Following two strong financial years, a large order book should see Morgan Sindall comfortably through 2019 and allow the contractor to pick and choose its future contracts.
Morgan Sindall has reported another successful year with the release of its annual results for 2018, with profits up, and a large pipeline of work to come.
The contractor reported that adjusted pretax profit was up 23% to £81.6M compared to £66.1M in 2017. Revenue was up from £2.7bn to £2.9bn, a 6% increase on the previous year.
As well as profits, a full order book will keep Morgan Sindall busy in 2019. The contractor has £3.6bn worth of work in its order book and a regeneration and development pipeline of a further £3.1bn. The contractor is also inline to bank a further £800M of work for which it is currently preferred bidder.
Morgan Sindall recently began work on a £200M contract with Network Rail as part of the East Coast Main Line rail upgrade. Other new work includes a contract for a £100M business and research park in Cambridgeshire and the £8M refit and rebuild of a Navy headquarters in Cardiff.
Morgan Sindall chief executive John Morgan said that a large surplus cash pile means the company can afford to be picky about the contracts it takes on in the future.
“Our strong balance sheet, with net cash throughout the year and a business which continues to generate positive operating cash flow is a significant differentiator for us,” Morgan said. “This provides us with the flexibility to continue being highly selective with bidding in our construction activities while also allowing us to invest in our regeneration activities.”
“Looking ahead to 2019, we are confident of another good year of progress and the group is in a strong position to deliver on its expectations.”
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