Mixed results from Morgan Sindall
By Sarah Ann McCay20 February 2014
Morgan Sindall Group has reported a drop in profits but an increase in revenue for the financial year 2013, according to preliminary results.
The UK-based construction and regeneration company reported a gross operating profit of £33.6 million (€41 million) on revenues of £2.1 billion (€2.5 billion). This compared to 2012 figures of gross profit at £48.1 million (€58.4 million) on revenues of £2.05 billion (€2.49 million).
The group’s backlog stands at £2.4 billion (€2.9 billion), up from 2012’s £2.2 billion (€2.7 billion). Growth was also seen in the regeneration and development pipeline, which grew to £3 billion (€3.6 billion) from £2.5 billion (€3 billion) in 2012.
Chief executive John Morgan said that 2013 had seen challenging conditions predominate across most of its markets, with competitive pressures have an impact on margins and profitability.
"Notwithstanding this," he said, "the positive operating cash flow generated by the business has allowed us to make further investment in strategic assets, key skills and resources, which positions the group well to benefit from future growth opportunities."
He said that looking ahead to 2014, although there were signs of improving conditions in some of itsmarkets, it was expected that upward pressure on supply chain costs and skills availability would provide additional management challenges.
"Against this backdrop, we remain confident that our robust order book and on-going disciplined approach to contract selectivity will support the delivery of growth in this year and beyond.”