[UK] Morgan Sindall pledges £9m furlough payback despite profits halving

Morgan Sindall's profit fell by more than half in the first six months of 2020 due to the COVID-19 pandemic. Results for the six months to the end of June showed pre-tax profit - that stood at £35.5m for the same period in 2019 - had dropped to £13.6m. On August 5 the firm reported that revenue was down around 5 per cent from £1.42bn to £1.36bn.

All its divisions except infrastructure had revenue falls, dragging down profit as fixed costs consumed more income. However, only property services actually reported an operating loss for the period, amounting to £500,000. Despite the profit plunge, Morgan Sindall has pledged to the repay £9.3m it claimed under the government's coronavirus jobs retention scheme. Construction News explores the firm’s decision.

Morgan Sindall's profit fell by more than half in the first six months of 2020 due to the COVID-19 pandemic. Results for the six months to the end of June showed pre-tax profit - that stood at £35.5m for the same period in 2019 - had dropped to £13.6m. On August 5 the firm reported that revenue was down around 5 per cent from £1.42bn to £1.36bn.

All its divisions except infrastructure had revenue falls, dragging down profit as fixed costs consumed more income. However, only property services actually reported an operating loss for the period, amounting to £500,000. Despite the profit plunge, Morgan Sindall has pledged to the repay £9.3m it claimed under the government's coronavirus jobs retention scheme. Construction News explores the firm’s decision.