Repairs contractor announces drop in profit

The contractor’s annual results, published today, reveal that Morgan Sindall’s affordable housing activities generated turnover of £423m in 2014, an 11%  increase on 2013. However, its operating profit fell from £8.6m to £6m over the same period.

Morgan Sindall’s responsive maintenance revenue fell from £68m in 2013 to £61m in 2014, and its operating loss increased from £1.2m to £3.5m.

The results statement said: ‘A key challenge for response maintenance remains winning work on acceptable terms.’ It says it has made ‘progress’ on this, and cites a number of recent contract wins, including the provision of facilities management services within a 28-year £32.8m North Tyneside Council Sheltered Housing private finance initiative scheme, and a five-year £22m agreement with Estuary Housing Association to provide repairs services to its stock of over 3,900 homes.

Morgan Sindall has recently re-branded its response maintenance division as ‘Morgan Sindall Property Services’ replacing its Lovell brand. The statement said: ‘As part of the repositioning and turnaround of the business, a new and sector-experienced management team has been recruited during the year and investment made in business systems to improve operational efficiencies and enhance productivity and delivery. ‘

Morgan Sindall’s planned maintenance revenue fell 4% from £113m in 2013 to £108m in 2014. It said the market is providing ‘a steady flow of work from local authorities and housing associations invest in improving housing stock.’

Across all sectors in which it operates, Morgan Sindall’s turnover increased 6% to £2.2bn, while its operating profit fell 14% to £28.9m.