Morgan Sindall hits £1bn turnover mark

Morgan Sindall pushed turnover beyond the £1bn mark for the first time. But pre-tax profit slid to £16m (£20m) as the group continued to grapple with its troublesome regional construction division.

Its six regional names disappeared last year when chairman John Morgan rebranded them all under the new communal title of Bluestone in order to win more work from national clients.

The fresh approach cost £5m and was partly responsible for construction slipping from a £4m profit in 2001 to a £5m loss in 2002 (12 months to 31 December).

Morgan would not be drawn on the reason behind the rest of Bluestone's £9m performance downturn. Instead he said: "Bluestone employees are excited by the opportunities the single brand offers."

The group's affordable housing division saw turnover jump 43%. It has a forward orderbook worth £570m (£260m).

"We've been recruiting heavily for the past few months as workload continues to climb," said Morgan.

The fit-out division sustained operating profit despite a 17% fall in turnover. And the infrastructure services division was totally transformed, with turnover jumping to £280m (£100m) as a result of a £38m spend on two major acquisitions - Morgan Est and Pipeline Constructors Group.