For the year to 31 December 2011, Morgan Sindall鈥檚 revenues were up 6% to 拢2,227m. Pre-tax profit was down 2% to 拢40.0m. Profit before tax, amortisation and non-recurring items was down 12% to 拢45.3m, from 拢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 拢3.4bn is down marginally on the 拢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 拢21.1m from revenues of 拢1,268m in 2011, compared to 拢26.9m from 拢1,250m in 2010. Order book here is down from 拢2bn to 拢1.6bn.
Fit-out revenues were up from 拢387m in 2010 to 拢462m in 2011, thanks to growth in retail banking, technology and education sectors, but operating profit fell here too from 2010鈥檚 拢14.8m to 拢12.4m in 2011. Fit-out order book was up from 拢180m at start of the year to 拢216m by the end.
The urban regeneration division, Muse, saw revenues increased fomr 拢46m to 拢57m and operating profit nearly double from 拢2.0m in 2010 to 拢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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