Morgan Sindall Group, today announces half year results for the six months ending 30 June 2013. Revenue for the period was up 2% on the prior year at £1,019 million, while adjusted gross margin reduced 120 base points to 8.1% (half year 2012: 9.3%). This performance reflects competitive market pressures experienced across all divisions. The Group has also taken an exceptional charge of £13.0 million during the period as a provision against amounts recoverable on a small number of older construction contracts.
The Group reports an order book of £3.1 billion, up 1% since year end, supported by a £2.2 billion pipeline of regeneration schemes, up 5% on year end.
Adjusted earnings per share for the period are 31.5p (half year 2012: 38.4p). The interim dividend has been maintained at 12p per share (half year 2012: 12.0p).
“The first half has seen difficult market conditions across all of our markets, with competitive pressures impacting on margins and profitability. The improved positive cash position, however, demonstrates the underlying strength of the business and the benefit of a sustained focus on cash management, which will remain,” says John Morgan, the Group’s Chief Executive. “Looking ahead to the second half, overall market conditions are not expected to significantly improve. The business will continue to focus on cash management and will look to improve the order book selectively, such that it is well-positioned to take advantage of the growth and investment opportunities in its markets as they arise.”