(Alliance News) - Morgan Sindall Group PLC on Thursday celebrated strong annual results and it increased its yearly dividend.
The London-based construction group delivered a "record" annual performance, with revenue up 14% to GBP4.12 billion in 2023 from GBP3.61 billion in 2022.
Beside its Property Services division swinging to an operating loss of GBP16.8 million from a profit of GBP4.3 million in 2022, all of Morgan Sindall's segments reported growth for the year. The firm added a "remediation programme" is on track to return the unit to profit in 2025.
This included another "market-leading" performance from Fit Out, which specialises in office space refurbishments, with operating profit up 38% to GBP71.8 million from GBP52.2 million.
Adjusted pretax profit increased to GBP144.6 million, 6.2% ahead of GBP136.2 million the prior year. Reported pretax profit was 69% higher at GBP143.9 million from GBP85.3 million.
Adjusted earnings per share rose 4.1% to 247.7p from 237.9p.
Morgan Sindall's total annual dividend was 114p, with a proposed final dividend of 78p. This is up 13% from the total 101p delivered to shareholders in 2022, which included a 68p final dividend.
As at December 31, the group had GBP461 million in net cash, up from GBP355 million at the end of 2022.
Morgan Sindall said that it had a healthy secured order book of GBP8.92 billion, up 5.4% from GBP8.46 billion a year before.
Looking ahead, the company said that slowing inflation and the chance of lower interest rates provides "a backdrop of confidence for the year ahead".
Chief Executive John Morgan said: "Despite facing market headwinds in the year and the disappointing losses in Property Services, the diversified nature of our operations and capabilities has allowed us to continue to make significant strategic and operational progress. In addition, our focus on positive cash flow together with our strong balance sheet has positioned us well to benefit over the long term from the opportunities available in our markets."
Shares in Morgan Sindall were up 2.0% at 2,259.02 pence each in London on Thursday morning.
By Hugh Cameron, Alliance News reporter
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Morgan Sindall Group (MGNS)