Morgan Sindall: Profit at construction firm set to surpass expectations
Construction firm Morgan Sindall expects to deliver profit ahead of expectations when it announces its full year results early next year.
In an update to the market, the FTSE 250 firm expects its profit to be “significantly ahead” of its previous expectations thanks to a strong performance from its Fit Out division, which works to make an interior space liveable.
Profits in the division have continued to “strengthen significantly” due to exceptional volumes and will “materially exceed” expectations, it said.
Its secured order book was £1.3bn at the end of September, up 15 per cent from the end of last year.
Morgan Sindall said that profits from its partnership housing division are expected to come in slightly ahead of expectations as it continues to grow its partnerships with the public sector.
Both construction and infrastructure are also on track to meet their medium-term targets.
While trading has remained subdued in Mixed Use Partnerships, Morgan Sindall said the division had been “successful in securing and holding preferred bidder positions for several sizeable schemes across the UK.”
The total order book at the end of September was £8.9bn, up three per cent from its half year results and in line with the 2023 year end position.
It will announce its full year results on 19th February.
This comes after construction activity increased at its fastest pace for nearly two-and-a-half years in September, according to the most recent S&P’s purchasing managers’ index (PMI) for the sector.