2024 was another record year for Morgan Sindall Group, reflecting the high quality of our diverse operations underpinned by the talent and commitment of our people, delivering significant double-digit growth for both adjusted profit before tax and the full year dividend, supported by our high-quality orderbook.

Group revenue increased by 10% to over £4.5bn, while adjusted operating profit before tax was up 19% to £172.5m. The Group’s balance sheet remains strong with net cash of £492m, and its high-quality secured order book of £11.4bn, up 28% on the prior year leaves the Group well-positioned for the future and on track to deliver an outcome for 2025 which is in line with its current expectations.

As expected, Infrastructure delivered another strong performance in the year, with both profits and margin influenced by the timing and nature of projects delivered through its frameworks, while still ensuring a high-quality operational delivery across the business. Revenue increased by 18% to £1,047m (FY 2023: £887m) with operating profit of £38.5m, in line with the prior year (FY 2023: £38.5m) supported by an operating margin of 3.7% in the middle of its targeted range of 3.5% - 4.0% (FY 2023: 4.3%).

Infrastructure's order book of £1,883m was 11% up compared to the prior year (FY 2023: £1,689m). The order book continues to remain long term in nature, with around 98% derived through existing frameworks.

The division continues to remain focused on the key sectors of energy, nuclear, rail, highways, water and defence, with visible opportunities in defence. Its markets have significant long-term committed investment programmes in place, largely driven by government and regulatory objectives. The division continues to see its clients awarding large long-term frameworks with its delivery partners, awarding projects focused on delivering the strategic outcomes over the term of the framework.

Sector overview from 2024

The Energy team secured a position on the £9bn Great Grid Partnership, as part of the Accelerated Strategic Transmission Investment (ASTI) projects. The Great Grid Partnership will build new electricity network infrastructure required to reduce the UK's reliance on fossil fuels by connecting 50GW of offshore wind by 2030. 

In Scotland, the team secured a position as a strategic partner on ScottishPower's £5.4bn programme of contracts to deliver the biggest rewiring of the electricity grid since its inception. The partnership will run for an initial five years, with the option to extend up to 10 years. 

Elsewhere, work continued at Dinorwig in Wales, and commenced at ZA, in Hertfordshire as part of the RIIO T2 electricity construction EPC (Engineer, Procure and Construct) framework for National Grid. 

Work also continued in Shetland for Scottish and Southern Electricity Networks (SSEN), which includes an 11km, 132KV twin circuit underground cable project and construction of Gremista substation; this project will play a key role in the connection of the Viking wind farm, capable of generating 500MW.

Our Rail teams secured a position on the CP7 Eastern Framework for Network Rail, a £3.5bn framework which lasts through to 2029, adding to its position on the £2bn CP7 Wales and Western Framework secured in 2023.

Announced late in 2024, the division was appointed by Network Rail as a delivery partner for the overhaul of the Liverpool Street station roof at £22m.

Works continued on the remodelling of Colindale station for Transport for London, including a new ticket hall and step-free access. Elsewhere, works continued to progress on the extension to Beckton Depot and a project to upgrade Surrey Quays station, both for Transport for London as part of its London Rail Infrastructure Improvement Framework.

Several schemes for Network Rail continued to progress at pace, including the Bangor to Colwyn Bay line, as part of the CP6 Wales and Western framework, the lift scheme at Liverpool Central station as part of the Merseyrail framework, and the Northumberland Line extension project.

Our Nuclear teams continue decommissioning works at Sellafield on the Infrastructure Strategic Alliance (ISA) and the £1.6bn Programme and Project Partners contract. In addition, work progressed on the 10-year Clyde Commercial Framework for the Defence Infrastructure Organisation, while works completed on the D58 facility for BAE Systems in the year.

The Highways team continued to deliver the £87m, M27 project as part of the National Highways' Concrete Roads programme to replace the concrete surface of motorways on major A roads in England, while work completed on the A11 and A12 schemes, part of the same framework, improving traffic flow and safety for local commuters.

Our Water teams continued on various environmental improvement projects and wastewater treatment upgrades as part of the long-term AMP7 framework with Welsh Water, and the division's 30-year plus relationship with Welsh Water continues following its appointment on the AMP8 framework. 

Adding to its water portfolio, the team also secured a position on AMP8 with Wessex Water, as a capital delivery partner, over a five-year period.

In addition, civil engineering works continued to make good progress on the west section of the Thames Tideway 'super sewer' project to help prevent pollution in the River Thames.