“Disappointing” year end results for Morgan Sindall

MORGAN Sindall Group plc has announced “disappointing” preliminary results the year ended 31 December 2014.

While trading conditions remained challenging, the construction and regeneration group delivered an operating profit of £26.5 million before adjustments (2013: £16.2 million) on revenues of £2,220 million (2013: £2,095 million). Adjusted operating profit before intangible amortisation and exceptional items was £28.9 million (2013: £33.6 million). The Group finished the year with a net cash position of £56 million (2013: £70 million). Adjusted earnings per share were 46.7p (2013: 60.9p). The dividend for the year is unchanged from 2013 at 27.0p per share. The Group’s committed order book is up 11 per cent at £2.7 billion (2013: £2.4 billion).

“Whilst there have been strong performances from Fit Out and Urban Regeneration, the overall Group result for the year is disappointing, having been adversely impacted by a small number of construction contracts in Construction & Infrastructure. The progress in Urban Regeneration is particularly pleasing as it supports our long-term regeneration strategy and provides a positive platform for further investment in regeneration, leveraging off our existing strong market positions,” said Chief Executive, John Morgan.

“Looking ahead to 2015, lower returns in Construction & Infrastructure are expected to remain for at least the first half of the year, as lower margin construction contracts tendered in 2012-2013 are worked through to completion. However, the continued positive momentum expected within Fit Out, Affordable Housing and Urban Regeneration, together with further investment programmes in regeneration opportunities, and supported by the improvement in the quality of our order book, provides confidence that the Group is well positioned to deliver overall growth in 2015 and beyond.”