Morgan Sindall has reported strong profit growth in the first half of this year, with adjusted operating profit up 18% to £37.5m, compared to £31.9m last year.
The increased profit comes despite a slight drop in revenue of £1,421m, compared to £1,423m for the same period last year. The company also reports a secured order book of £4.2bn, up 19% from the year end, with the regeneration and development pipeline now £3.3bn, up 6% from the year end position.
With adjusted earnings per share up 15% for the period to 64.2p, and interim dividend up 11% to 21.0p, the group is confident of a strong performance for the second half of 2019.
Simon Smith, managing director for Morgan Sindall infrastructure, said, “We entered 2019 in a robust position, and these interim results show that we are continuing this positive momentum. Infrastructure’s strategic focus on six specific sectors and careful selection of projects within these markets, combined with our commitment to delighting our customers, stands us in good stead for continued progress.”
Pat Boyle, managing director for Morgan Sindall construction, said, “We are dedicated to not only delivering outstanding projects that exceed expectations, but also to leaving a lasting legacy by improving the social, economic and environmental wellbeing of the communities in which we operate. We think this genuine commitment to social value is a real differentiator for us.”
Infrastructure projects which have contributed to the half year results include two new smart motorway schemes with Hghways England worth a combined £322m, and the rail team has begun work on the £196m joint venture Barking Riverside extension project for Transport for London.
The company also won a £1.6bn Sellafield contract to provide civils construction management, which is estimated to be worth a total £5bn over 20 years, and works have begun on the £80m Visual Impact Provision project in Dorset following the contract award by National Grid.
Construction projects which have contributed to the half year results include a £64m contract from hub South West and South Ayrshire Council to build two new school campuses, and the team has also handed over the £20m Woodside Health & Care Centre in Glasgow city centre.
The company also retained its place on the four-year £1bn South East & Mid Wales collaborative construction framework (SEWSCAP), having been appointed to all four lots it tendered for. They have also been reappointed to the Southern Construction Framework (SCF) across three lots that will deliver up to £5.25bn of public sector construction work across the south of England over the next four years.