Against a backdrop of challenging trading conditions Morgan Sindall delivered a robust performance in 2009. Profit before tax and amortisation was £51.5 million (2008: £71.4 million) on revenue of £2,214 million (2008: £2,548).
Adjusted earnings per share was 93.9p (2008:127.8p), with no change to the total dividend which remains at 42.0p (2008: 42.0p). The Group's forward order book currently stands at £3.2 billion (2008: £3.7 billion), and it starts 2010 with a £0.9 billion pipeline of projects at preferred bidder stage. The Group had no work at preferred bidder stage this time last year.
A robust performance from Lovell has contributed to these results, which have been driven by the firm’s continuing success in delivering new-build, regeneration and housing refurbishment schemes for housing associations and local authorities. The Lovell forward order book stands at £1.3 billion.
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Key schemes include a £22 million development of 195 homes for affordable rent which Lovell is building at three sites in Port Glasgow, near Greenock, in Inverclyde, for River Clyde Homes. Lovell is also working on a £21 million major redevelopment programme on the Velmore Estate, Chandler’s Ford, near Eastleigh in Hampshire for Atlantic Housing.
As part of the Renaissance Consortium, Lovell is continuing to work on a £230 million PFI regeneration programme for Miles Platting, east Manchester on behalf of Manchester City Council and urban regeneration company New East Manchester. Lovell has also been chosen as a delivery partner by the Homes and Communities Agency (HCA) to provide a 'one stop shop' service to the HCA and other public sector bodies for the development of new homes on public land. Lovell has won a place on the Delivery Partner Panel’s northern and southern frameworks.
"Lovell performed robustly in 2009 due to continuing demand for our expertise in new-build social housing and housing refurbishment and our strong partnerships with housing associations and local authorities," said Lovell managing director Stewart Davenport.
"We are working on a number of high profile new-build and regeneration schemes in England, Scotland and Wales. With the creation of new affordable homes remaining high on the political agenda, and the recovering private housing market leading to new opportunities in mixed tenure regeneration, we are in an excellent position for the future."
(GK/BMcC)
