Morgan Sindall, the UK construction group, registers impressive profit

Posted under General by Jermaine

The UK construction group, Morgan Sindall has surprised the construction industry by presenting an upbeat scenario of its high performance in the remaining period of 2008. The group announced increase of 13 per cent in pre-tax profits to £28.6m during first-half of the current financial year. The shares had lost almost half the value this year.

Though the company had warned that its venturing in to private sector housebuilding would create adverse impact on its performance in 2009, it maintained that it would deliver good results for the rest of 2008. The analysts, however, estimate that Morgan Sindall’s profits would go down by 10 per cent to £61m.

The Morgan Sindall group’s other activities include affordable housing, office refurbishment, infrastructure services such as railway works and urban regeneration services. As per the company data, Morgan Sindall’s revenues from construction unit increased by 100 per cent compared with the same period last year. The group’s revenues jumped to £1.24bn from £836m in the first half of 2007. It raised the interim dividend by 20 per cent to 12p, while the basic earnings per share were up 22 per cent to 50.1p.

Analysts concur with Morgan Sindall’s expectations of good performance, but apprehend that slump in the building sector could affect performance of its other divisions.

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