Morgan Sindall swings to profit as all divisions perform well
Construction services group Morgan Sindall swung to a profit in 2016 thanks to a solid performance in all its divisions.
Construction & Materials
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10:19 07/10/24
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Morgan Sindall Group
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10:18 07/10/24
The company made a reported pre-tax profit of £43.9m versus a loss of £14.8m in 2015 when it took a hit from exceptional items related to contract disputes.
Adjusted pre-tax profit rose 32% to £45.3m on revenue of £2.6bn, up from £2.4bn the year before.
Earnings per share were up 34% to 84.7p, the order book was up 29% to £3.6bn and Morgan Sindall declared a total dividend per share of 35p, 21% higher than the previous year.
Operating profit jumped 26% to £48.8m and the company had net cash at year-end of £209m, up £151m from 2015.
Chief executive John Morgan said: "These results demonstrate the considerable strategic and operational progress made in the group over the last few years and the underlying quality of the business.
"The UK is struggling to cope with the increasing demand for affordable housing and there is a clear need for Government to deliver urban regeneration and infrastructure investment to support future economic growth. Morgan Sindall Group has strong established positions in these markets, and the balance sheet and cash position to fund further investment and growth.
"With significant opportunities in Partnership Housing, the continued improvement in operational delivery in Construction & Infrastructure, and the size and quality of our secured order book in Fit Out and elsewhere across the group, we are well-placed to deliver a result for the year which is slightly above our previous expectations."
Numis said the results reflect an attractive combination of market growth and management actions in terms of both the profit & loss and the balance sheet.
At 1120 GMT, the shares were up 8.3% to 980p.