Firm鈥檚 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 拢146.5m but chief executive John Morgan said: 鈥淲e now expect to deliver a result for the full year which is slightly ahead of our previous expectations.鈥� Profit is now expected to be around 5% higher than previously estimated.
The firm posted a pre-tax profit of 拢144m, a rise of two-thirds, last year and revenue up 18% to 拢4.1bn.
In the six months to June, Morgan Sindall saw turnover jump 14% to 拢2.2bn with pre-tax profit up 21% to 拢70m.
Its fit out business was the biggest during the period with revenue of 拢630m, a rise of 26%, and operating profit up one third to 拢41m giving an operating margin of 6.6%.
The construction business saw workloads grow 10% to 拢519m with an operating profit of 拢14m while its infrastructure business posted a 24% rise in revenue to 拢530 with operating profit up a quarter to close to 拢20m.
Its partnership housing saw revenue up 2% to 拢381m with operating profit up 16% to 拢11.7m.
Morgan said inflation was less of an issue than it was 12 months ago. 鈥淚nflation is now manageable, it was a big headwind last year.鈥�
Its average daily net cash was up from 拢268m to 拢372m and Morgan added: 鈥淣ever underestimate how a strong balance sheet makes a big difference. A poor balance sheet gives you fewer options.鈥�
Its order book was down 拢200m to 拢8.7bn.
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