Morgan Sindall, which operates through five specialist divisions of fit out, construction, infrastructure services, affordable housing and urban regeneration, has announced record results for the six months to 30 June 2008.
Profit before tax and amortisation of intangible assets rose by 31% to £33.1m (2007: £25.2m) on an increased revenue of £1.24bn up 48% from £836m for the corresponding period last year. The Group's forward order book stands at £4.2bn (2007: £4.1 bn). Adjusted earnings per share for the period grew by 48% to 60.9p per share (2007: 41.1p). The Board has declared an increased interim dividend of 12.0p up 20% from 10.0p in 2007.
Lovell has made a strong contribution to this result through the company's successful delivery of affordable housing developments in partnership with housing associations and local authorities, large-scale housing refurbishment programmes and urban regeneration schemes. The Lovell forward order book stands at £1.4bn.
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New contract awards for Lovell include a £53m project for Hounslow Homes and the London Borough of Hounslow in west London to build up to 350 new homes for rent and shared ownership over a five-year period. Major ongoing projects include the £200m PFI regeneration programme to redevelop Miles Platting in east Manchester in partnership with Manchester City Council and New East Manchester. As part of the Renaissance Consortium, Lovell is refurbishing 1,500 homes in Miles Platting and is also about to start construction on more than 1,000 new family homes.
As part of The Compendium Group, Lovell is working on a £55m housing regeneration programme commissioned by RENEW North Staffordshire for the Coalville estate at Weston Coyney, Stoke-on-Trent. The scheme involves the building of 283 new homes for rent, shared ownership and sale as well as the refurbishment of existing houses and creation of new community facilities.
"Lovell has made a solid start to 2008, thanks to continued Government investment in social housing provision and renewal," said Lovell Managing Director Stewart Davenport. "As most of our business is in new-build social housing and housing refurbishment, we are not as affected by the current downturn in open market house sales. Lovell occupies a leading position in the social housing market and is helping deliver some of the UK's most high-profile schemes answering the demand for new affordable homes. With the Government committed to providing three million new homes by 2020 to meet the continuing housing shortage and to delivering large-scale housing refurbishment schemes through its Decent Homes programme, the outlook for the business remains positive."
(GK/JM)
