Morgan Sindall are surging forward after the Covid-19 pandemic, with trading also “substantially ahead of pre-pandemic levels.”
Results for the half-year ended 30 June 2021 show revenue of £1.559m, up 14% on the same period last year. Pre-tax profit leapt a staggering 238% to £53.1m, compared to £15.7m for the same period last year.
Net cash leapt to £337m, an increase of £191m compared to £146m net cash for the same period last year. Interim dividends also leapt 43% to 30p per share. The company is also well positioned for future growth, with a secure future workload of £8.3bn.
Divisional highlights included an operating margin of 2.9% in Construction & Infrastructure, with operating profit up to £22.6m (compared to HY 2019: £13.9m, HY 2020: £11.5m).
The company also saw a positive contribution from Urban Regeneration, with long-term regeneration schemes progressing well and seeing an operating profit of £8.7m (HY 2019: £8.3m, HY 2020: £2.2m).
John Morgan, Morgan Sindall chief executive, said: “We’ve had a very strong first half in which we’ve upgraded our profit guidance three times. We continue to make significant operational and strategic progress across the group. With such positive momentum across all our activities, I am excited by the opportunities ahead.
“As ever, we are extremely focused on our cash generation and cash position. Maintaining a strong balance sheet including a substantial net cash position provides a significant competitive advantage for us. It enables us to continue making the right decisions for the business and to best position us in our markets for continued sustainable long-term growth. Today’s results, combined with the current visibility for the rest of the year, gives us every confidence of another strong performance by the group in the second half.”