Chief executive lays out plans for future of firm as company鈥檚 annual results show disappointing performance from affordable housing arm
Morgan Sindall expects to make up to 拢15m in annual savings through its restructure, which saw the firm close a number of regional offices last year and reshape its business around four regions.
Speaking to 黑洞社区 after the contractor announced its results for the year ending 31 December 2012, chief executive John Morgan (pictured) said the restructure would lead to 拢13m-拢15m in annualised savings, as well as ensuring the firm was a 鈥渕ore flexible business that is able to move with market demands鈥�. The restructure cost the business 拢10m in redundancy payments and property costs.
He said the firm had no immediate plans to engage in further restructuring, but was 鈥渁lways keeping an eye on what鈥檚 happening in the market鈥�.
Morgan said he was broadly pleased with the results (see box), but that the performance of the affordable housing arm - which saw revenue fall 17% to 拢386m and profit down 38% - was the main disappointment.
He said the firm wanted to improve this part of the business by focusing on large, mixed-tenure schemes.
He said the construction margin of 1.7% was 鈥渕ore likely to worsen than get better in 2013鈥� but expected margins in the fit-out business and the affordable housing arms to improve.
Morgan, who returned to the role of chief executive last November, said he was focused on 鈥渢ighter鈥� implementation of the firm鈥檚 strategy. He added: 鈥淭he biggest thing I鈥檓 looking to do is we鈥檝e got lots and lots of businesses where, on their own, they compete very nicely in their markets.
鈥淏ut by pulling two or three of them together for certain pitches we can actually punch well above our weight and win jobs where other competitors can鈥檛 put forward such strong propositions.鈥�
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