Building firm’s profits given a £25m boost
COMPANY REPORTS FIVE PER CENT INCREASE IN ORDER BOOK TO £3.8BN
THE construction group behind some major city centre developments including Salford’s New Bailey Scheme and New Victoria, has reported half year revenues of £1.3bn.
Bosses of Morgan Sindall Group said it reflected a 14 per cent increase on last year’s £1.14bn figure, while operating profit for the for the six months to 30 June, was up 37 per cent to £24.9m, an increase from £18.2m.
The construction, infrastructure and design company reported an order book of £3.8bn, a five per cent rise from £3.6bn.
The group also owns north west based urban regeneration specialist Muse Developments and affordable-housing firm Lovell.
Both companies have contributed to the half year results.
During the first six months of this year, Muse moved forward on 23 projects with a total construction value of £385m. The company, which expects a further £227m of contract awards over the next 12 months, also maintained a healthy order book and development pipeline, which now stands at £2.4bn.
Key projects for Muse Developments in Manchester and the North West this year include New Victoria, a £185m mixed-use development next to Victoria Station in Corporation Street, which is currently a surface level car park.
In other areas, English Cities Fund – a joint venture between Muse, Legal & General and the Homes and Communities Agency, have completed Timekeepers Square, behind Chapel Street, Salford.
Meanwhile, Altrincham-based Lovell’s regional forward order book now exceeds £280m thanks to new contracts with housing association partners and land-led developments creating both open market and affordable homes. Lovell expects to complete nearly 700 new homes in the region during 2017. Morgan Sindall group chief executive John Morgan said: “This is a strong set of results, driven by another period of margin and profit growth in Fit Out and further progress on margin recovery in construction and infrastructure. “Reflecting our overall profit performance, our strong balance sheet and cash performance, and our confidence in the quality of our business, we are increasing the interim dividend by 23 per cent to 16p per share.”
This is a strong set of results, driven by another period of margin and profit growth John Morgan, CEO