{"id":13570,"date":"2023-02-26T06:10:01","date_gmt":"2023-02-26T14:10:01","guid":{"rendered":"https:\/\/essential.construction\/news\/49m-building-safety-charge-erodes-morgan-sindall-profits\/"},"modified":"2023-02-26T06:10:03","modified_gmt":"2023-02-26T14:10:03","slug":"49m-building-safety-charge-erodes-morgan-sindall-profits","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/49m-building-safety-charge-erodes-morgan-sindall-profits\/","title":{"rendered":"\u00a349m building safety charge erodes Morgan Sindall profits"},"content":{"rendered":"

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Chief executive John Morgan said underlying performance remained strong in spite of the economic headwinds with revenue rising 12% to a record \u00a33.6bn.<\/p>\n

Adjusted group operating profit remained robust up 6% at \u00a3132m helped by an improved contribution from the fit-out division.<\/p>\n

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But rising energy prices, supply constraints on certain materials and increased trade and labour costs contributed to a 10% erosion in construction and infrastructure profits after margins slipped to 3.3%.<\/p>\n

Morgan said there were now early signs of light at the end of the tunnel on inflation.<\/p>\n

\u201cTowards the end of the year and going into 2023, there were early signs that inflation, particularly labour inflation, had plateaued and was starting to fall,\u201d he said.<\/p>\n

\u00a0<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Morgan Sindall trading divisons<\/th>\n<\/tr>\n<\/thead>\n
\nRevenue<\/span><\/td>\nOperating Profit<\/span><\/td>\nMargin<\/span><\/td>\n<\/tr>\n
\n\u00a3m<\/span><\/td>\nChange<\/span><\/td>\n\u00a3m<\/span><\/td>\nChange<\/span><\/td>\n\n<\/tr>\n
Construction<\/td>\n\u00a31.57bn<\/span><\/td>\n3%<\/span><\/td>\n\u00a352m<\/span><\/td>\n-10%<\/span><\/td>\n3.3%<\/span><\/td>\n<\/tr>\n
Fit-out<\/td>\n\u00a3968m<\/span><\/td>\n22%<\/td>\n\u00a352m<\/span><\/td>\n18%<\/td>\n5.4%<\/td>\n<\/tr>\n
Property services<\/td>\n\u00a3163m<\/span><\/td>\n22%<\/span><\/td>\n\u00a34m<\/span><\/td>\n5%<\/span><\/td>\n2.6%<\/span><\/td>\n<\/tr>\n
Partnership housing<\/td>\n\u00a3696m<\/span><\/td>\n22%<\/td>\n\u00a337m<\/span><\/td>\n13%<\/td>\n5.4%<\/td>\n<\/tr>\n
Urban Regeneration<\/td>\n\u00a3244m<\/span><\/td>\n20%<\/td>\n\u00a319m<\/span><\/td>\n56%<\/td>\nN\/a<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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Total secured work slipped 2% to \u00a38.46bn at year-end with average daily cash still high at \u00a3256m.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

Morgan said: \u201cThe group delivered a strong performance in 2022, with significant strategic and operational progress made across the business despite the market headwinds.<\/p>\n

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\u201cWith the more challenging economic backdrop, our strong balance sheet including our substantial net cash position provides us with confidence.<\/p>\n

\u201cParticularly, it allows us to continue making the right decisions for the long term, to maximise our competitive advantage, and to best position us in our markets for continued sustainable long\u2010term growth.\u201d<\/p>\n

He added: \u201cWe look forward with optimism and although it is still early in the year, we\u2019re well\u2010positioned to deliver a result for 2023 which is in line with our current expectations.\u201d<\/p>\n

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