Morgan Sindall Investments helps parent Group's results
Project development and funding solutions specialist Morgan Sindall Investments Limited (MSIL) has contributed to half year results released today (2 August 2016) by parent company Morgan Sindall Group plc, the construction and regeneration group.
The Group has delivered strong profit growth in the first half of this year with operating profit before amortisation and exceptional operating items up 17% to £18.2 million (HY 2015: £15.5 million) on revenue of £1,148 million (HY 2015: £1,152 million). The Group reports an order book of £3,148 million, an 11% increase from £2,826 million, supported by a £3.2 billion pipeline of regeneration schemes, up 1% on the previous year end position. Adjusted earnings per share saw a 22% rise for the period to 29.8p (HY 2015: 24.5p). The interim dividend has been increased by 8% to 13p per share (HY 2015: 12.0p) with the Group on track to deliver a full year result slightly above previous expectations.
Key large-scale investment projects for MSIL for the first six months of this year include:
• HB Villages: In a joint venture with bespoke supported living developer HB Villages, MSIL continued to deliver new supported living apartments across the country. This year the company has forwarded funded £8.7m of new schemes, have 22 new schemes under construction and 19 in the pipeline.
• hub West Scotland: This year, the partnership has reached financial close on nine projects including Barrhead High School, a £27 million development in Barrhead for East Renfrewshire Council, due for completion in April 2018. The other schemes were: Orchard View Adult and Older Peoples’ Continuing Care accommodation in Greenock; Our Lady and St Patrick’s High School, Dumbarton; Kirkintilloch Town Hall and St Flannan’s Primary School, Kirkintilloch, East Dunbartonshire, and West Dunbartonshire Council offices (only the early works has closed so far). As the main private sector shareholder of the public private joint venture organisation hub West Scotland, MSIL is delivering over £350 million of public sector infrastructure projects for 15 public sector organisations across Glasgow, Inverclyde, East and West Dunbartonshire, East Renfrewshire and Renfrewshire. Sister company Morgan Sindall Construction & Infrastructure is working with MSIL as main contractor on two of these schemes.
• North West, Priority Schools Building Programme: MSIL and its investment partner Equitix Limited, reached financial close on the Education Funding Agency’s North West, Priority Schools Building Programme batch. This is the third PF2 batch of schools to close and has a capital value of £110 million. The batch consists of five secondary schools and seven primary schools which will benefit 8,150 pupils across the North West. MSIL’s sister company Morgan Sindall Construction & Infrastructure is carrying out the design and construction of the schools which are based in Chester, Wigan, Blackpool, Birkenhead, Runcorn, Stockport and Manchester. The build programme is now under way with three schools handed-over in April this year and nine further schools due for completion between August 2016 and September 2017.
• STRIDE Burton: Strategic Transformation Real Innovation and Delivery Excellence Limited Liability Partnership (‘STRIDE LLP’), a joint venture between MSIL’s health sector subsidiary, Community Solutions Partnership Services Ltd (‘CSPS’) and Arcadis LLP, was appointed by Burton Hospitals NHS Foundation Trust as its Strategic Infrastructure and Efficiency Partner (‘SIEP’) to deliver significant efficiency savings, infrastructure projects and refurbishment works, ranging from £50,000 to £50 million over a 10-year partnering agreement. The partnership is now established and operational and aims to provide private sector expertise to develop a strategy that will support the transformation of the Trust’s estates by driving efficiencies and optimising asset and estate planning. Since the beginning of the year, the partnership has been actively progressing and has three significant developments in place which will close this summer. The first is a proposed 500-place multi-storey car park, a capital development of the A&E department, and the STRIDE team has project managed the disposal of a parcel of land for the Trust.
• Bournemouth Development Company has reached financial close on Berry Court, a development of 113 high-quality apartments in the town centre for the private rental market. The £27 million housing project, which is being delivered for Bournemouth Council in partnership with affordable homes provider Radian, will replace a council-owned surface car park, providing high quality contemporary homes alongside a new multi-level public and residents’ car park.
The Bournemouth Development Company is a regeneration partnership delivering Bournemouth Council’s Town Centre Vision. The LABV scheme has a development value of between £350 million and £500 million and is a 50/50 joint venture Public Private Partnership between the council and MSIL. When completed, it will provide a range of residential and mixed-use development including leisure attractions, new housing, shops and offices across 16 sites under a 20-year scheme. The joint venture partnership is benefiting from the design and construction capability of Morgan Sindall Group including sister company Morgan Sindall Construction and Infrastructure.
• Slough Urban Renewal (SUR) has started on site at its second residential scheme, Wexham Green, a £40 million development of 104 new homes for Slough Borough Council which will be built by Lovell. Earlier this year saw the successful completed refurbishment of the Orchard Community Centre. The SUR-delivered Curve building is due to be officially opened in September providing a 4,500m² library and cultural centre for Slough. Arbour Park Community Sports Facility Phase 1 will also be completed in time for the start of the football season creating a 1,950 spectator stadium and 3G sports pitch. All three community facilities were constructed by sister company Morgan Sindall Construction and Infrastructure.
“MSIL remains focused on our maturing partnerships which are now delivering regeneration projects across the country ranging in diversity from residential and private rented sector through to schools, community and health buildings and football pitches,” says Lisa Scenna, managing director of Morgan Sindall Investments Limited. “We have demonstrated over the last six months that the MSIL offer has strength and breadth and we will continue to work with our partners across the UK to drive through regeneration.”