage of the opportunities we believe lie ahead.
“Our exposure to infrastructure continues to grow, and we see further opportunity to leverage our strong track record and gain market share. The momentum in our regeneration pipeline reinforces our confidence that returns from our investment will start to increase over the medium term and deliver superior returns.”
