StockMarketWire.com - Morgan Sindall has swing to an H1 pretax loss of £27.2m, from £13.0m. Revenue was £1.15bn, from £998m. Interim dividend was 12p a share, unchanged. Its FY expectations remained unchanged.

Highlights:

· Strong performance from Fit Out, with operating profit up 89% to £10.4m (HY 2014: £5.5m) and good growth expected to continue through the second half

· Construction & Infrastructure adjusted operating profit down to £0.3m (HY 2014: £5.9m), impacted by continued challenges from older construction contracts in London and the South. Completion taking longer than previously expected

· Urban Regeneration operating profit up to £5.0m (HY 2014: £3.5m) as a consequence of the ongoing and focused, long-term investment in the development portfolio

· Improved performance from response maintenance in Affordable Housing, with loss reduced to £0.8m (HY 2014: loss £1.7m) and further progress expected in the second half towards its target break-even position by 2016

· Further to the trading update on 7th May, an exceptional charge of £39.4m taken as a write-down against amounts recoverable on two old construction contracts. The charge is non-cash in nature and commercial settlement 'in principle' reached on one of the contracts

· Average net debt of £35m reflecting the expected increase in investment in Urban Regeneration and the regeneration activities of Affordable Housing.






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