Morgan Sindall FY profits seen 'significantly ahead' of expectations

22nd Oct 2024 09:18

(Sharecast News) - Construction firm Morgan Sindall said on Tuesday that full-year profits would now be "significantly ahead" of previous expectations.

Morgan Sindall said its upgraded guidance was a result of material outperformance in its fit out division, which saw profits continue to strengthen significantly due to "exceptional volumes".

The FTSE 250-listed group said the unit's secured order book as of 30 September was £1.3bn, up 15% from its 2023 year-end position, providing it with confidence in the full year and beyond.

Morgan Sindall added that both its construction and infrastructure units were on target to meet FY revenue and medium-term margin targets, and its partnership housing arm was eyeing profits that were set to be "slightly ahead" of previous expectations.

Trading was said to have remained "subdued" in Morgan Sindall's mixed-use partnership division, and the group stated its property services unit's remediation plan was on track to be completed by the end of 2024 and was expected to return to profit in 2025.

Morgan Sindall also highlighted that it has "a high-quality workload", with a total secured order at 30 September of £8.9bn, up 3% from the half year and in line with the 2023 year-end position.

As of 0915 BST, Morgan Sindall shares were up 9.23% at 3,550.0p.

Reporting by Iain Gilbert at Sharecast.com