Morgan Sindall profit soars

Morgan Sindall, the specialist fit out and regional building contractor, has announced record interim results. During the six months to June, pre-tax profit grew by 77% to œ2.2 million (œ1.3 million), on a much increased turnover of œ113 million (œ78 million).

The lion's share of the work was won by the group's specialist fit out businesses, Morgan Lovell and Overbury, where combined turnover rose to œ85 million from œ77 million in the previous six months.

Chief executive John Morgan is concentrating on increasing margins rather than market share: net profit improved by 0.4% with operating profits rising by œ480,000 to œ1.8 million.

Turnover in the regional building firms Barnes & Elliott, Hinkins & Frewin and Sindall, was up 46% to œ28 million. Operating profits stood at œ480,000.

Morgan Sindall bought west country builders Stansell six weeks ago. Stansell is expected to contribute œ50 million to group turnover by the end of the year.

Corporate Planning Director John Bishop pointed out that the group's companies had a one-in-three tender success rate and a repeat client ratio of 65%.

Morgan said: "Our companies work on a very autonomous basis. Local managers are empowered to make decisions. Each company is set up to focus on what it does best."

Morgan reckoned that around 50% of Morgan Sindall's work is either negotiated or won where the company has not sent in the lowest price.

He said: "I want Morgan Sindall to be the place where the most talented people come to work and learn. We are in a mature market and we can't rely on it to expand: we have to manage what we've got better."