Regeneration and construction firm Morgan Sindall has seen profit more than halve in the first six months of 2020, falling from £35.5m to £13.6m, with revenue dipping by 4% £1.4bn.
The group’s balance sheet remains strong, however, with average daily net cash in the period increasing to £153m and its secured workload up by 5% to £8bn. It also has committed bank facilities of £180m extending out to 2022, which it said provided a “significant amount” of total available liquidity.
Morgan Sindall’s regeneration arm Muse saw revenue fall by 20% over the period to £35m, with operating profit tumbling by 75% to £2.1m – down from £8.3m in H1 2019.
The firm said that the impact of Covid-19 was felt across all stages of the development programme, with sites stalled, fees reduced and decisions and discussions with potential forward funders delayed.
Muse managing director Matt Crompton said: “While the half-year results have been impacted by the effects of coronavirus, we remain in a strong position as we continue to collaborate with our partners to create inspiring new places and spaces; bringing together the best of the public and private sectors to drive economic and social prosperity at a time when it is needed most. One of our key focus areas going forward is using our experience of creating vibrant new places to work closely with local authorities to help them repurpose their towns and cities by looking at adaptable, complementary and sustainable places that also maximise social value for local communities.”
Muse currently has 17 projects on site, with a gross development value of £392m. It expects begin construction on a further 11 projects in the second half of 2020 and has received planning on four additional projects with a total development value of £70m and was appointed preferred developer on three new projects in Bradford, St Helens ad Salford (pictured).
The firm’s order book and forward development pipeline now stands at £2.3bn.
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