Added: Over a year ago by Morgan Sindall Infrastructure
2021 was an excellent year for Morgan Sindall Group, with a record set of results. Group revenue rose 6% from 2020, delivering an adjusted operating profit of £131.3m (FY 2020: £68.5m) on revenue of £3.2bn (FY 2020: £3.0bn). The Group reported a secured order book of £8.6bn, up 4% on the year end.
With a strong balance sheet and net cash of £358m (FY 2020: £333m), the Group is confident of achieving another good year of progress in 2022.
"Once again, our strong commercial performance has been supported by our selective approach to work winning. I’m incredibly proud of our teams and colleagues, who continue to lead our commitment to innovative and responsible infrastructure with drive and dedication."
Simon Smith, Managing Director Morgan Sindall Infrastructure
Simon Smith, managing director for Morgan Sindall Infrastructure said:
“We’re delighted to recognise the significant contribution we have made to Morgan Sindall Group’s 2021 results. Once again, our strong commercial performance has been supported by our selective approach to work winning. I’m incredibly proud of our teams and colleagues, who continue to lead our commitment to innovative and responsible infrastructure with drive and dedication.
We’re excited for the progress ahead of us in 2022 as we work collaboratively with our customers and supply chain to develop and enhance the UK’s infrastructure, and look forward to maintaining this positive momentum in the months and years ahead.”
In 2021, Morgan Sindall Infrastructure’s revenue decreased to £826m (from £967m in 2020) primarily due to the timing of its project workload, while operating profit increased significantly, up 32% to £36.2m (FY 2020: £27.5m). This resulted in an operating margin of 4.4%, up from 2.8% in the prior year and was driven by strong operational delivery on site and by the type of work.
The first half margin was 3.3%, while this increased to 5.5% in the second half, benefitting from work mix, efficiencies and final account settlements on a number of projects.
Infrastructure’s order book at the year end was £1,905m, down 6% on the previous year end (FY 2020: £2,025m), however was up 1% on the half year position (HY 2021: £1,894m). In excess of 90% of the value of the order book is derived through frameworks, consistent with the strategic focus on long-term work-streams from its customers.
Our focus remains on contract selectivity and risk management, operational delivery and developing long term relationships with our customers. Our new and upgraded medium-term target is to achieve revenue of £1bn per annum while delivering an operating margin within the range of 3.5%-4.0% per annum.
Progress towards this target is expected in 2022, although due to the timing and nature of its project workload for the year, margin is expected to move back to within its target range, which is slightly lower revenue compared to 2021.