Morgan Sindall Group has delivered a record performance in the first half of 2023, driven mainly by a strong performance from the Fit Out division. Group revenue increased by 14% up to £1,935m while adjusted profit before tax increased 10% to £59.8m. In addition, the Group’s balance sheet remains strong, with net cash at the period end of £263m.
The positive momentum across the Group is driven by a high-quality and substantial order book of £9.1bn, up 7% on the year-end position, and which spans a number of sectors across the built environment.
“We have enjoyed a strong start to 2023 and are pleased to have made a significant contribution to Morgan Sindall Group’s results."
Simon Smith, managing director for Morgan Sindall Infrastructure, said: “We have enjoyed a strong start to 2023 and are pleased to have made a significant contribution to Morgan Sindall Group’s results. I am proud of the commitment of our people as we continue to drive operational excellence across our business and make great progress towards our net-zero targets.
“We now look forward to maintaining positive momentum to full-year results. As always, our commitment to being a responsible business is paramount as we continue to work collaboratively with our customers and supply chain family, maintain a selective approach to work-winning and leave a legacy for the communities we’re working in as we develop and enhance the UK’s infrastructure.”
Morgan Sindall Infrastructure delivered strong revenue growth in the period, increasing 15% to £428m (HY 2022: £372m), at an operating margin of 3.7% (HY 2022: 3.4%), with operating profit up 24% to £15.9m (HY 2022: £12.8m).
Morgan Sindall Infrastructure key figures
- Revenue: £428m
- Operating profit: £15.9m
- Order book: £1,628m
Sector overview
A12 Concrete Roads programme
In highways, the division started work on the £66m A12 project in Essex and continues to work on the A11 scheme in Norwich. These schemes form part of National Highway’s Concrete Roads Programme - Reconstruction Works Framework, a four-year programme worth c£130m to repair or replace the concrete surface of motorways or major A roads in England. The announcement by the UK Government to remove new smart motorways from its road investment strategy has not impacted our future order book, and we continue to deliver safety-critical works under the Smart Motorways Alliance.
In nuclear, we continue with decommissioning works for Sellafield Ltd on the Infrastructure Strategic Alliance and on the £1.6bn Programme and Project Partners contract. Work continues on the 10-year Clyde Commercial Framework for the Defence Infrastructure Organisation and on the D58 facility for BAE Systems.
VISTA - Killin Energy
In energy, the division continues work on the Dinorwig and ZZA route projects as part of the RIIO-2 electricity construction EPC (Engineer, Procure and Construct) framework for National Grid. In addition, the division continues to deliver several schemes as part of Scottish & Southern Electricity Network’s (SSEN) RIIO-2 framework. The framework involves the construction, refurbishment and decommissioning of overhead lines, underground cable systems and substations operating between 33kV to 400kV across SSEN’s transmission network.
In water, we continue to deliver environmental improvement projects and wastewater treatment upgrades as part of the long-term AMP7 framework with Welsh Water and on the Thames Tideway ‘super sewer’ project to expand London’s sewer network and help prevent pollution in the Thames.
Parson's Tunnel
In rail, Infrastructure was awarded the £88m Beckton Depot improvements project and continues to deliver the Surrey Quays project, both projects are part of the London Rail Infrastructure Improvement Framework for Transport for London. In addition, work continues on several schemes for Network Rail, including the Parson’s Tunnel rockfall shelter extension under the South West Rail Resilience Programme and Bangor to Colwyn Bay, as part of the CP6 Wales and Western framework. We continue to deliver the Northumberland Line extension project for Northumberland County Council and several access-for-all schemes with Merseyrail.
You can view full details on the half year results from across the Group at the Morgan Sindall Group website.