Analysts expecting pre-tax profit of around 拢134m this year

Morgan Sindall said trading is continuing as normal with the firm saying it is on track to hit expectations with analysts previously forecasting pre-tax profit to be around 拢134m this year.

At its annual results in February, announced on the day Russia invaded Ukraine, the firm said pre-tax profit last year was 拢126m on revenue of 拢3.2bn.

In a trading update this morning, the firm said 鈥渃ontinued inflationary headwinds have provided for a more challenging economic backdrop鈥� since its interim results announcement in August.

Morgan Sindall

Morgan Sindall said its infrastructure business will hit its target margins this year

But it added: 鈥淭rading across the Group has been robust and with its high-quality secured workload giving good forward visibility, the Group is on track to deliver a full year performance in line with its expectations.鈥�

Analysts are expecting pre-tax profit this year to be between 拢132m and 拢134m and turnover to be around 拢3.4bn.

The firm said that margins at its construction and infrastructure businesses would be in their target ranges of 2.5% to 3% and 3.5% to 4% respectively.

Fit out was in line for a 鈥渧ery strong鈥� year, it added, but partnership housing had seen sales slip in recent weeks following turmoil caused by the mini-budget in September, since abandoned by new prime minister Rishi Sunak. It said that the costs of carrying out repairs to fix historic cladding defects remained at between 拢40m and 拢50m.

Average daily net cash between 1 January and 28 October was 拢260m with the firm adding that average daily net cash for the full year is expected to be around 拢250m.

The firm is expected to release its annual results next February.

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