Firm ups interim dividend by nearly a quarter as it posts first half profits higher than predictions, boosted by margin improvements
Morgan Sindall outperformed its own profits forecast for the first six months of the year, boosted by margin growth in its fit out arm and profit recovery across its construction and infrastructure operation.
The firm posted total revenues for the six months to 30 June 2017 of 拢1.3bn, up 14%, and pre-tax profits of 拢23.7m, up 47%. Last month it predicted a .
The company said it had seen an 鈥渆xcellent performance鈥� from its fit out division, with revenues coming in at 拢339m, up 15%, and adjusted operating profit rising 27% to 拢14.6m, with margins up to 4.3% from 3.9% in the same period last year.
Operating margins in its construction and infrastructure operation grew from 0.5% to 1.1%, with an adjusted operating profit of 拢7.6m, up 138%, on turnover of 拢694m, up 13%.
The firm鈥檚 partnership housing business saw revenues up 9% at 拢200m and operating profit up 20% to 拢5.5m. Urban regeneration鈥檚 results were lower due to scheme completions, with 拢2m of operating profit, versus 拢4.9m, on turnover of 拢71m, up 78%.
The group鈥檚 order book rose 5% to 拢3.8bn.
Morgan Sindall鈥檚 chief executive, John Morgan, said the firm had delivered 鈥渁 strong set of results鈥�, while the trading performance, combined with increasing confidence in the business, meant it was increasing the interim dividend by 23% to 16p per share.
Recent wins for the firm included the award of a two-year extension to its three-year Framework Agreement with Western Power Distribution to deliver excavation, cable laying and reinstatement works in the West Midlands region, worth 拢60m, and the appointment to three major Scottish local authority main contractor frameworks 鈥� Aberdeenshire council main contractor framework, the City of Edinburgh鈥檚 first major project main contractor framework and the hub South West Scotland framework.
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