News & Insights

Morgan Sindall Construction & Infrastructure contributes to parent company half year results


Morgan Sindall Construction & Infrastructure, which has its national headquarters in Rugby, along with regional offices and sites across the UK, has contributed to half year results released today (7 August 2019) by parent company Morgan Sindall Group plc, the construction and regeneration group.

Morgan Sindall Group has delivered strong profit growth in the first half of this year with adjusted operating profit up 18% to £37.5m (HY 2018: £31.9m) on revenue of £1,421m (HY 2018: £1,423m). The Group reports a secured order book of £4.2bn, up 19% from the year end, with the regeneration and development pipeline now £3.3bn, up 6% from the year end position. With adjusted earnings per share up 15% for the period to 64.2p (HY 2018: 55.6p), and interim dividend up 11% to 21.0p (HY 2018: 19.0p), the Group is confident of a strong performance for the second half of 2019.

Simon Smith, managing director for Morgan Sindall Infrastructure, said, “We entered 2019 in a robust position, and these interim results show that we are continuing this positive momentum.

“Infrastructure’s strategic focus on six specific sectors and careful selection of projects within these markets, combined with our commitment to delighting our customers, stands us in good stead for continued progress.”

Pat Boyle, managing director for Morgan Sindall Construction, said, “We are dedicated to not only delivering outstanding projects that exceed expectations, but also to leaving a lasting legacy by improving the social, economic and environmental wellbeing of the communities in which we operate.

“We think this genuine commitment to social value is a real differentiator for us.”

In Morgan Sindall Infrastructure, projects which have contributed to the half year results include:

The Highways team has started construction work on two new smart motorway schemes - worth a total of £322 million in joint venture. The projects for Highways England will see the M27 between junctions 4 and 11 converted to create permanent dual 4-lane all lane running along the 15-mile stretch, and 10 miles of the M62 between Warrington (J10) and Manchester (J12) will be upgraded.

In addition, work has begun on the £15 million redevelopment of the Old Street Roundabout, which is being undertaken as part of Transport for London’s (TfL) Civils Projects Framework, to which Morgan Sindall Infrastructure was appointed in January 2017. The project aims to significantly upgrade facilities for pedestrians, cyclists and public transport. The roundabout island will be removed to form a new peninsula-style junction, reintroducing two-way traffic movements and converting the existing roundabout into an open and accessible public space.

The Rail team has begun work on the £196 million joint venture Barking Riverside extension project for Transport for London (TfL). The 4.5 kilometre extension of the Gospel Oak to Barking line, one of the major projects in TfL’s Business Plan, is an intrinsic part of the Barking Riverside development, a 180-hectare site on the northern bank of the River Thames that will become home to one of London’s most significant housing developments.

In Aviation, the division continues to operate at Heathrow Airport under the Q6 framework, which has been extended for a further two years and is expected to run until December 2021. In the first six months of 2019, works have completed on the Block 21 Outer Taxiway and a number of landside roads and car parks. In addition, work has begun on phase two of the southern runway.

In the Nuclear sector, in May 2019 Sellafield Ltd awarded Morgan Sindall Infrastructure a £1.6 billion contract to provide the civils construction management (Lot 3) of the Programme and Project Partnership (PPP), which is estimated to be worth a total £5 billion over 20 years. The partnership is designed to establish long-term relationships to enable efficient project delivery of the site’s decommissioning programme, as well as providing local economic benefits. Work is also continuing on the £1.1 billion Infrastructure Strategic Alliance (ISA) for Sellafield Ltd.

In Energy, works have begun on the £80 million Visual Impact Provision project in Dorset following the contract award by National Grid as part of the four-year Engineer, Procure and Construct (EPC) framework which Morgan Sindall Infrastructure was appointed to in 2016. This complex project involves the design, construction, testing and commissioning of a new eight kilometre 400kV double circuit underground cable system and associated works in the Dorset Area of Outstanding Natural Beauty (AONB). The project also requires the removal of the existing 22 pylon overhead line that forms part of the current landscape in the AONB. The division has also been successful in securing a further circa £30 million of electricity cabling and overhead line works from Scottish and Southern Electricity Networks as part of the two frameworks to which it was appointed in 2013.

In the Water sector, Morgan Sindall Infrastructure continues to work with Welsh Water and Yorkshire Water as part of two Asset Management Period 2015 – 2020 frameworks to upgrade and enhance the water networks. In addition, the division continues to deliver the £416 million west section of the Thames Tideway Tunnel as part of a joint venture. During the period, tunnelling has started on the 7km main tunnel drive and the 1km Frogmore connection tunnel.

