The British construction and design firm Morgan Sindall has reported a 4 per cent rise in underlying profits to £20.3m for the six months ended 30 June (2011:£19.5m). The results were boosted largely by a sharp rise in urban regeneration profits and improved returns in its investment division.
Affordable housing delivered an operating profit of £7.5m (2011: £8.3m), on revenue of £202m (2011: £228m), while the urban regeneration division delivered an operating profit of £1.5m (2011: £1.0m).
The investments division recorded an operating profit of £1.3m (2011: loss of £2.1m), on revenue of £1m (2011: £1m).
Revenues decreased by 8 per cent to £1bn (2011: £1.09bn), primarily due to reductions in the fit-out, affordable housing and construction and infrastructure divisions, offset by a small increase in revenue in urban regeneration.
Gross profit was £92.7m (2011: £100.9m), while total administrative expenses were £77.1m (2011: £84.4m). Underlying operating profit prior to the amortisation of intangible assets and non-recurring items was £20.8m (2011: £19.6m).
John Morgan, executive chairman of Morgan Sindall Group, said:
We have delivered a solid performance over the first half of 2012 and we are on track to meet our expectations for the full financial year. Despite the challenging economic environment, we are encouraged by the continuing opportunities in growth infrastructure sectors and we remain committed to investing in our regeneration business to drive growth over the medium to long term.
Whilst we expect market conditions to remain challenging in the short term, we believe our strong track record of successful delivery and our ability to provide our customers with creative, integrated solutions leaves us well positioned for the future.