The developer behind the £107million Marischal Square development enjoyed a shares boost after it revealed its profits had swung back into the black.
Morgan Sindall, owner of Muse Developments, booked a £15.4million pre-tax profit in the first half of the year, coming back from a £27.2million loss in the prior year.
The FTSE-listed construction and regeneration group said it was able to boost its profitability across its divisions, up 30 basis points, although the largest increase was found in its construction & infrastructure division which is currently overseeing works at the Aberdeen city centre site.
The London-headquartered company reported “an improved profit performance” in the construction division where operating profit rose to £3.2million, up from £300,000 in the prior year. The division is also responsible for ongoing projects at Heathrow Airport, Sellafield and the £250million Edinburgh to Glasgow Rail Improvement Programme.
The group gave no further update on the Marischal Square project except to say it remained on track for completion in July 2017.
Stephen Turner, regional director for Scotland at Muse Developments, said: “It’s been a strong start to the year for Muse in Scotland with work ongoing at our major Marischal Square project in Aberdeen.
“Construction is progressing well on this important, mixed-use scheme which will transform a key part of the city centre, bringing much-needed new business and leisure opportunities to the area. Earlier this year, leading UK bar and restaurant chain, All Bar One, agreed a deal with us to establish its first presence in the city.”
Aberdeen Journals, publishers of the P&J and Evening Express, is poised to be among the first tenants to move into the £107million office development on Broad Street when it opens next year.
John Morgan, the firm’s chief executive admitted that the EU Referendum result has introduced “some uncertainty” into its markets. But he added it was “still too early to determine what the potential impact on the group will be in the medium and longer term”.
He added: “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.”
Shares closed 7% higher to 610.5p.
