Morgan Sindall Group PLC (LON:MGNS) have given shareholders an impressive annual update on Thursday afternoon.
The construction firm told the market that annual revenues and profits had risen across 2019 and that ‘strong results’ had reflected the quality of its work.
Shares in Morgan Sindall Group PLC trade at 1,936p (-0.10%). 20/2/20 12:36BST.
Morgan Sindall said that revenue rose 3% to £3.1 billion in 2019, compared to £2.9 billion in 2018, while pretax profit rose to £88.6 million compared to £80.6 million.
On an even better note, the firm said that secured workload in 2019 rose 14% from £6.7 billion to £7.6 billion.
Morgan Sindall noted that they had changed their strategy to improve business operations.
The change and focus to contract selectivity, operational delivery and on generally improving the overall quality of business won and delivered – and this has paid off following the strong results posted today.
The Construction and Infrastructure divisional revenue rose to £1.5 billion from £1.3 billion in 2018, while Fit Out delivered revenue of £839.0 million compared to £831.0 million a year ago.
On the back of these strong results, Morgan Sindall have increased their total dividend by 11% to 59p from 53p paid in 2018.
Commenting on today’s results, 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.
Our 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.
Both the volume and the quality of our secured workload have increased in the year leaving us well-positioned for the future. 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 grow from strength to strength
Following the results that have been posted today, it is clear to see that the firm has been growing from strength to strength.
While revenue was flat between H1 2018 and 2019, adjusted operating profit grew 18% to £37.5 million and adjusted profit before tax jumped 20% to £36.3 million.
Notable divisional performances came from Partnership Housing and Urban Regeneration, up 39% and 36% respectively.
Certainly this is an impressive update from Morgan Sindall – the firm should be confident to keep growing and exceed expectations.