Construction firm Morgan Sindall has said it expects profit to be “materially ahead” of previous forecasts and slightly ahead of that delivered in 2019, as its order book grows to £8.3bn.
Morgan Sindall’s operating profit fell by 26% to £68.5m in the year ending December, with revenue dipping by 3% to £3bn. Adjusted pretax profit was down 29% to £63.9m.
However, the group’s secured order book increased by 9% year-on-year. Its balance sheet has also strengthened, with net cash increasing to £333m.
Morgan Sindall’s urban regeneration arm Muse recorded a 3% rise in revenue to £123m, but operating profit fell by 12% to £16.1m.
Muse’s order book was up 4% year-on-year to £2.4bn. Forward funding deals totalling £382m were secured during the year for the final phase at Lewisham Gateway and first residential phase at Manchester’s New Victoria.
Through its joint venture with Legal & General and Homes England – the English Cities Fund – Muse also signed long-term development agreements with Salford City Council, the University of Salford and St Helens Council to deliver new schemes.
Muse has 14 projects on site, with a gross development value of £660m. A further 11 projects are expected to start on site this year.
Matt Crompton, managing director at Muse, said: “2020 was an unprecedented year. Our teams across the business have shown real stoicism, agility and tenacity, working diligently to minimise the virus’s impact on the business and continue to progress our schemes across the UK safely and in line with government guidelines.
“Thanks to the unwavering efforts from colleagues and partners, we remain in a strong position, as we continue to work hand-in-hand to create inspiring new places and spaces; bringing together the best of the public and private sector to drive economic growth, opportunities for local people and social prosperity right into the heart of communities at a time when it’s needed most.
“One of our key objectives for 2021 is to continue to work closely with local authorities to repurpose their towns and cities, but by leading the charge on sustainable, adaptable and complementary developments that will improve places, lives and communities for the future.”
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
