Morgan Sindall posts strong half-year results
The construction group recorded revenues of £2.2bn and pre-tax profits of £70.1m during the six months ended 30 June.
Morgan Sindall is ahead of where it expected to be halfway through 2024 and well up year-on-year. The same period in 2023 saw the firm report turnover of £1.9bn and pre-tax profit of £58m.
Today’s results show a 14% revenue increase and a 17% jump in profit year-on-year.
The strong set of half-year results follow on from a bumper 2023 when Morgan Sindall reported record revenues in excess of £4bn, while pre-tax profit rose almost 70% compared with 2022.
Chief executive John Morgan is bullish about the future.
“The challenging market conditions that we experienced in 2023 are easing, as we continue to make significant strategic and operational progress across the group and remain well positioned to support the government’s affordable home and social infrastructure plans.
“Our balance sheet, supported by a substantial average daily cash position, has enabled us to focus on making the right decisions to drive for long-term sustainable growth while also supporting the returns to shareholders in the period.”
He added: “Following our strong trading performance in the first half, combined with the high-quality secured order book and visibility for the rest of the year, we now expect to deliver a result for the full year which is slightly ahead of our previous expectations.”
Lovell Partnerships, one of several divisions that make up Morgan Sindall Group, has “benefited from a modest improvement in the housing market since the start of the year”, according to the group.
Lovell increased operating profits by 16% year-on-year to £11.7m during a period which saw the housebuilder complete the final phase of the 16-year Miles Platting urban renewal project in Manchester.
In the North East, Lovell is on site delivering the 124-home Cornish Park development in Spennymoor, Durham.
Lovell has also secured planning approval for 32 new homes in Whitburn, South Tyneside, with work due to start on site in the second half of the year.
As for Muse, Morgan Sindall’s urban regeneration division, the completion of Greenhaus in Salford, the country’s largest Passivhaus scheme, and Eden, an office project boasting a striking living wall, were two of the period’s highlights.
While almost 70% of Muse’s projects are in the North West, the developer is also active on the other side of the Pennines in Bradford, Stockton, and Rotherham and is looking to grow its presence in Yorkshire and the North East.
Muse recorded an operating profit of £500,000 for the period, down from £6m year-on-year.
Morgan Sindall Construction increased its revenue by 10% to £519m compared to the same period last year, while operating profit also rose; up £18% to £14.1m.
The contractor is also off to a flying start in the second half of 2024, securing the contract to deliver a £65m education campus in Blackpool.
Morgan Sindall’s share price has risen 5% since the Stock Exchange opened this morning to 2,914.52p.
