With Galliford Try substantially shrunk by the sale of its house-building interests to Bovis and with Interserve also shrinking, Morgan Sindall now firmly asserts itself as number three behind Balfour Beatty and Kier.
For the full year 2019 Morgan Sindall Group gew revenue by 3% to 拢3,071m (2018: 拢2,972m). Profit before tax was up 10% to 拢88.6m (2018: 拢80.6m).
Average daily net cash increased to 拢109m (2018: 拢99m) and the year-end net cash position was 拢193m. Secured workload in the order book was up 14% during the year to 拢7.6bn.
Construction & Infrastructure revenue increased by 11% to 拢1,486m and 鈥� with an increase of 20bps in the operating margin, up to 2.2% 鈥� operating profit was 20% higher at 拢32.3m.
Fit Out revenue was up 1% to 拢839m but 鈥榓 more competitive tendering environment鈥� pushed operating profit down 16% to 拢36.9m was 16%. The operating margin remained at 4.4%.听听
Property Services revenue increased by 15% to 拢115m and operating profit more than doubled to reach 拢4.3m.
Partnership Housing contributed an operating profit of 拢18.3m, up 50% on 2018鈥檚 result, while Urban Regeneration was steady with a 拢19.4m contribution.
Chief executive John Morgan said: "These strong results reflect the high quality of our operations and are testament to the work and commitment of all our people. Our strategic focus on construction and regeneration underpins the positive momentum across the Group and provides the platform for future progress.
鈥淥ur balance sheet remains a significant differentiator allowing us to make the right long-term decisions for the business. With our average daily net cash position further increasing in the year, we have the flexibility to continue being highly selective with our bidding while also investing in our regeneration activities.
鈥淏oth the volume and the quality of our secured workload have increased in the year leaving us well-positioned for the future.听 We are confident of another good year of progress in 2020 and the group is in a strong position to deliver on its expectations."
Morgan Sindall is also getting better at paying its suppliers, it seems. Construction & Infrastructure, the largest division, improved its average time taken to pay invoices to 32 days, with 97% of invoices paid within 60 days. 鈥淭he group's relationships with its supply chain partners are of strategic importance and key to the group's future success, and payment practices will continue to be an area of focus in years ahead,鈥� the company said.
Morgan Sindall Group headline results by business segment
| 听 | Revenue 拢m | Change | Op. Profit/(Loss) 拢m | Change | Op. Margin % | Change |
|---|---|---|---|---|---|---|
| Construction & Infrastructure | 1,486 | +11% | 32.3 | +20% | 2.2% | +20bps |
| Fit Out | 839 | +1% | 36.9 | -16% | 4.4% | -90bps |
| Property Services | 115 | +15% | 4.3 | +115% | 3.7% | +170bps |
| Partnership Housing | 513 | -1% | 18.3 | +50% | 3.6% | +120bps |
| Urban Regeneration | 119 | -36% | 19.4 | -1% | n/a | n/a |
| Investments | 8 | n/a | (2.4) | n/a | n/a | n/a |
| Central/Eliminations | (9) | 听 | (15.7) | 听 | 听 | 听 |
| Total | 3,071 | +3% | 93.1 | +9% | 3.0% | +10bps |
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