08 August 2019 | Herpreet Kaur Grewal
Repairs and maintenance specialist Morgan Sindall Property Services has helped the overall group deliver "strong profit growth" in the first half of this year, according to its financial results.
The construction and regeneration company reported that its adjusted operating profit was up 18 per cent to £37.5m (HY 2018: £31.9m) on revenue of £1,421m (HY 2018: £1,423m).
The group secured an order book of £4.2bn, up 19 per cent from the year end, with the regeneration and development pipeline now £3.3bn, up 6 per cent from the year end position.
With adjusted earnings per share up 15 per cent for the period to 64.2p (HY 2018: 55.6p) and interim dividend up 11 per cent to 21.0p (HY 2018: 19.0p), the group says it is "confident" of a strong performance for the second half of 2019.
Morgan Sindall Property Services has seen revenue growth of 12 per cent at £55m (HY 2018: £49m) from existing contracts and new wins. Improved operational efficiency has seen adjusted operating profit increase by 220 per cent to £1.6 (HY 2018: £0.5) and margins have increased by 190bps to 2.9 per cent (HY 2018: 1.0 per cent). Further margin improvement is expected in H2 driven by H1 contract mobilisation.
Alan Hayward, managing director at Morgan Sindall Property Services, said the property services section of the group is now "providing responsive repairs and planned maintenance services to more than 200,000 homes and public buildings around the UK".