Morgan Sindall FY performance to be 'slightly ahead' of expectations

8th Aug 2024 08:15

(Sharecast News) - Construction company Morgan Sindall said on Thursday that its full-year performance was set to be "slightly ahead" of its previous expectations after a record first-half performance.

In the half-year to 30 June, adjusted pre-tax profit rose 17% to £70.1m, with revenue up 14% to £2.2bn.

The company hailed a "significant" contribution from the fit out division, which saw operating profit rise 36% to £41.3m. Meanwhile, operating profit in the construction arm was 18% higher at £14.1m.

The order book dipped to £8.7bn from £8.9bn in the same period a year earlier, while the interim dividend was lifted 15% to 41.5p per share.

Morgan Sindall said the challenging market conditions seen in 2023 have continued to ease, with little increase in prices since the end of 2023. It said that while there remains some cost inflation in the system - mostly related to energy costs and wage inflation - the general trading environment overall remains "more manageable and predictable".

Chief executive John Morgan said: "We've delivered another record set of results in the first half, once again reflecting the high quality of our operations, with revenue, adjusted profit before tax and the interim dividend all showing strong mid to high double-digit growth in the period.

"The challenging market conditions that we experienced in 2023 are easing, as we continue to make significant strategic and operational progress across the group and remain well positioned to support the Government's affordable home and social infrastructure plans.

"Following our strong trading performance in the first half, combined with the high-quality secured order book and visibility for the rest of the year, we now expect to deliver a result for the full year which is slightly ahead of our previous expectations."