Construction and regeneration group Morgan Sindall has seen margins remain steady in its construction and infrastructure division as it posts falls in revenues and profits for the year ended 31 December 2012.
Operating profit for the construction and infrastructure division stood at £19.7 million, down from £21.1 million in 2011, on revenue of £1.17 billion (2011: £1.27 billion).
For the Group as a whole, revenue stood at around £2 billion, down 8% year on year, while profit before tax dropped 15% to £34.2 million. However, this drop was due to a one-off £10 million reorganisation cost in 2012 – profit before tax, amortisation and non-recurring items actually grew 4% to £47.1 million.
The steady margin of 1.7% in the construction and infrastructure division was due to rebalancing workload towards growth infrastructure sectors and construction sectors, Morgan Sindall said.
The Group also said it had strengthened its leading reputation in the rail, highways, energy and water markets.
The order book for the division stood at £1.5 billion, slightly down on last year’s figure of £1.6 billion. The forward order book for the Group is £3.1 billion (2011: £3.4 billion).
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John Morgan, Chief Executive, commented:
“2012 has seen a solid performance in what has been a very tough market. The newly structured Board is focused on managing the business tightly to ensure we emerge from the downturn in a strong position to take advantage of the opportunities we believe lie ahead.
“Our exposure to infrastructure continues to grow, and we see further opportunity to leverage our strong track record and gain market share. The momentum in our regeneration pipeline reinforces our confidence that returns from our investment will start to increase over the medium term and deliver superior returns.”
The Group said it will focus on growing infrastructure sectors where there are high barriers to entry and it expects to market to remain “challenging” in short term due to the delay in economic recovery.
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