Our business model

The Group offers expertise in construction and regeneration to create better places to live, learn and work.

We operate through six divisions:  Construction & Infrastructure, Fit Out, Property Services, Partnership Housing, Urban Regeneration and Investments.

Our construction activities generate cash that we invest in our regeneration activities to deliver longer-term value.

Construction's progress is measured by margin and working capital, while regeneration is measured by return on capital employed.



The commentary below shows how we use our resources and relationships to generate positive outcomes for our stakeholders.

Clients
  • We work in close collaboration with clients to understand their business and use the expertise of our people to develop an offering bespoke to their needs. 
  • We form strong strategic alliances with clients, landowners, funders and joint venture partners, enabling us to provide the greatest value.
  • We have a broad range of expertise and can support our clients through all stages of the asset lifecycle from development to design, build, maintenance and refurbishment.
  • We always strive to enhance the client experience and to achieve Perfect Delivery which drives continuous improvement and higher standards of quality and service across all operations. Projects must meet four division-specified criteria such as delivering what we said we would and on time. 77% of our completed projects achieved Perfect Delivery in 2015. We proactively seek client feedback to identify strengths and recognise areas that require improvement.
People
  • We create a safe working environment for all employees by rigorously applying the highest standards in health and safety processes and procedures.
  • The skill, expertise and commitment of our people enables us to deliver complex projects for our clients.
  • We focus on recruiting and retaining the best people to help us generate the most value for our clients. Our People Promise given to all employees explains what they can expect from the Group and their team members and, in turn, what is expected from them.
  • We provide opportunities for our people to continuously develop their careers through training and mentoring.
  • The Group operates a decentralised philosophy, empowering our people to think differently and be innovative.
Capital
  • The Group has chosen to specialise in construction and regeneration, which have complementary cash and capital characteristics.
  • Construction is cash generative as there is typically a short time lag between payments being received from clients and payments being made to the supply chain.
  • Conversely, regeneration is capital intensive as many schemes take a number of years to complete and require a significant investment in inventories. To mitigate this we minimise the use of our funds by working collaboratively with landowners to avoid the need to purchase land on the open market and use opportunities to forward sell schemes.
  • We have good relationships with banks and other financial institutions which help to ensure that sufficient competitively priced debt facilities are available.
Supply chain
  • The Group’s scale enables us to procure goods and services as effectively as possible while being flexible enough to meet changing economic conditions and client needs.
  • The ‘Morgan Sindall Family’ affords 300 of our manufacturers and suppliers access to two information hubs that provide them with a pipeline of work. This also provides the Group with a high performing and trusted supply chain.
  • We manage payments effectively and actively and are subscribers to the Prompt Payment Code.
  • We have subcontract schemes to attract smaller businesses such as the ‘contractor of choice’ and build long-term relationships with suppliers who share our ethos of Perfect Delivery.
  • As co-founders of the Supply Chain Sustainability School we offer free training in sustainability and associated topics.
  • We create a safe working environment for all suppliers and subcontractors.
  • We offer subcontractors the opportunity to share our Group agreements giving them access to better pricing.
Communities
  • Innovative techniques are developed to create energy efficient homes and buildings.
  • We seek to minimise the impact of our building works on local communities by adopting careful waste management procedures and complying with the requirements of the Considerate Constructors Scheme.
  • Where possible we use local employment and supply chains.
  • We operate safe and secure construction sites to minimise the possibility of a member of the community being hurt.