Morgan Sindall profit builds 10 per cent
The boss of construction group Morgan Sindall has put the company’s profit jump down to long term planning and strong orders.
The company, led by John Morgan, posted adjusted profit before tax at £90.4m, an 11 per cent increase from 2018’s figure of £81.6m.
Dividends rose 11 per cent to 59p per share and revenue grew three per cent from £2.9m to £3m.
“I think we’ve had a very strong strategy for the last six years which means the company gets stronger and stronger,” Morgan said.
Shares eked out a 0.6 per cent gain by the end of trading to 1,950p.
Morgan Sindall works across the construction sector in areas including urban regeneration, office fitting, construction and infrastructure.
It also has contracts with the Ministry of Defence to build service accommodation on Salisbury Plain and construct infrastructure at the submarine yard in Barrow in Furness.
Morgan said the company’s focus on long term projects, enabled by its significant cash flow have been key to the success.
“How can we get long term work streams over trophy jobs?” he said.
Morgan singled out its partnership housing unit as being well positioned for future growth.
Building homes for local authorities, housing associations in addition to the private sector, its operating profit rose by 50 per cent to £18.3m.
The company reported a rise in secured workload, up 14 per cent to £7.6bn.