Morgan Sindall records £2.37bn revenue
The publicly traded company has announced its half-year results for the period up until 30 June, with each of its six divisions contributing to a 7% rise in revenue and a 36% rise in reported pre-tax profit.
London-based Morgan Sindall Group, consisting of Lovell Partnerships, Muse Places, Overbury, and Morgan Sindall Construction, Infrastructure, and Property Services, has also recorded a pre-tax profit of £95.4m – a jump from the previous half-year figure of £70.1m in 2024.
John Morgan, chief executive of Morgan Sindall Group, said the figures show “significant strategic and operational progress across the group”, putting it in a “strong position” to deliver on targets for 2025.
Muse Places
Mixed-use partnerships reported a 56% loss of revenue over the half year, falling from £59m in HY 2024 to £26m in HY 2025.
This is due to increased investment in schemes that have yet to start being delivered and therefore represent future opportunities for the division, demonstrated by the 36% increase in average capital employed by Muse over the last half year.
Muse Places’ order book rose 150% to £4.58bn compared to the last half year, when the figure was £1.83bn.
The regeneration of Wythenshawe’s Civic Centre, and the deal to work alongside Wythenshawe Community Housing Group, as well as the appointment of ECF, Muse Places’ joint venture with Homes England and L&G, by Oldham Council, represent some of these future opportunities.
Blackpool’s Talbot Gateway regeneration, where Muse has delivered a 215,000 sq ft civil service hub and has begun work on another 53,000 sq ft office for the Department of Work and Pensions.
The statement notes: “The level of investment relating to those schemes yet to start on site and future opportunities is likely to result in profit for the year being close to break-even levels.”
Phil Marsden, managing director at Muse North West, added: “By investing in the future, we are helping to create a bedrock for delivery at a significant moment for the region and country.
“As a key regional partner, we are excited to build on this progress, ensuring we continue to deliver high-quality regeneration and placemaking in partnership.”
Across Yorkshire a range of ECF-backed schemes are underway, including the 900-home Bradford City Village, and an agreement between the joint venture and Wakefield Council to bring forward a mixed-use scheme with 2,500 homes to the town.
While in the North East, Muse is also leading on the transformation of the 37-acre Aykley Heads in Durham into a hub for research, enterprise, and collaboration.
Lovell Partnerships
The housebuilder recorded a revenue of £405m, a rise of 6% on the previous half-year results of £381m.
Lovell works with housing associations to deliver and refurbish affordable housing as a contractor and developer. The economy and housing shortage are key to Lovell’s continuing investment.
The partnership is currently delivering six developments in the North West, equating to more than 1,000 homes of varying tenures, including at Signaller’s Croft and Wirral.
In Yorkshire and the North East, some of Lovell’s sites include Morpeth, Ormesby, and Newcastle.
Steve Coleby, managing director at Lovell, said: “The scale and ambition of recent wins reflect our deep-rooted relationships, our capacity to deliver at pace and scale, and our confidence in the future of partnership housing.
“These long-term, multi-site partnerships not only provide stability but also position Lovell as a key delivery partner in helping meet the government’s 1.5m new home target.”
Morgan Sindall Construction
The group’s building arm saw minimal change over the past half year, with revenue rising 1%, roughly £4m, to £523m.
Both “strong momentum in winning new work” and the “significant amount of suitable work available in the market aligned to sectors that the division operates within” contributed to the maintenance of finances.
The report states Morgan Sindall Construction has £1.45bn worth of contracts lined up at the preferred bidder stage, setting the tone for future revenue.
Educational facilities, such as the 750-pupil Star Radcliffe Academy, are the largest market sector for the construction industry, amounting to 45% of contracts.
Morgan Sindall Infrastructure
Infrastructure’s trading performance has led to a 9% decrease in revenue from £520m to £482m.
The firm has £668m worth of contracts at the preferred bidder stage with an £1.87bn order book, which “remains long term in nature”.
Around 98% of the order book is derived from existing frameworks and therefore represents long-term investment commitments.
Overbury and Property Services
Morgan Sindall’s fit-out arm, Overbury, saw a 33% rise in revenue to £838m from £630m, which the firm said is a “market-leading performance”, bolstered by an operating profit of £58.1m.
Property services saw minimal change over the half year, with revenue only rising 1%, hitting £104m.
Morgan Sindall Group’s shares opened at 4,465p and have risen 2.7% to 4,580p, after the unveiling of the half-year results.
