Morgan Sindall profits surge as revenue approaches the £3bn mark

Profits at the infrastructure group Morgan Sindall have soared by nearly half with its infrastructure and construction arm of the company recording a 129% rise.

The UK company say its profits increased by 48% from £43.9m to £64.9m in the 12-month period to December 2017 which is also thanks to its office installation and refurbishment business ‘Fit Out’ performing impressively.

Overall, Morgan Sindall boosted revenue to £2.7bn for the year to 31 December 2017, which is a 9% increase from the £2.5bn reported in 2016. The construction and infrastructure division has seen a particular boost with operating profit more than doubling from £9m to £20m.

It’s chief executive John Morgan is also predicting a similar strong year ahead as the company builds its cash reserves. 

"These strong results are evidence of the significant operational progress being made across the group and are a testament to the high quality and commitment of our people,” he added. "Our positive cash generation and increase in average net cash in the year has further strengthened our balance sheet and provides us with the flexibility to invest in our regeneration activities whilst allowing us to continue being highly selective with bidding in our construction activities. Looking ahead to 2018, we expect continued margin progression in construction and infrastructure, another strong performance from Fit Out, further growth from urban regeneration and partnership housing and positive contributions from property services and investments.”

Morgan Sindall's order book has also been boosted by 6% to £3.8bn and margins have doubled to 1.5% meaning bosses are confident are reaching targets for construction and infrastructure.

Pat Boyle, the company's managing director for construction, said: "This sound financial performance is a result of our commitment to delivering high quality projects and exceptional customer service. With this continued approach, we are optimistic for the future and look forward to building on this success in 2018."

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