Regeneration helps Morgan Sindall rise to challenge

By DOMINIC JEFF
Published on 06/08/2012 09:36

CONSTRUCTION group Morgan Sindall yesterday hailed continued growth in the infrastructure sectors for helping it to improve interim profits against a backdrop of “tough market conditions” .

The firm – which has won a string of high-profile contracts including the fitting out the BBC’s MediaCity offices at Salford, in Manchester – said it was focusing on infrastructure

sectors such as aviation, energy, rail and roads.

It expects land released from the public sector will eventually drive a recovery in regeneration work, although that market was described as challenging in the short-term with little sign of improvement due to the delay in economic recovery.

The company improved its margins to post a 13 per cent rise in pre-tax profits to £18.8 million in the six months to 30 June. Revenues dipped by 4 per cent to £1 billion, with the order book shrinking to £3.2bn from £3.5bn.

Executive chairman John Morgan said: “We have delivered a solid performance over the first half of 2012 and we are on track to meet our expectations for the full financial year.

“Despite the challenging economic environment, we are encouraged by the continuing opportunities in growth infrastructure sectors and we remain committed to investing in our regeneration business to drive growth over the medium to long term.”

Morgan Sindall’s projects in Scotland include a £17m redevelopment of Haymarket station in Edinburgh, the building of a £10m renewable energy centre for Scottish Enterprise in Glasgow and the construction of £35m of housing on the former St Andrew’s College campus in Bearsden with Miller Homes.

More than half of Morgan Sindall’s business comes from construction and infrastructure, where operating profits fell by £1m to £8.5m as a result of downward pressure on prices and bidding margins.