UK-based contractor Morgan Sindall has reported a decline in its adjusted operating profit for 2014 to £28.9 million (€39.2 million), against £33.6 million (€45.6 million) the previous year, amid “challenging trading conditions”.
However, it reported improved sales of £2.2 billion (€2.99 billion) for the full-year ended December 31, 2014, compared to £2.1 billion (€2.8 billion) for 2013.
In terms of its order book, there was an improved position of £2.7 billion (€3.7 billion) at the end of 2014, from £2.4 billion (€3.2 billion) at the end of 2013.
The results followed a profit warning issued last October, which said that despite positive performance in its affordable housing, urban regeneration, fit out and infrastructure operations, the firm had been adversely impacted by delays to some contracts in London and the south of England.
In its latest trading update, chief executive John Morgan warned that lower returns in the construction and infrastructure sector were expected for at least the next six months. He forecast that regeneration schemes and investment programmes would deliver company growth in 2015.
He said, “The overall group result for the year is disappointing, having been adversely impacted by a small number of construction contracts.
“The progress in urban regeneration is particularly pleasing as it supports our long-term regeneration strategy and provides a positive platform for further investment in regeneration.”