Morgan Sindall Revenue Surge Driven by Partnership Growth
Morgan Sindall Construction, a division of the Morgan Sindall Group, a construction and regeneration company, has demonstrated its prowess in the construction and infrastructure sectors through its half year results.
In the first half of 2024, Morgan Sindall reported 14% increase in revenue, reaching £2.2bn (US$2.9bn) compared to £1.9bn (US$2.4bn) in the previous year.
The fit-out division, which focuses on interior construction projects, was a standout performer, with operating profits surging by 36% to £41.3m (US$54m), driven by increased revenues and a strong operating margin of 6.6%.
Morgan Sindall's construction arm, that centres on large-scale building projects, also demonstrated impressive growth, with a 10% rise in revenue to £519m (US$680m) and an 18% increase in operating profit to £14.1m (US$18m).
The infrastructure division that delivers engineering projects followed suit, with revenue climbing 24% to £530m (US$695m), maintaining a steady operating margin of 3.7% and boosting operating profit by 24% to £19.7m (US$25.8m).
These results not only highlight Morgan Sindall's financial achievements but also underscore its strategic partnerships with key industry players, setting the stage for continued global success.
Morgan Sindall strategic partnerships fuel inhouse developments
Morgan Sindall's success is further bolstered by strategic collaborations and development from within the company.
Mental health and wellbeing
The company has conducted health screenings, awareness events and discussions on topics like neurodiversity, healthy eating, and PTSD, enhanced by national online webinars.
Anti-Greenwash Charter
Morgan Sindall has also created its Green Claims Policy and signed a partnership with the Anti-Greenwash Charter, which sets out the standards at which the company manages its information in line with anti-greenwashing policies.
NHS
Partnering with the NHS, the company is striving to deliver critical healthcare infrastructure.
Muse
Morgan Sindall’s urban regeneration division, Muse, has made significant strides, completing projects like Greenhaus in Salford, the UK's largest Passivhaus scheme, which is a building standard focused on energy efficiency, ensuring minimal energy use for heating and cooling while maintaining high comfort levels.
CarboniCa
Morgan Sindall's 10 Tonne Challenge increased total carbon savings to 38,097 tonnes, moving closer to the 50,000-tonne target by the end of 2025.
The teams are utilising CarboniCa, an externally verified carbon measurement tool, to assess the materials and processes in their projects and their environmental impacts.
Employee development
The company is also investing in employee development, having facilitated over 6,510 hours of safety training and completed 3,000 online technical training modules.
Looking forward, Morgan Sindall is focused on sustaining growth through strategic planning and responsible business practices.
The company is also well-positioned to support government initiatives in affordable housing and social infrastructure, aiming to deliver full-year results slightly ahead of previous expectations.
Morgan Sindall’s expanding international footprint
Morgan Sindall is actively expanding its reach through joint ventures with other industry leaders.
For instance, it has partnered with Kier, another major UK construction company, on several large-scale projects.
This includes securing spots on the £3bn housing association deal and the £4.5bn (US$5.74bn) CP7 Eastern Framework with Network Rail.
Morgan Sindall is also leveraging its expertise in construction and infrastructure to expand its international footprint.
In addition to its work with Network Rail, Morgan Sindall has engaged in various high-profile projects, including a 750,000 sq ft fit-out for Canary Wharf, a financial services hub.
Chief Executive, John Morgan says: “The challenging market conditions that we experienced in 2023 are easing, as we continue to make significant strategic and operational progress across the Group and remain well positioned to support the government’s affordable home and social infrastructure plans.
“Our balance sheet, supported by a substantial average daily cash position, has enabled us to focus on making the right decisions to drive for long-term sustainable growth while also supporting the returns to shareholders in the period.”
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