Morgan Sindall has reported a pretax profit of £43.9m for 2016 on revenue up 7% to £2.5bn.
The result represents a turnaround for the company, which reported a pretax loss of £14.8m in 2015 after writing off £47m on Faslane contracts inherited from its 2007 Amec acquisition.
In its latest results for the 12 months to 31 December 2016, the firm said all divisions were now performing well with strong cash generation and the group expected to outperform expectations this year.
While group revenue rose 7% to £2.5bn in 2016, the outlook continues to look positive for next year as the group’s order book rose nearly a third to £3.6bn.
In construction & infrastructure, the operating margin improved to 0.7%, compared to 0.3% in 2015. Adjusted operating profit was up to £8.9m, from £3.8m in 2015.
Partnership Housing operating profit rose 40% to £13.4m, driven by an increase in interest with local authorities and housing associations on opportunities for future land and development partnerships.
The firm’s Overbury fit-out business ended the year with a record order book of £446m.
Chief executive John Morgan said: “These results demonstrate the considerable strategic and operational progress made in the group over the last few years and the underlying quality of the business.”
He added: “We are confident in the outlook and expect the positive momentum across the group to continue through 2017 and beyond.
“With significant opportunities in partnership housing, the continued improvement in operational delivery in construction and infrastructure, and the size and quality of our secured order book in fit-out and elsewhere across the group, we are well-placed to deliver a result for the year which is slightly above our previous expectations.”
