West Midlands projects contribute to strong results for Morgan Sindall
Projects in the West Midlands have contributed towards strong profit growth for construction and regeneration group, Morgan Sindall.
The group, which has bases in Birmingham and Rugby, said interim profits rose 37% to £24.9m (H1 2016: £18.2m) on revenue of £1,307m (H1 2016: £1,148m), a 14% increase on the previous half year.
The group has also reported an order book of £3,801m, a 5% rise from £3,637m. Adjusted earnings per share were up 46% for the six-month period to 43.6p (H1 2016: 29.8p). The interim dividend was increased by 23% to 16p (H1 2016: 13p) and the group said it was confident of another strong performance in the second half of the year.
Recent awards include a £100m+ project, in joint venture, to refurbish the Oldbury Viaduct on the M5 and a two-year extension to the original three-year Framework Agreement with Western Power Distribution to deliver Excavation, Cable Laying and Reinstatement Works within their West Midlands region. Morgan Sindall was initially appointed to this framework in October 2014, with an estimated annual value of circa £30m+.
Elsewhere, Morgan Sindall has been appointed to a £27m project to construct a new six-storey Mathematical Sciences Building at the University of Warwick.
Also in the Central region, the company is on-site delivering a £22m hall of residence development for Newman University and a £40m Collaborative Teaching Laboratory (CTL) for the University of Birmingham.
In November 2016, Morgan Sindall’s Infrastructure business, in joint venture, was awarded the Central Enabling Works Contract for High Speed Two (HS2). The contract is worth up to £100m to Morgan Sindall over a period of four years.
In addition, the £30m refurbishment 55 Colmore Row has now been handed over to developer, IM Properties.
Birmingham-based partnership housing developer Lovell, a division of Morgan Sindall Group, also contributed to the results.
In the Midlands, Lovell’s forward order book exceeds £154m following new contracts with housing association partners and land-led developments.
Lovell expects to complete more than 400 new homes in the Midlands region during 2017.