Morgan Sindall revenue nudges £2bn in H1
The property giant increased turnover by 14% compared to the previous six months thanks largely to a strong performance from its fit-out division.
While revenue reached £1.9bn, Morgan Sindall Group also increased its profit in the half year ended 30 June 2023. The company made £59.8m before tax, a 10% increase compared to the second half of 2022.
Morgan Sindall ended the period with net cash of £263m, down £11m compared to the previous six months.
Despite market headwinds, the group’s chief executive said the firm is on course for a record year.
“Although the wider economic backdrop remains challenging, conditions have generally eased across many of our markets as the year has progressed,” said John Morgan.
“Our strong balance sheet, with a substantial net cash position, allows us to continue operating efficiently and effectively and to focus on making the right decisions to drive for long-term sustainable growth.”
The group’s fit-out contractor Overbury contributed in a big way to the record half-year results. The company recorded revenues of £498m, the highest turnover of all the group’s divisions.
Overbury’s profits also jumped by 43% to £30.4m in the period. Among the company’s projects is the fit-out of Roku’s 81,000 sq ft office at Circle Square in Manchester.
Morgan Sindall Construction has also had a good six months, increasing turnover by 20% to £470m with profits rising 6% to £12m.
Morgan Sindall’s regeneration outfit Muse has had a successful six months in terms of winning work.
The company was selected as development partner to deliver 2,000 new homes in Oldham, while The English Cities Fund – its joint venture with Homes England and Legal & General – was appointed by the Stockport Mayoral Development Corporation to deliver the 1,200 home Stockport 8 transformation.
During the period, construction started on a 215,000 sq ft regional HQ for the civil service in Blackpool town centre, as part of its £350m Talbot Gateway regeneration.
Muse’s revenue dropped by 24% to £96m during the first half of 2023, while its operating profit decreased by 18% to £6m.
Muse’s order book and forward pipeline look healthy, with 19 projects on site totalling £1.34bn. Its forward pipeline stands at £1.7bn.
“We’re focused on creating sustainable places that really matter to people, which are both inclusive and leave a positive legacy in communities for generations to come,” said Muse’s North West managing director Phil Mayall.
“We’ve had a strong start to the year as we continue to deliver people-focused regeneration right across the North West. We have continued, alongside our joint venture partners, to expand our reach, being named as preferred developer on two new major projects and working with new local authority partners, all of which is a clear endorsement of our track record and the tenacity and passion of our team.”
