Public projects lift for Morgan Sindall

"We are having a bit of fun in this recession," declared Morgan Sindall chairman John Morgan today as the construction firm bucked the trend seen elsewhere in the industry with record results.

Revenues were up 20% to £2.5 billion last year, profits rose 8% to £62.3 million, and Morgan is lifting the dividend 11% to 42p.

The bullish update reflected Morgan's focus on Government building projects in education, healthcare and transport. The firm also benefited from its acquisition of Amec's urban regeneration arm in mid-2007.

Profits at Morgan's construction business jumped 94% thanks to the deal and demand for new schools and college buildings, which offset the downturn in commercial property. Its infrastructure business was given a boost by Tube tunnelling contracts at Shepherd's Bush and King's Cross.

However, the office fit-out unit suffered from the turmoil in the City and beyond while the affordable housing division was hit by the collapse of the housing market.