You are viewing 1 of your 1 free articles
Contractor reports increase in affordable housing profit
Morgan Sindall has reported increased profits on its affordable housing activities despite a drop in profit overall.
The contractor, which provides repairs and maintenance and build services to social landlords, today reported its pre-tax profits fell by 6% to £13.3m in the first six months of 2015 compared to the same period in 2014. The drop was largely down to a £35m write-down due to problems on two contracts with the Ministry of Defence.
The group’s affordable housing operating profit grew by 3%, up from 2.7% for the same period in six months, while the value of its affordable housing construction services order book increased 9% to £732m. The group’s losses on affordable housing response and maintenance reduced from £1.7m in the first six months of 2014 to £0.8m this year. It plans to break even next year.
Stewart Davenport, managing director of Morgan Sindall’s affordable housebuilding arm Lovell, said: “All our regions have continued to see increased sales activity on our mixed-tenure sites.
“This has allowed us to continue our investment in new mixed-tenure regeneration projects, leaving us well placed to grow the business in the coming years.”
