Firm’s fit-out business continues to boom
Morgan Sindall said profit for the full year will be ahead of previous guidance after turning in a record set of interim figures.
Analysts has been expecting pre-tax profit for 2024 to come in at around £146.5m but chief executive John Morgan said: “We now expect to deliver a result for the full year which is slightly ahead of our previous expectations.” Profit is now expected to be around 5% higher than previously estimated.
The firm posted a pre-tax profit of £144m, a rise of two-thirds, last year and revenue up 18% to £4.1bn.
In the six months to June, Morgan Sindall saw turnover jump 14% to £2.2bn with pre-tax profit up 21% to £70m.
Its fit out business was the biggest during the period with revenue of £630m, a rise of 26%, and operating profit up one third to £41m giving an operating margin of 6.6%.
The construction business saw workloads grow 10% to £519m with an operating profit of £14m while its infrastructure business posted a 24% rise in revenue to £530 with operating profit up a quarter to close to £20m.
Its partnership housing saw revenue up 2% to £381m with operating profit up 16% to £11.7m.
Morgan said inflation was less of an issue than it was 12 months ago. “Inflation is now manageable, it was a big headwind last year.”
Its average daily net cash was up from £268m to £372m and Morgan added: “Never underestimate how a strong balance sheet makes a big difference. A poor balance sheet gives you fewer options.”
Its order book was down £200m to £8.7bn.
No comments yet