Morgan Sindall “confident of strong performance” following half-year results

Morgan Sindall recently completed restoration works on Ballater Old Royal Station in Aberdeenshire

MORGAN Sindall has announced its half-year results, with profits up over a quarter on last year’s figures. The group has said it is “confident of a strong performance” for the second half of 2018, with results expected to surpass expectations.

The group reported an adjusted operating profit of £31.9 million, a 28% rise on the previous year’s figure of £24.9 million, with revenue totalling £1,423 million, up 9% from the same period in 2017.

However, the group’s order book has dipped from £3,801 million in 2017 to £3,604 million.

Adjusted earnings per share are up 28% for the period to 55.6p, while the interim dividend has been increased 19% to 19.0p.

John Morgan, Morgan Sindall Group chief executive said, “I am pleased to report another strong set of results, which demonstrate the considerable operational and strategic progress made across the group.

“Fit Out and Construction & Infrastructure have both continued to deliver margin and profit growth, which has been complemented by a good performance from Urban Regeneration. There remain a significant number of opportunities in regeneration and our strong balance sheet and cash position leave us well placed to invest further in this key strategic area.”

He added, “Based upon its current trading pattern and order book visibility, the second half outlook for Fit Out is very positive and as a result of this, the group is on track to deliver a result for the year which is slightly ahead of previous expectations.”

The group, which has bases in Glasgow and Inverness, recently received contracts totalling nearly £6 million from the Highland Council to refurbish and expand seven schools. It also handed over the Ballater Old Royal Station in Aberdeenshire, following restoration works, in July.