Morrison negotiates for success

Morrison is now winning more than three-quarters of its work on a non-traditional basis. The company's latest results, released on Tuesday, show that the policy resulted in improved profit margins, up from 5.4 per cent to 5.8 per cent.

Fraser Morrison, chairman, said: "We have been differentiating Morrison for eight years and as our approach is developed and refined, we are greatly encouraged by the results."

In its push to step aside from lowest-price tendering, Morrison's target is to win 80 per cent of work on value criteria by the year 2000.

Results for the 12 months to March show a huge leap in turnover to œ300 million, up from œ210 million. Profit before tax for the period climbed handsomely to œ16 million (œ11 million).

Morrison's UK Construction division had an "excellent" year, said the chairman. Turnover was ahead at œ190 million (œ160 million) with operating margins increasing from 4.6 to 5 per cent. The result was operating profits up 29 per cent to œ9.3 million.

Its utility-related business has built up successful partnering and jv agreements with the result that Morrison is now developing a new facilities management operation in an attempt to add value across the range of the group's construction and development activities.

Morrison's UK Development division stepped up its operating profit to œ11 million (œ6 million) as turnover doubled to œ104 million.

Morrison's third sector is international business. "We have been building a series of opportunities into a sustainable business, focused on emerging markets in Eastern Europe and Africa," said Morrison.

The group's upfront investment during the year has outweighed profits from overseas construction projects and a net loss of œ870,000 (œ850,000 loss) has resulted.

"However, over œ20 million of overseas construction and development work has been secured for the coming year and beyond," he said.