In Morgan Sindall Construction, projects which have contributed to the half year results include:

In Scotland, the business continues to win high-profile early years, primary and secondary education projects, with the most recent a £64 million contract from hub South West and South Ayrshire Council to build two new campuses. The team has also handed over the £20 million state-of-the-art Woodside Health & Care Centre in Glasgow city centre.

In the North, the team has bolstered its already strong presence as work began on Liverpool John Moores University’s Copperas Hill development. The project will transform the disused former Royal Mail site into a state-of-the-art new Sports Building, a five-storey Student Life Building and attractive open spaces. The appointment to build a new community hub in Gorton for Manchester City Council was also announced. The hub will create a one-stop resource for local people to access a range of health, social and public services in a single location. Work is expected to begin on site later this year.

Meanwhile, a key milestone in Yorkshire in the first half of the year was the completion of the £30 million Barbara Hepworth Building for the University of Huddersfield. The building will house the School of Art, Design and Architecture, enabling these disciplines to be united under one roof for the first time in an exciting hub of creative studios and technology facilities.

In Wales, Morgan Sindall Construction retained its place on the four-year £1 billion South East & Mid Wales collaborative construction framework (SEWSCAP), having been appointed to all four lots it tendered for. Through the framework’s previous iteration, the division delivered nine schools, supporting more than 6,000 school places. It has also been selected to deliver a £16.5 million renovation of the prestigious Pantycelyn student hall of residence by Aberystwyth University.

In the East Midlands, the business continues to win work through public sector procurement specialist Scape Group’s Regional Construction framework. The most recent scheme is a £6 million leisure centre in Market Rasen. The company has also been selected as the exclusive provider in the region for projects over £7.5 million on Scape’s Venture framework, which is aimed at public-private partnerships.

In the West Midlands, Morgan Sindall Construction remains one of the most active on the Constructing West Midlands (CWM) Framework, which it has held a place on for the last seven years. Through the framework, the company has recently won a £12 million contract to expand Rockwood School, and has a healthy pipeline currently in pre-construction. Whilst in Oxford, the division has been selected by the University of Oxford as the only main contractor to work across all three lots of its 10-year £1.5 billion Capital Projects Partner Framework.

In the East region, key projects under construction include the first phase of a £30million state-of-the-art college campus for South Essex College in the heart of Basildon and work has also started on two new primary schools for Norfolk County Council worth a combined value of £15 million. In Cambridgeshire, Morgan Sindall Construction has been appointed to a £14.2 million project to deliver Wintringham Primary School for Cambridgeshire County Council which will provide places for 700 pupils.

In London, the Construction team has been appointed by Hackney Council, via the Southern Construction Framework, to a £53.8 million contract to deliver public realm improvements and the new Britannia Leisure Centre, and a £43.7 million contract to build a secondary school and sixth form, the City of London Academy Shoreditch Park. The company has also been appointed to the City of London Corporation’s General Major Works Framework to support the delivery of its capital programme and strategy. The company has been selected for Lot 2 which will see it compete with five other contractors for projects between £4.6 million and £15 million. The framework will run for four years and covers an estate of more than 800 properties, both inside and outside of the square mile.

Finally, in the South, key projects under construction include a landmark £24 million 300 bed student accommodation development for Arts University Bournemouth. The company is also on site delivering a £13.5 million project appointment to refurbish the Harrison Building on the University of Exeter’s Streatham Campus. Other projects in delivery include a £3 million Fleet Helicopter Support Unit (FHSU) for the Defence Infrastructure Organisation at HMNB Devonport, the largest naval base in Western Europe. The company has successfully completed a £15 million multi-deck car storage facility for Associated British Ports (ABP) in Southampton – the eighth multi-deck car storage facility it has delivered for ABP. It has also recently completed work on a £6 million state-of-the-art creative arts centre for Sherborne Girls School in Dorset. The company has been reappointed to the Southern Construction Framework (SCF) across three lots that will deliver up to £5.25 billion of public sector construction work across the south of England over the next four years, and has already secured first stage awards on three of the earliest projects to be procured through the framework.

  • For more information about this news release please contact Laura Bradley, Head of Communications at Morgan Sindall Construction & Infrastructure on 01788 534638 or email