Barbara Hepworth building a key milestone for Morgan Sindall

A strong performance at its Yorkshire operations has boosted half year results at infrastructure and regeneration company Morgan Sindall.
Morgan Sindall Groupsaid itdelivered strong profit growth in the first halfof 2019Morgan Sindall Groupsaid itdelivered strong profit growth in the first halfof 2019
Morgan Sindall Groupsaid itdelivered strong profit growth in the first halfof 2019

The firm said its construction division achieved a key milestone in Yorkshire with the completion of the £30m Barbara Hepworth Building for the University of Huddersfield.

The building will house the School of Art, Design and Architecture, enabling these disciplines to be united under one roof for the first time in a hub of creative studios and technology facilities.

Hide Ad
Hide Ad

The group's urban regeneration and property development arm Muse worked on a number of major developments in Yorkshire during the first half including the flagship industrial and distribution development, Logic Leeds.

A major deal was agreed with Aberdeen Standard Investments at Logic Leeds to forward-fund the development of a 361,000 sq ft distribution unit and a further 362,000 sq ft unit was recently handed over to electronics giant Premier Farnell for its new state-of-the-art distribution centre.

In South Yorkshire, Muse is Rotherham Borough Council’s development partner for the Forge Island regeneration programme. The proposal includes a cinema, food and drinks outlets and a hotel set within an attractive public space and a pedestrian bridge connecting to the rest of the town centre.

In Doncaster, Muse said that all the properties have been sold at the second phase of The Gables, a development of 43 new homes in Doncaster town centre.

Hide Ad
Hide Ad

Elsewhere in Yorkshire, Morgan Sindall's Leeds-based housing developer Lovell reported improved results.

Lovell has started Phase 2c of a multi-million project at The Leeway in Hull, a major regeneration scheme to provide nearly 800 new homes in the Ings area of the city.

This latest £17.5m phase will deliver 108 homes for open market sale for sister company Compendium Living and affordable homes for Together Housing.

Phase 2b will provide 140 new homes and is due to start in 2020.

Hide Ad
Hide Ad

Lovell is also working on Doncaster Lakeside, a £30m, 147 new home development, including five affordable homes.

Morgan Sindall Group said it delivered strong profit growth in the first half of 2019 with adjusted operating profit rising 18 per cent to £37.5m.

The firm reported a secured order book of £4.2bn, up 19 per cent from the year end, with the regeneration and development pipeline now £3.3bn, up 6 per cent from the year end position.

With adjusted earnings per share up 15 per cent to 64.2p and the interim dividend up 11 per cent to 21.0p, the group said it is confident of a strong performance in the second half of 2019.

Hide Ad
Hide Ad

Following the results, analyst Andrew Nussey at Peel Hunt said: "We believe that the shares deserve a higher rating given the potential pace of EPS growth beyond 2019 (including a material slowdown in Fit Out) and its visibility, the cash position and income attractions.

"The shares remain a key 'buy' idea in a sector out of favour."