The £200million regeneration of Millbay in Plymouth has helped bring £24.9million profits for a partner in the scheme.
Urban regeneration specialists Muse Developments has contributed to half year results released today by parent company Morgan Sindall Group PLC, which also has an office in Plymouth.
The Group has delivered strong profit growth in the first half of this year with operating profit up 37% to £24.9m (HY 2016: £18.2m) on revenue of £1,307 m (HY 2016: £1,148m), a 14% increase on the previous half year.
READ NEXT: Former North Devon pub transformed into Italian restaurant
Morgan Sindall is currently on-site for three £3.5million expansion projects at schools in Devon.
The firm is replace temporary classroom blocks with a new school building at Withycombe Raleigh Primary School in Exmouth to accommodate an increasing number of pupils in the Exmouth area and will be completed in time for the 2017 academic year.
It is constructing a £1.8million sports and fitness building at Honiton Community College and designing and building a new teaching and training space at Combe Pafford School in Torquay. The £642,000 project includes the delivery of a two-storey teaching block which will include three classrooms, a hair dressing salon and an office for staff.
It is also creating a new residential building for students at Marland School in Great Torrington.
The £2.8 million project will be delivered over two phases. Phase one will see the Morgan Sindall team deliver a new building complete with 28 single student bedrooms, each with their own en-suite facility. Phase two will involve the refurbishment of the existing residential facilities, which will be converted into 16 single bedrooms.
The Group reports an order book of £3,801m, a 5% rise from £3,637m. Adjusted earnings per share were up 46% for the period to 43.6p (HY 2016: 29.8p). The interim dividend has been increased by 23% to 16.0p per share (HY 2016: 13.0p) with the Group confident of another strong performance in the second half of the year.
READ NEXT: Devon’s luxurious Gaia Spa has a new woman at the helm
In Plymouth, plans have progressed for a further phase of residential development at English Cities Fund’s (ECf) Millbay scheme which is due to start later this summer.
ECf is a joint venture between Muse Developments, Legal & General and the Homes & Communities Agency.
The new housing development will feature a mix of 137 houses and apartments with associated parking. The scheme is transforming a 15-acre harbourside area into a vibrant new waterfront community focused around the city’s historic docks. The overall Millbay regeneration project includes 600 dwellings, business and retail space, and the creation of a leisure and cultural destination at the heart of scheme.
Michael Auger, regional director for the South at Muse Developments, said: “It’s been a strong start to the year for Muse in the South, with significant progress on many of our regeneration schemes across London and the South West.
“We have completed an NHS Health Centre at our Kimmerfields development in Swindon and enabling work is underway on the second phase of residential at our Wapping Wharf scheme in Bristol. Work will start later this summer on a further 137 homes at our joint venture English City Fund’s Millbay scheme in Plymouth.”
During the first six months of this year, Muse moved forward on 23 projects with a total construction value of £385 million. The company which expects a further £227 million of contract awards over the next 12 months, also maintained a healthy order book and development pipeline, which now stands at £2.4 billion.
Source: Devon live