Last checked at 14 Jun 2016 07:00
14 June 2016
Change in Reporting Segments
Morgan Sindall Group plc today announces a change to its divisional reporting in order to better align its reporting segments with the business strategy and operational management structure.
The Group's results for the half year ending 30 June 2016 will be published on 2 August 2016 and will be prepared in line with this new reporting structure. Ahead of these results, this announcement provides the comparator numbers based upon this new reporting structure for the prior year half year results ended 30 June 2015 and full year results ended 31 December 2015.
Rationale for change to reporting segments
The Group's strategy is focused on two distinct but complementary business activities: Construction and Regeneration.
Operating within these two strategic lines of business, the Group has, to date, reported results in five reporting segments: Construction & Infrastructure, Fit Out, Affordable Housing, Urban Regeneration and Investments.
In order to better reflect the way the business is managed and operated, Affordable Housing will be split into two distinct reporting segments: (i) Property Services and (ii) Partnership Housing.
Property Services is focused on response maintenance activities provided to the social housing, insurance and general commercial sectors and is considered to be part of the Group's Construction activities.
Partnership Housing is focused on working in partnerships with local authorities and housing associations. Activities include mixed-tenure housing developments, building and developing homes for open market sale and for social/affordable rent, 'design & build' house contracting and planned maintenance. This segment is considered to be part of the Group's Regeneration activities.
Revised reporting structure
Commencing with the results for the half year ending 30 June 2016, the Group will therefore report its results in six reporting segments
· Construction & Infrastructure
· Fit Out
· Property Services
· Partnership Housing
· Urban Regeneration
· Investments
These reporting segments will underpin the Group's strategic lines of business in Construction and Regeneration as follows:
Construction Activities | Regeneration Activities | |||
Construction & Infrastructure | Fit Out | Property Services | Partnership Housing | Urban Regeneration |
Investments | ||||
The Investments division is focused on sourcing opportunities for the Group's Construction and Regeneration activities.
Restated historical financials based upon revised reporting structure
The comparator results for the prior year half year ended 30 June 2015 and full year ended 31 December 2015 based upon this new reporting structure are shown below:
Half Year ended 30 June 2015 (restated)
Construction & Infrastructure | Fit Out | Property Services | Partnership Housing | Urban Regeneration | Investments | Group Activities | Eliminations | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | £m | |
External revenue | 621.4 | 293.4 | 31.5 | 170.9 | 25.8 | 9.0 | - | - | 1,152.0 |
Inter-segment revenue | 1.8 | 5.2 | - | - | - | - | - | (7.0) | - |
Total revenue | 623.2 | 298.6 | 31.5 | 170.9 | 25.8 | 9.0 | - | (7.0) | 1,152.0 |
Operating profit/(loss) before amortisation of intangible assets and exceptional operating items | 0.3 | 10.4 | (0.8) | 3.8 | 5.0 | 0.4 | (3.6) | - | 15.5 |
Amortisation of intangible assets | - | - | - | (0.3) | (0.8) | - | - | - | (1.1) |
Exceptional operating items | (39.4) | - | - | - | - | - | - | - | (39.4) |
Operating profit/(loss) | (39.1) | 10.4 | (0.8) | 3.5 | 4.2 | 0.4 | (3.6) | - | (25.0) |
Full Year ended 31 December 2015 (restated)
Construction & Infrastructure | Fit Out | Property Services | Partnership Housing | Urban Regeneration | Investments | Group Activities | Eliminations | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | £m | |
External revenue | 1,230.5 | 606.2 | 59.5 | 365.0 | 110.4 | 13.1 | - | - | 2,384.7 |
Inter-segment revenue | 1.9 | 0.4 | - | 1.3 | - | - | - | (3.6) | - |
Total revenue | 1,232.4 | 606.6 | 59.5 | 366.3 | 110.4 | 13.1 | - | (3.6) | 2,384.7 |
Operating profit/(loss) before amortisation of intangible assets and exceptional operating items | 3.8 | 24.0 | (1.0) | 9.6 | 12.9 | (1.5) | (9.0) | - | 38.8 |
Amortisation of intangible assets | - | - | - | (0.6) | (1.6) | - | - | - | (2.2) |
Exceptional operating items | (46.9) | - | - | - | - | - | - | - | (46.9) |
Operating profit/(loss) | (43.1) | 24.0 | (1.0) | 9.0 | 11.3 | (1.5) | (9.0) | - | (10.3) |
Other information: | |||||||||
Average number of employees | 3,570 | 653 | 496 | 920 | 65 | 93 | 31 | 5,828 |
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Editor's notes:
About Morgan Sindall Group plc
Morgan Sindall Group plc is a leading UK construction and regeneration group with revenue of c£2.4 billion and which operates through six divisions of Construction & Infrastructure, Fit Out, Property Services, Partnership Housing, Urban Regeneration and Investments.
Contact:
Morgan Sindall Group plc 020 7307 9200
John Morgan, Chief Executive
Steve Crummett, Finance Director
Brunswick 0207 404 5959
Jonathan Glass
Alison Kay