The firm predicted strong growth for 2021 at the time of its last results but performance in the first four months has put the group on track to out-perform all expectations .
In an upbeat trading statement this morning, chief executive John Morgan said all divisions had made further positive operational and strategic progress in their markets and momentum had continued to increase.
He said: “Since the start of the year, the positive momentum across the group has continued to accelerate and with the group geared towards demand for affordable housing, urban regeneration and infrastructure and construction investment, I am excited by the significant opportunities ahead.
“Our high-quality secured workload and our operational delivery capabilities give us great confidence for the rest of the year and as such, we expect to deliver a full-year performance significantly ahead of our previous expectations.”
Morgan Sindall’s strong cash position has also further improved with average daily net cash for the full year now on track to be in excess of £180m.
Across the firm’s divisions, infrastructure is continuing to trade strongly and deliver margin growth.
Construction’s secured order book at the end of March is now up 10% from the year-end position.
The Fit-out division has had a very strong trading period and its secured order book at the end of March is 18% higher than at the year end.
The specialist business has over £400m of work currently at preferred bidder stage and is now expected to deliver profits that are ‘materially ahead of its medium-term target‘.
Partnership Housing has continued to see high levels of market demand, which together with ongoing improvements in operational delivery, is driving good margin and profit growth.