The latest turnover estimate is short of the £200m first anticipated when chairman John Morgan quickly snapped up the chance to buy Connaught Partnership’s jobs.
For most part, the shortfall is down to several former Connaught clients electing to rebid work rather than handover frameworks to Sindall.
Morgan Sindall said its affordable housing business could now offer a unique new-build, refurbish and planned response and maintenance service to local authorities seeking efficiencies in the wake of the Comprehensive Spending Review.
The deal also strengthened Lovell’s national coverage in the south west.
In a trading statement. Morgan Sindall said: “We currently expect the Connaught transaction to add around £100m of revenue in 2011, although we do not expect the full profit benefit until 2012 as we realise efficiencies in the contracts acquired.”
The group has taken one-off costs of £3m to cover transaction and integration costs.
Across the restructured group, Morgan Sindall said it was on track to meet expectation for this year.
It remains in a strong position with a £3.7bn order book, average cash at £64m and £100m of committed banking facilities.
Big construction wins in last six months
- Accommodation for the Royal Veterinary College (£16m)
- Manufacturing plant for Aggreko (£20m),
- Academic buildings for Teesside University (£8m)
- Job at University of Sussex (£18m)
- A joint-venture framework for Yorkshire Water (£75m over five years)
- Multi-element regeneration project at Stockbridge for Knowsley Metropolitan Borough Council (£19m)
The newly-formed construction and infrastructure division is being confronted with varying markets. Traditional construction is being hit by spending cuts, but infrastructure markets remaining bouyant.
The Overbury fit-out arm expected to have a better second half, although the market outlook has softened over the past few months as the long term pipeline of projects weakened.