For the year to 31 December 2011, Morgan Sindall’s revenues were up 6% to £2,227m. Pre-tax profit was down 2% to £40.0m. Profit before tax, amortisation and non-recurring items was down 12% to £45.3m, from £51.3m in 2010.
The company has been pursuing a strategy of reducing its reliance on public sector work, given that public spending has been cut. In 2009, 70% of work was for public sector clients; last year it was 50%. A further reduction is expected in 2012.
The group order book of £3.4bn is down marginally on the £3.6bn this time last year.
Profitability in the construction and infrastructure division deteriorated, with margin reduced from 2.2% to 1.7%. The division made an operating profit of £21.1m from revenues of £1,268m in 2011, compared to £26.9m from £1,250m in 2010. Order book here is down from £2bn to £1.6bn.
Fit-out revenues were up from £387m in 2010 to £462m in 2011, thanks to growth in retail banking, technology and education sectors, but operating profit fell here too from 2010’s £14.8m to £12.4m in 2011. Fit-out order book was up from £180m at start of the year to £216m by the end.
The urban regeneration division, Muse, saw revenues increased fomr £46m to £57m and operating profit nearly double from £2.0m in 2010 to £3.9m in 2011.
Executive chairman John Morgan said: "We are pleased to report a solid set of results for 2011 in line with expectations, despite continued challenging markets. We are benefiting from being a broadly based business, offering creative, integrated solutions for increasingly complex projects, with a track record of delivery. We are focused on maximising opportunities in sectors we believe offer the most growth and reward. We continue to invest for sustainable growth in the medium-term whilst maintaining a strong balance sheet and dividend."
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