Morgan Sindall: Shares in FTSE 250 firm hit record high amid profit boom
Shares in Morgan Sindall hit a record high on Tuesday after it said annual profit would come in “significantly ahead” of expectations.
The firm’s stock soared more than 17 per cent in early deals to around 4,515p.
Morgan Sindall, the construction and regeneration group which employs over 8,000 people, said its outperformance had been driven by its fit out and construction segments.
The group said fit out, which recently secured workspace design projects in Mayfair and Bishopsgate, had seen strong trading activity at the start of the year which had continued into summer.
Its construction business, which has worked on infrastructure projects spanning rail, nuclear, water and highways, is set to exceed previous revenue forecasts.
However, annual operating margins are forecasted to fall in the middle of its medium-term target range of between three and 3.5 per cent.
Record run at Morgan Sindall continues
Analysts at Peel Hunt have predicted a divisional profit of £119m for the fit out segment.
“Industry activity, supply chain flexibility, and order book conversation at an attractive margin also provide increased confidence into 2026,” they added.
“Across its core construction markets, Morgan Sindall is performing well. In fit out, we assume some normalising of revenues and margins over the medium term, but we do not discount further near-term outperformance.”
Shares in the London-listed company are up more than 75 per cent over the past 12 months.
The group hiked dividends by 15 per cent in February to 131.5p per share, as it reported record revenues of £4.6bn.
On an adjusted basis, annual operating profit rose 15 per cent to £162.6m.
At the time, Morgan Sindall chief executive John Morgan said: “2024 was another record year, reflecting the high quality of our diverse operations and the commitment of our people.
“We achieved double-digit growth in adjusted profit before tax and increased the full-year dividend by 15 per cent, supported by our strong order book.”
Morgan Sindall will announce its half-year results for the six months ended 30 June at the tail-end of July.