Morgan Sindall Group PLC (LON:MGNS) shares held up, rising 11.45% in early deals, as it released first half results confirming the significant impact of the coronavirus (COVID-19) pandemic.
The construction firm reported a 52% drop in adjusted operating profit down to £18.1mln, while adjusted pre-tax profit fell 57% to £15.7mln. Earnings per share slumped to 27.4p, down to 27.4p.
Reported operating profit was marked at £16mln, down 56%, while pre-tax profit was down 62% at £13.6mln.
Net cash amounted to £146mln at the end of the half.
The company highlighted that it saw improved visibility for the second half, and, it reinstates full year guidance which is set at £50-60mln. It added that it intends to return all payments received under the Coronavirus Job Retention Scheme during the second half.
The builder decided not to pay an interim dividend. It said that it will actively consider the resumption of dividend payments once there’s further clarity over the economic outlook and business interruption risks.
"These results reflect the inevitable impact on our business of the COVID-19 pandemic,” said John Morgan, chief executive.
“The business is having to continually adapt in this changing environment and I am extremely thankful to all our employees for their professionalism and dedication as we adjust to new ways of working safely and productively.
“Throughout this challenging period, the Group has demonstrated its resilience, with an improved cash position strengthening our balance sheet and providing significant available liquidity.”