Morgan Sindall has reported record results, with trading “significantly ahead” of pre-pandemic 2019 levels.
The construction and regeneration group reported revenue of £3.2bn, up by 6% on 2020 and pretax profit up by 100% to more than £131m.
The results were driven by its construction and infrastructure division, where operating profit grew from £35.7m to £58.1m. Its social housing division, Partnerships Housing, also performed strongly, with profit doubling to £33.2m, and its urban regeneration business delivered a 38% increase in profit to £12.1m.
Chief executive John Morgan said: “2021 has been an excellent year for the group, with progress across the board. Our record results reflect the high quality of our operations and the huge talent and commitment of our people.
“The group is in its best shape ever. Our strategic focus on construction and regeneration is driving positive momentum across the group and is enabling us to upgrade our divisional medium-term targets today, which provide the framework for our next stage of growth.”
The firm said key contributors to the performance of its regeneration business were profit and development fees generated from the Salford Central regeneration scheme, being delivered by the English Cities Fund joint venture with Legal & General and Homes England, the delivery of 520 new homes at New Victoria in Manchester, and completion of the first phase at Hale Wharf in Tottenham, N17.
During the year, the firm has also been appointed preferred development partner to West Sussex County Council to deliver Horsham Enterprise Park, a new, 18.5-acre neighbourhood on a former Novartis site that will provide up to 270,000 sq ft of offices, research and development facilities, an “enterprise hub”, up to 300 new homes (35% affordable) and local amenities.
Morgan Sindall has also been chosen by Barnet Council to develop Bunns Lane car park, NW7, as 130 homes for rent (50% affordable), commuter parking and retail and leisure space.
The division’s development portfolio comprised 14 projects on site at the year-end across 11 developments, totalling £980m in gross development value, with a further 17 projects expected to start on site in 2022.
At the year end, the division’s regeneration order book amounted to £2.6bn, a reduction of 12% on the prior year end.
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