Morgan Sindall chief executive John Morgan said the company was “well-positioned” for the future and on track to deliver results in 2021 “slightly ahead” of 2019 after it adapted quickly to the covid-19 pandemic.
Morgan’s comments came as Morgan Sindall unveiled its financial results for the year to 31 December 2020. The company’s revenue fell 1% over the period to just over £3bn. Pre-tax profit was £60.8m, down 31% from the year before. The company’s net cash stood at £333m, up from £193m the year before.
Morgan Sindall said its construction and infrastructure division had been driven by a strong performance in infrastructure, with operating profit up 11% to £35.7m and an operating margin of 2.2%. It also claimed a “resilient” performance in fit out, where operating margin improved to 4.6% from 4.4% in the previous year. Operating profit was down to £32.1m, from £36.9m the year before. Full-year operating profit in the property services division was £1m, down from £4.3m.
John Morgan said: “While 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.
“Throughout 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. I am extremely proud of the way our people have stepped up in these adverse circumstances.
“Despite 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. 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’s continued support for our activities and the recognition of the industry as a key driver for economic stability and recovery.
The size and quality of our growing secured workload at well over £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.”
