Morgan Sindall Group, which operates through five divisions of construction and infrastructure, fit out, affordable housing, urban regeneration and investments, has delivered half year results in line with expectations for the six months ending 30 June 2014.
Against a continued backdrop of challenging market conditions, operating profit before amortisation and exceptional operating items was £15.2 million (2013: £16.2 million) on revenue of £998 million, a 2% decrease over the same period last year (2013: £1,019 million). The Group reports an order book of £2.7 billion, up 14% on the previous year end (2013: £2.4 billion), supported by a £3.2 billion pipeline of regeneration schemes, up 5% from £3.0 billion last year end. Adjusted earnings per share for the period are 28.6p (2013: 31.5p). The interim dividend has been maintained at 12.0p per share (2013: 12.0p).
"The first half has seen an important shift in the balance of our profits, with an increase in the contribution from the Urban Regeneration business. This trend is expected to continue into the second half and beyond and reinforces our long-term strategy of focusing on both Construction and Regeneration activities,” says Chief Executive, John Morgan.
“For the remainder of 2014, the operating environment for general construction is expected to remain challenging with no easing of pressure on margins. However, with continued positive momentum anticipated within both Fit Out and Urban Regeneration, the Group remains on track to deliver results for the full year in line with the Board’s expectations.
“We are encouraged by the improvement in the quality of our order book reflecting the higher level of activity in the market, which positions us well for the medium to long term.”