Fit-out work surge boosts Morgan Sindall profits

Aaron Morby 2 weeks ago
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Strong growth at Morgan Sindall’s fit-out division helped the construction contractor hike pre-tax profit 50% in the first half of the year to £23m.

Morgan Sindall Group - John Morgan CEO
John Morgan said the group enjoyed a strong cash performance in the first half

The fit-out business is expected to drive growth for the rest of the year on the back of a record order book of £568m, up by over half on a year ago.

Chief Executive, John Morgan said operating margins were recovering at both fitout, now 4.3%, and the construction and infrastructure divisions, now up to 1.1%.

This helped to lift group pre-tax profits in the first six month of the year from £15m a year ago. Revenue rose 14% to £1.3bn.

 

Morgan Sindall trading in first six months
Revenue %rise Op. profit %rise %margin rise
Construction & Infrastructure £694m 13% £7.6m 138% 1.1% 60bps
Fit-out £339m 15% £14.6m 27% 4.3% 40bps
Property services £31m 15% £0.3m 200% 1.0% 60bps
Partnership Housing £200m 9% £5.5m 20% 2.8% 30bps
Urban Regeneration £71m £78% £2m -57% 0% n/a

Across the business there was a significant rise in average daily net cash to £132m. The group the order book rose 5% to £3.8bn.

Chief Executive, John Morgan said: “This is a strong set of results, driven by another period of margin and profit growth in fit-out and further progress on margin recovery in Construction & Infrastructure.

“With the current trading patterns in fit-out and the forward visibility provided by the size and quality of its order book, together with further margin improvement in construction & infrastructure and an increase in scheme completions in partnership housing and urban regeneration, we are confident of another strong performance by the group in the second half.”

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