Morgan Sindall Group announces half year results

Morgan Sindall Group plc, the construction and regeneration group, has announced its results today (4 August) for the half year to 30 June 2015.

Against a continued backdrop of challenging market conditions, operating profit before amortisation and exceptional operating items was £15.5 million (2014: £15.2 million) on revenue of £1,152 million, a 15% increase over the same period last year (2014: £998 million). The Group reports an order book of £2.6 billion, down slightly (3%) on the previous year (2014: £2.7 billion), supported by a £3.2 billion pipeline of regeneration schemes (2014: £3.2 billion). Adjusted earnings per share for the period was 24.5p (2014: 28.6p). The interim dividend has been maintained at 12p per share (2014: 12.0p).

“We’ve seen a strong performance from Fit Out in the first half and Urban Regeneration continues to deliver good growth as a result of our focused and long-term investment in the development portfolio,” said Chief Executive John Morgan. “Construction & Infrastructure continues to be impacted by the poor performance of its older and lower margin construction contracts in London and the South and, whilst these are working through to completion, this is happening at a slower rate than previously anticipated which will hold back the divisional performance in the second half of the year. However, it is expected that Fit Out will produce a further strong performance in the second half, with Urban Regeneration and Affordable Housing both making good progress.

“Consequently, the Group remains on track to deliver results for the full year in line with the Board’s expectations and the outlook for 2016 and beyond remains unchanged.”