For the year to 31st December 2020 Morgan Sindall generated revenue of 拢3,034m (2019: 拢3,071m). Pre-tax profit down 31% to 拢60.8m (2019: 拢88.6m)
Chief executive John Morgan said that the company had proved resilient in the face of the challenges and an 拢8bn order book left the business well-positioned for the years ahead.
Strategies remain unchanged, he said, which for the Construction & Infrastructure division means staying 鈥渇ocused on contract selectivity and risk management, operational delivery and developing long term relationships with its clients鈥�.
However, it hopes to raise profit margins in infrastructure works.
The medium-term target for Construction remains to deliver a consistent operating margin within the range of 2.5%-3.0%. Infrastructure's medium-term target is to achieve an operating margin of 3.5%, which is an increase on its previous target from 3.0%.听 Progress towards these targets is expected in 2021.
Chief executive John Morgan said: 鈥淲hilst the year has been dominated by the Covid-19 pandemic, these results reflect the resilience across the group and the benefits of actions taken in recent years to maintain contract selectivity, further improve payments to our supply chain and maintain a strong cash position at all times.
鈥淭hroughout the year, the business has had to adapt quickly and decisively to the continually changing external environment. I would like to sincerely thank all our employees for their commitment and dedication throughout.听 I am extremely proud of the way our people have stepped up in these adverse circumstances.听听
鈥淒espite the differing challenges each division faced, the group has continued to make strategic and operational progress. Again, we have an improved cash position and have further strengthened our balance sheet, allowing us to make the right decisions and actions for the long-term benefit of the business.听 Our strategy remains the same, based on organic growth and operational improvement in markets geared towards future demand for affordable housing, urban regeneration and infrastructure and construction investment. We welcome the government鈥檚 continued support for our activities and the recognition of the industry as a key driver for economic stability and recovery.鈥�
He concluded: 鈥淭he size and quality of our growing secured workload at well over 拢8bn leaves us well-positioned for the future and we are on track to deliver a result which is materially ahead of our previous expectations and slightly ahead of that delivered in 2019.鈥澨�
Morgan Sindall 2020 headline results by business segment
| 听 | Revenue | Operating Profit/(Loss) | Operating Margin | |||
|---|---|---|---|---|---|---|
| 听 | 拢尘 | Change | 拢尘 | Change | % | Change |
| Construction & Infrastructure | 1,637 | +10% | 35.7 | +11% | 2.2% | - |
| Fit Out | 700 | -17% | 32.1 | -13% | 4.6% | +20bps |
| Property Services | 112 | -3% | 1.0 | -77% | 0.9% | -280bps |
| Partnership Housing | 441 | -14% | 16.1 | -12% | 3.7% | +10bps |
| Urban Regeneration | 123 | +3% | 9.2 | -53% | n/a | n/a |
| Investments | 34 | n/a | (6.9) | n/a | n/a | n/a |
| Central/Eliminations | (13) | 听 | (18.7) | 听 | 听 | 听 |
| Total | 3,034 | -1% | 68.5 | -26% | 2.3% | -70bps |
Morgan Sindall also reported some social results as well as financial. Some progress has been made in improving diversity within the business, it said, and the representation of people from a Black, Asian and/or Minority Ethnic (BAME) background has increased from 13.6% to 15% during 2020. But female representation has remained static at 24%. Morgan Sindall鈥檚 2020 median gender pay gap is 29.10%6 (2019: 31.2%), reflecting a higher number of senior male employees in the company. Women make up 10% (2019: 9%) of the upper pay quartile compared to 40% (2019: 37%) in the lower quartile.
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