Morgan Sindall has reported strong profit growth in its final results for the year ended 31 December 2017.

The Group revealed pre-tax profit increased 46% to £66.1m in 2017, up from £45.3m in 2016, with revenue also rising 9% to £2,793m (2016: 2,652m).

Results were driven by the performance of the company's Fit-Out division, with revenue growth of 16% to £735m and a 42% rise in operating profit to £39.1m. Construction & Infrastructure also made progress, recording a divisional operating profit of £20.4m (FY 2016: £8.9m).

However, further progress in Property Services was impacted by restructuring costs in the year, with the division making a £1.3m loss. Yet, Morgan Sindall said the division is now better placed to "benefit from its workload in future years".

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Chief Executive, John Morgan, said the results are evidence of the "significant operational progress being made across the Group".

"Our positive cash generation and increase in average net cash in the year has further strengthened our balance sheet and provides us with the flexibility to invest in our regeneration activities whilst allowing us to continue being highly selective with bidding in our construction activities," he said.

"Looking ahead to 2018, we expect continued margin progression in Construction & Infrastructure, another strong performance from Fit Out, further growth from Urban Regeneration and Partnership Housing and positive contributions from Property Services and Investments.

"Consequently, we are confident of another good year of progress and with this positive momentum, are well-placed to deliver a result for the year which is slightly above our previous expectations."

(LM)