Firm expected to turn in profit this year of around £170m, up 18% on last time
Analysts are expecting profit at Morgan Sindall to be around £170m when the firm publishes its 2024 results next February.
Pre-tax profit for 2024 had initially been expected to come in at around £146.5m but this was revised up in August on the back of record interim results to £155m and has now been revised upwards again after the firm said this morning profit would be ahead of expectations thanks to a booming fit-out division.
In a trading update, the firm said: “Following material profit growth ahead of expectations from the fit out division, the group now anticipates that its full year results for 2024 will be significantly ahead of its previous expectations.”
It said fit out was experiencing “exceptional volumes and is now expected to materially exceed the group’s previous expectations”.
The firm, which is also expected to raise profit forecasts for 2025 when it publishes its 2024 numbers, said the division’s order book at the end of September was £1.3bn, up 15% from the figure at the end of 2023.
It added that profits at its partnership housing business were “slightly” ahead of previous estimates while its main building and civils businesses were on track to meet their targets this year.
It added that between 1 January and 18 October, average daily net cash was £374m while it expected average daily net cash for the full year to be in excess of £350m.
In a note, broker Investec said: “We would expect FY24 consensus operating profit to move up significantly (by around +10%) on the back of this strong update, with an increase, albeit more moderate (c.+5-7%) for FY25. Another very strong update demonstrating the Group’s strong operating model and sound financial position.”
Last year, the firm posted a pre-tax profit of £144m, a rise of two-thirds, and revenue up 18% to £4.1bn.
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