Morgan Sindall records £15m profit

Morgan Sindall Group, parent of affordable housebuilder Lovell, fit-out firm Overbury and developer Muse, has returned to profit in its latest half-year report, and hopes to deliver above expectations in its full year results.

In its last financial statement in December, Morgan Sindall recorded a £15m loss after being hit by exceptional items of £49m. According to the statement released to the stock market today has posted a pre-tax profit of £15.4m for the period to 30 June.

Profits increased across most divisions of the business; Overbury was up 11% to £11.5m, Morgan Sindall Construction up to £3.2m, and Lovell up 21% to £4.6m. Muse Development recorded a slight dip compared to the same period last year, going from £5m to £4.6m.

John Morgan, chief executive, said: “The Group has delivered strong profit growth in the first half, with an improved cash position and lower average net debt across the period. All divisions have contributed, demonstrating the strategic and operational progress made across the group over the last few years.

“The EU Referendum result has introduced some uncertainty into the markets in which we operate and it’s still too early to determine what the potential impact on the group will be in the medium and longer term. For the current year, however, based upon current trading patterns, our high quality secured order book and the visible pipeline of opportunities, the group is on track to deliver a full year result slightly above its previous expectations.”

Shares in Morgan Sindall were up this morning by 35.5p to 606p.