Partly Cloudy

Partly Cloudy

max temp: 13°C

min temp: 4°C

ESTD 1874 Search

East Anglia: Half-year profits down 8% at construction firm Morgan Sindall

14:00 05 August 2014

John French, CEO of the Adapt Low Carbon Group (Left) and Steve Brock, Contracts Manager for Morgan Sindall (right)

John French, CEO of the Adapt Low Carbon Group (Left) and Steve Brock, Contracts Manager for Morgan Sindall (right)

Archant

Construction firm Morgan Sindall said half-year profits were down 8% to £14.2million despite an increased contribution from its urban regeneration arm.

shares

The trend is expected to continue into the second half, accompanied by continued margin pressure in the construction and the affordable housing divisions.

The company experienced a 2% fall in revenues – from £1,019m in 2013 to £998m – while operating profits before amortisation and exceptional operating items dropped from £16.2m to £15.2m over the same period.

But the business is on course to bounce back next year after posting an increased order book of £2.7bn – up 14% on 2013.

Elsewhere, sister company Lovell said the government’s Help to Buy scheme had instilled more confidence into the housing market and helped boost sales.

It comes as housebuilding surged at its fastest pace for more than a decade last month to trigger record hiring in the construction industry, according to a closely watched survey.

The home building market grew at its steepest level since November 2003, driven by strong demand for new housing projects, according to July data from the Markit/CIPS UK Construction PMI report.

Overall, the index edged down to 62.4, down from 62.6 in June, but activity remained well above the 50 level that divides growth from contraction and was above City expectations of 62.

The data showed that construction activity has grown for 15 consecutive months and that hiring in the sector grew at its fastest level since the survey began in April 1997.

Graham Shennan, managing director of Morgan Sindall, said: “Despite the challenging market conditions persisting into 2014, Morgan Sindall has maintained its ability to secure important contracts and framework wins across the broad range of sectors in which we operate.

“We remain well positioned to capitalise on further opportunities throughout the remainder of the year.”

The company, which has offices on Thorpe Road, Norwich, recently finished an £11.5 million contract to construct the flagship Centrum building at the Norwich Research Park.

And last month it completed the first concrete pour at the £11.6m Enterprise Centre project at the University of East Anglia.

shares

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

The scene of a thatch fire in Stoke-by-Nayland

A picturesque country cottage is still standing today despite a fire ripping through its thatched roof.

An Abellio Greater Anglia train

Rail services between London Liverpool Street and Norwich have been cancelled after a train fault at Diss.

Colchester Half-Marathon. Starting and finishing at Weston Homes Community Stadium.

Competitors braved the dismal morning weather today to take part in the Colchester Half Marathon.

The scene after the thatched roof fire in Stoke by Nayland - Picture credit - Suffolk Fire and Rescue Service

Ten fire crews tackled a thatched roof blaze in a Suffolk village overnight.

Sir John French: a colourful character and respected soldier

We’ve heard about the Suffolk men who fought at the battle of Neuve Chapelle.

Ipswich Crown Court

A 19-year old man who met up with a 13-year-old girl and exchanged text messages with her despite being given a police caution for kissing her several months earlier has been sentenced to 21 months youth detention.

St Edmundsbury Cathedral overlooking colourful displays in the Abbey Gardens

Suffolk’s most important religious building has been awarded a £300,000 Government grant to pay for urgent roof repairs.

Josephine Murphy

An 86-year-old woman who had gone missing from Clacton has been found safe and well

Aftermath of a barn fire in Holton.

A television antiques expert has appealed for help rebuilding his eco-friendly arts centre in Suffolk after a major blaze destroyed the historic sawmill that was to be its showroom and workshops.

Most read

Most commented

Topic pages