Morgan Sindall turnover tops £3bn

Morgan Sindall Group posted a 3% increase in turnover, to £3.1bn, and 10% rise in pre-tax profits, to £88.6m, in the 12 months to the end of December 2019, driven by strong returns from its fit-out and construction arms.

The group includes Muse Developments, housebuilder Lovell, fit-out contractor Overbury, an investments division, and eponymous contractor Morgan Sindall Construction.

In a statement to the stockmarket, Morgan Sindall said the business had seen “strong profit growth, driven by a strategic focus on construction and regeneration”.

The business was “well set for future growth with high quality order book”, revealing a secured work stream up 14% to £7.6bn.

Morgan Sindall Construction is currently operating at a 2.2% profit margin, and saw profits increase by 30% to £32.3m compared to 2018.

Fit-out division Overbury posted a profit of £36.9m, while partnership housing division Lovell recorded a 50% profit increase to £18m, “reflecting ongoing operational improvement”.

Muse Developments’ contribution to the results held steady, recording a £19.4m profit, slightly under the £19.6m recorded in 2018.

Chief executive John Morgan said: “These strong results reflect the high quality of our operations and are testament to the work and commitment of all our people. Our strategic focus on construction and regeneration underpins the positive momentum across the Group and provides the platform for future progress.

“Our balance sheet remains a significant differentiator allowing us to make the right long-term decisions for the business. With our average daily net cash position further increasing in the year, we have the flexibility to continue being highly selective with our bidding while also investing in our regeneration activities.

“Both the volume and the quality of our secured workload have increased in the year leaving us well-positioned for the future. We are confident of another good year of progress in 2020 and the Group is in a strong position to deliver on its expectations.”

Morgan Sindall has 6,700 employees nationally.

Morgan Sindall has seen its share price increase from 1,106p in October to 1,940p today, after rising 2p this morning following the results. The business is valued at £881m.

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