Construction and regeneration group Morgan Sindall has turned around a loss-making 2015 with an improved performance across all divisions.

Half year results for the six months to 30 June 2016 revealed a 17 per cent increase in operating profit before amortisation and exceptional operating items to £18.2 million (HY 2015: £15.5m) on revenue of £1,148m (HY 2015: £1,152m).

The Group reported an order book of £3,148m, an 11 per cent increase from £2,826m, supported by a £3.2 billion pipeline of regeneration schemes, up 1 per cent on the previous year end position.

Morgan Sindall reported in February a pre-tax loss of £14.8m for 2015, largely due to having to writedown £47m on the back of problems jobs at the Faslane naval base in Scotland.

Adjusted earnings per share saw a 22 per cent rise for the period to 29.8p (HY 2015: 24.5p). The interim dividend has been increased by 8 per cent to 13p per share (HY 2015: 12.0p) with the Group on track to deliver a full year result slightly above previous expectations.

Chief executive John Morgan said: “The Group has delivered strong profit growth in the first half, with an improved cash position and lower average net debt across the period. All divisions have contributed, demonstrating the strategic and operational progress made across the Group over the last few years.

“The EU Referendum result has introduced some uncertainty into the markets in which we operate and it’s still too early to determine what the potential impact on the Group will be in the medium and longer term. For the current year, however, based upon current trading patterns, our high quality secured order book and the visible pipeline of opportunities, the Group is on track to deliver a full year result slightly above its previous expectations.”

During the first six months of this year, Group member Lovell has been working with housing associations and local authorities on new affordable housing developments, major housing refurbishment schemes and regeneration programmes across the UK.

Lovell managing director Jonathan Goring said: “The housing market has continued to thrive through 2016, with values holding well and demand strengthening for the Lovell offer to local authorities and housing associations. Demand is supported by the increased appetite for central and local government to release land and encourage a collaborative approach to planning, in order to promote development of new homes and generate land receipts and income.

“The result of the EU referendum has thus far had no effect on house sales and levels of activity in our main areas of operation. We continue to insulate ourselves from the political and local effects by focusing on long-term partnerships and strategic land assembly and we avoid reliance on lower margin contracting in favour of longer term, secure pipeline work. Refurbishment remains core to our business and we continue to deliver strong performance in partnership with local authorities.

“Our avoidance of the over-heated central London residential market has paid off, as has our focus on outer city regeneration schemes, such as our 1,500-home development in Woolwich, which recently began on site and The Mill in Cardiff, where work starts later this year.”