MORGAN SINDALL GROUP PLC
Half year report for the six months to 30 June 2012
Morgan Sindall Group plc, the construction and regeneration group, today announces its half year results for the six months to 30 June 2012.
|
|
Six months to 30 June 2012 |
Six months to 30 June 2011 |
Change |
|
Revenue |
£1,000m |
£1,087m |
-8% |
|
Profit before tax, amortisation and non-recurring items |
£20.3m |
£19.5m |
+4% |
|
Profit before tax |
£18.8m |
£16.7m |
+13% |
|
Period end (net debt)/net cash |
(£12m) |
£65m |
-118% |
|
Average (net debt)/net cash balance |
(£36m) |
£43m |
-184% |
|
Adjusted earnings per share |
39.3p |
35.1p |
+12% |
|
Basic earnings per share |
35.8p |
35.1p |
+2% |
|
Interim dividend per share |
12.0p |
12.0p |
n/c |
Financial highlights
- Solid performance in difficult markets, in line with expectations
- Interim dividend maintained at 12p, reflecting balance sheet strength and confidence on medium-term outlook
- Margins held up well given market conditions, due to focus on operational discipline
- Average net debt balance of £36m (2011: cash of £43m) reflecting investment in regeneration and reduced levels of cash generated from construction activities
Strategic highlights
- Continued to develop strong market positions in construction sectors and to grow investment in regeneration
- Our creative partnering is helping public and private sector clients overcome funding constraints
- Strong relationships driving increased revenue from repeat clients and from existing frameworks
- Sale of mature investments to recycle capital into new projects
Outlook
- Sound forward order book of £3.2bn (2011: £3.5bn)
- Regeneration pipeline of £1.8bn (2011: £1.8bn) with £0.6bn of opportunities at preferred developer stage
- Focus on growing infrastructure sectors in which we have a strong track record; rail, aviation, energy and highways
- Expected public sector land release will drive regeneration in medium-term
- Market will remain challenging in short-term with little sign of improvement due to delay in economic recovery
John Morgan, Executive Chairman, commented:
"We have delivered a solid performance over the first half of 2012 and we are on track to meet our expectations for the full financial year. Despite the challenging economic environment, we are encouraged by the continuing opportunities in growth infrastructure sectors and we remain committed to investing in our regeneration business to drive growth over the medium to long term.
Whilst we expect market conditions to remain challenging in the short term, we believe our strong track record of successful delivery and our ability to provide our customers with creative, integrated solutions leaves us well positioned for the future."
