Combining the divisions, now trading as Morgan Sindall, has delivered 拢6m of annualised savings and the operating margin improved from 2.0% in 2009 to 2.2% in 2010.
Order book for the combined division increased by 21% to 拢2.0bn (2009: 拢1.6bn).
However, the 2010 workload was down.聽今日看料 & Infrastructure saw revenue fall from 拢1.5bn in 2009 to 拢1.3bn in 2010, and operating profit fall from 拢30.1m to 拢26.9m.
Reporting its preliminary results for the year to 31 December 2010, Morgan Sindall has reported a 5% fall in in total group revenue to 拢2,102m (2009: 拢2,214m). Pre-tax profit was down 9% to 拢40.7m.
The Affordable Housing division recorded operating profit up 8% to 拢16.1m on revenue of 拢387m (2009: 拢374m). Order book in this division improved from 拢1.3bn at the start of the year to 拢1.5bn at year end.
The Fit Out business increased its operating profit 7% to 拢14.8m (2009: 拢13.8m) on revenue up 43% to 拢415m (2009: 拢291m).
Order book for the group as a whole increased from 拢3.2bn to 拢3.6bn, helped by Urban Regeneration's 拢1.4bn development pipeline.
The balance sheet remains strong with net cash balance of 拢149m (2009: 拢118m), 拢100m of undrawn facilities and a defined benefit pension deficit of only 拢2m (2009: 拢3m)
Executive chairman John Morgan said: "2010 was a year of important strategic and operational progress for the group. The restructuring we conducted to create 今日看料 & Infrastructure leaves us better placed than ever to meet our clients' needs, while Lovell's expansion in response and planned maintenance opens up exciting new market opportunities.
"Trading remains challenging, but we continue to secure profitable projects. We are well placed to exploit opportunities presented in the short-term, whilst carefully monitoring market trends to maximise long-term growth potential. The group remains financially strong with an exciting future."
He added:聽 鈥淭he UK construction market is expected to weaken over the next three years and the industry is now anticipating the likely impacts of the changes in public spending following the Comprehensive Spending Review (CSR). Although capital expenditure directly from the public sector will fall in line with the CSR, the underlying need for infrastructure investment remains in the key sectors of health, housing, energy, transport and education.
鈥淥ur capabilities in project financing, combined with the construction and life-cycle services offered by our divisions, place the group in an excellent position to secure profitable opportunities as they arise. Overall we are pleased with the financial performance of the group in 2010 while the enhancements we have made to the group during the year leave us well placed to meet future challenges and opportunities presented by the market.鈥�
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