Muse Developments contributes to Morgan Sindall Group plc’s half year results
Urban regeneration and property development company Muse Developments, which has offices in London, Manchester, Leeds and Glasgow, 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.
Muse has had a strong start to the year, moving forward on 36 regeneration schemes across the UK. Muse currently has 15 projects on site, with a total construction value of £483 million, and is expecting to place a further £825 million of construction contracts in 2020. The company’s order book and forward development pipeline now stands at £2.2 billion, with Muse being selected as preferred developer on a further three projects this year with a total gross development value of £350m.
Matt Crompton, managing director at Muse, said: “The first half of 2019 has been positive, with significant progress on many of our key regeneration schemes across the UK. We continue to work closely with our partners to create exceptional new places, creating real value for local authorities, occupiers and communities.
“Some of our highlights include four, complimentary phases underway at Salford Central, a major pre-let and funding deal at Logic Leeds and residential sales in Brixton, Brentford, Tottenham Hale and Stockton-on-Tees.
“There’s much work still to do, but we’re well-positioned for our full year expectations, as construction progresses well on a number of projects and residential sales continue positively across the country.”
Some of Muse’s key developments across the UK include:
• The £650m Salford Central regeneration scheme which is transforming 50 acres of the city’s historic core. Four projects are currently under construction, including office schemes Two New Bailey Square, Riverside House and Three New Bailey, as well as the third phase of residential development at The Slate Yard. The scheme is being delivered by The English Cities Fund – a joint venture between Muse, Homes England and Legal & General.
• The ‘Your New Town Hall’ project in Brixton which has delivered a modern and sustainable 120,000 sq ft new civic office, the restoration of the Grade II Listed Lambeth Town Hall, new homes and new civic and community spaces.
• Flagship industrial and distribution development, Logic Leeds, where a forward-funding deal was recently completed with Aberdeen Standard Investments for a 361,000 sq ft unit, with a pre-let agreed with a high profile global occupier.
• The £107m Marischal Square development in Aberdeen, which was crowned regeneration project of the year at the 6th annual Scottish Property Awards in February.