Strong growth in infrastructure partially offsets sharp falls in revenue at fit out and regeneration divisions
Pre-tax profit at construction giant Morgan Sindall fell by nearly a third in 2009 after revenues at its fit out and urban regeneration divisions collapsed in the recession.
Pre-tax profit was 拢44.7m, down 28% on the 拢62.3m recorded in 2008. The company saw revenue fall by 13%, to 拢2.21bn, from 拢2.55bn in 2008.
Turnover fell at all Morgan Sindall divisions, but the dramatic drop in profits was caused largely by the collapse in the fit-out and urban regeneration sectors. Turnover for the fit-out business, which includes Overbury, fell by 39% to 拢291m, with profits of 拢13.8m down 47% on 2008. Profits at the urban regeneration business, Muse, were down by 90% to just 拢0.7m, after revenues fell 62% to 拢32m.
Other businesses performed more solidly, with affordable housing turnover remaining broadly stable at 拢374m (2008: 拢377m). Morgan Est, the firm鈥檚 infrastructure business, was the only division to increase profits, up 19% to 拢17.1m on turnover of 拢770m.
John Morgan, executive chairman, said the results were a 鈥渧ery satisfactory performance鈥� in difficult trading conditions. He said: 鈥淲e remain in a strong financial position and are well placed to take advantage of the opportunities which the market will present.
The markets in 2010 will be similar to those we experienced in 2009 but we remain confident of making good progress throughout the year."
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