StockMarketWire.com - Morgan Sindall, the construction and regeneration group, grew its profit before tax by 46% to £66.1m in 2017, with revenue up 9% to £2,793m.

Operating profit was up 41% to £68.6m, resulting in an operating margin of 2.5% - an improvement of 60 bps over the prior year margin of 1.9%.

The group result was driven by Fit Out, with revenue growth of 16% to £735m and significant margin improvement to 5.3% (FY 2016: 4.3%), delivering an operating profit of £39.1m, up 42%.

Construction & Infrastructure made further operational progress with an improved operating margin of 1.5%, up from 0.7% in the prior year.

Further progress in Property Services was impacted by restructuring costs in the year with the division making a loss of £1.3m.

Of the group's regeneration divisions, Partnership Housing increased its operating profit 5% to £14.1m, however performance was impacted by lower mixed-tenure open market sales in the year and by cost escalation on a single 'design & build' housing contract.

Urban Regeneration reported operating profit of £10.0m (FY 2016: £13.4m). Investments made good progress with developing its portfolio of property partnerships, delivering a small profit of £0.5m in the year.

The secured order book for the group was £3,849m at the year end, up 6% from the previous year end and up 1% on the half year position. The regeneration & development pipeline also grew, up 1% to £3,233m.

The total dividend for the year has been increased by 29% to 45.0p per share, which includes a proposed increase in the final dividend of 32% to 29.0p per share.


At 8:02am: [LON:MGNS] Morgan Sindall PLC share price was +44p at 1278p



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