LONDON (ShareCast) - (Sharecast News) - Morgan Sindall reported a record set of final results on Thursday, describing a strong performance despite market headwinds.
The FTSE 250 construction and regeneration company said revenue increased 12% to £3.6bn, while adjusted profit before tax rose 7% to £136.2m.

Its balance sheet also showed strength, with net cash at year-end standing at £355m, and average daily net cash coming in at £256m.

Additionally, firm's company's order book remained substantial, with a secured workload of £8.5bn.

Morgan Sindall's board hiked the total dividend by 10% to 101p per share, although it did incur an exceptional charge of £48.9m for building safety, in line with previous guidance.

Divisionally, its fit out operations reported a solid performance, with operating profit increasing 18% to £52.2m.

Construction and infrastructure reported a steady performance with an operating margin of 3.3% and an operating profit of £52.1m, against strong prior-year comparatives.

Operating profit in property services increased 5% to £4.3m, and partnership housing reported a strong contribution, with revenue there increasing 22% to £696m and operating profit rising 13% to £37.4m.

Finally, urban regeneration reported good progress, with an operating profit increase of 56% to £18.9m and a return on capital in the year of 20%.

"The group delivered a strong performance in 2022, with significant strategic and operational progress made across the business despite the market headwinds," said chief executive officer John Morgan.

"These results are another record for the group and they reflect the high quality of our operations and the talent and commitment of our people.

"With the more challenging economic backdrop, our strong balance sheet including our substantial net cash position provides us with confidence and enables us to continue operating efficiently and effectively."

Morgan said it particularly allowed the company to continue making decisions for the long term, to maximise its competitive advantage, and to position itself in its markets for continued sustainable long-term growth.

"While there remains significant macroeconomic uncertainty, Morgan Sindall is a strong and agile business which is well-placed to overcome the challenges of the coming year and also well-positioned to take advantage of the opportunities that arise in this type of environment.

"There are early signs that inflation, particularly labour inflation, has plateaued and is starting to fall in some areas.

"We look forward with optimism and although it is still early in the year, we're well-positioned to deliver a result for 2023 which is in line with our current expectations."

At 0859 GMT, shares in Morgan Sindall Group were up 6.98% at 1,748p.

Reporting by Josh White for Sharecast.com.

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