Morgan Sindall, the construction and regeneration group, has experienced a significant jump in margins as it announces its half-year results
Morgan Sindall Group has delivered profit growth in the first half of this year with adjusted operating profit up 28% to £31.9m on revenue of £1,423m, a 9% increase on the previous half year.
The operating margin in the construction division improved from 1.1% a year ago to 1.7%. This resulted in operating profit of £11.3m, up 49% on last year despite revenue being down 5% from £694m to £662m.
The Fit Out division witnessed another strong start to the year with margins up to 4.4% from 4.3% generating an operating profit of £18.8m from revenue of £426m.
Chief Executive of Morgan Sindall, John Morgan 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.
“Based upon its current trading patterns 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 its previous expectations.”