Morgan Sindall reflects on “disappointing” results

RUGBY-based contractor Morgan Sindall has seen its profit before tax drop by 19% to £25.2m in the year to December 31.

It had achieved a profit of £31.3m in 2013.

However, revenue was up by 6% to £2.22bn (2013: £2.09bn). 

Morgan Sindall said its results had been adversely impacted by a small number of construction contracts in construction & infrastructure.

But it said it had seen significant improvement in urban regeneration with operating profit of £10m (2013: £1m).

It also points to continuing strong momentum in fit out, with operating profit up 38% on revenue 19% higher.
 
Chief executive John Morgan said: “Whilst there have been strong performances from Fit Out and Urban Regeneration, the overall Group result for the year is disappointing, having been adversely impacted by a small number of construction contracts in Construction & Infrastructure.

“The progress in Urban Regeneration is particularly pleasing as it supports our long-term regeneration strategy and provides a positive platform for further investment in regeneration, leveraging off our existing strong market positions.
                                                                                                                                “Looking ahead to 2015, lower returns in Construction & Infrastructure are expected to remain for at least the first half of the year, as lower margin construction contracts tendered in 2012-2013 are worked through to completion. 

“However, the continued positive momentum expected within Fit Out, Affordable Housing and Urban Regeneration, together with further investment programmes in regeneration opportunities, and supported by the improvement in the quality of our order book, provides confidence that the Group is well positioned to deliver overall growth in 2015 and beyond.”