WARWICKSHIRE, UK, August 6, 2007 -- Leading infrastructure services company Morgan Est, which last month added Amec plc's civil engineering business to its expanding operations, has contributed to another set of record half year results released today (6 August 2007) by parent construction and regeneration group Morgan Sindall plc.
Morgan Sindall, which has five specialist divisions of affordable housing, construction, development, fit out and infrastructure services, has announced record results for the six month interim period to 30 June 2007. Profit before tax rose by 18 per cent from £21.3 million in 2006, to £25.2 million in 2007 on an increased revenue of £836 million up from £674 million last year. The Group's forward order book stands at a record £4.1 billion (2006: £3.4 billion). Earnings per share for the period grew by 16 per cent to 41.1p from last year's 35.4p per share. The Board has declared an increased interim dividend up by 25 per cent to 10.00p from 8.00p in 2006.
Morgan Est operates within the UK's utilities, civil engineering, defense, rail and tunneling sectors. The company which has a current forward order book of £1.5 billion, has secured a series of major projects in the last six months. These include a £330 million joint-venture contract from the Highways Agency to widen the M1 motorway from junction 25-28. The project, due for completion in 2009, is worth up to £110 million to Morgan Est.
Other key contracts secured by Morgan Est this year include a £38 million project to design, construct and commission a 4.9km tunnel in south London for Thames Water. The company has also been appointed preferred bidder by EDF Energy Networks for a four-year contract, worth up to £48 million, to upgrade overhead lines across East Anglia. Morgan Est has also gained two big water schemes: a £31.5 million contract to upgrade Frankley Water Treatment Works (WTW) in Frankley, Birmingham for Severn Trent Water, and a five-year, £50 million framework agreement with South East Water to carry out mains repairs, maintenance, metering and main laying activities in East and West Sussex and west Kent.
In the rail sector, Morgan Est is currently undertaking a number of major projects in London including a £55 million program of tunneling works at King's Cross and a £33 million program of Underground works for London Underground.
In Scotland, Morgan Est is building the £90 million A876 Upper Forth Crossing at Kincardine with joint-venture partner VINCI Construction for Transport Scotland, and delivering a 20 per cent share of a £700 million program of water infrastructure improvements for Scottish Water.
Parent company Morgan Sindall's acquisition last month of Amec plc's national construction and civil engineering business, Design and Project Services Limited (DPS), has further enhanced Morgan Est's UK service offerings. DPS, whose clients include the MoD, the Highways Agency, Welsh Water and BAA, undertakes a wide range of projects worth from £5 million up to £320 million.
"This is a very exciting time in the development of the company which is seeing good growth opportunities across all its operating sectors. The addition of Amec DPS increases our capability in the tunneling, water and roads sector and gives us entry into new sectors such as defense and energy. It also gives Morgan Est the ability to compete for larger and more complex infrastructure projects," explains Mark Cutler, Morgan Est's managing director. "The UK infrastructure market remains strong and our prospects are good for the second half of this year. Renewed Government investment in improving the country's transport, air and rail networks, as well as the lead-up to the 2012 London Olympics, should also generate new opportunities for Morgan Est."
Morgan Est is a leading UK provider of infrastructure services across the public and private sector. The business which specializes in the design and delivery of complex engineering projects, provides specialist tunneling, civil engineering and mechanical and electrical services to the defense, water, utilities, transport and rail sectors. It is a member of Morgan Sindall plc, the construction and regeneration group which operates through five specialist divisions of affordable housing, construction, development, fit out and infrastructure services.
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