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Morgan Sindall Group PLC on Thursday said it is trading ahead of expectations, as the London-based construction company reported a ‘record’ jump in interim revenue.
Revenue in the first half of 2022 climbed 9.0% to £1.70 billion, compared to £1.56 billion in the same period in 2021. Pretax profit was up 2.5% to £53.7 million from £52.4 million.
Notably, its Fit Out division recorded a strong increase in revenue and profit. Revenue grew by 20% to £457 million, while profit increased by 10% to £21.2 million
Total secured workload as of June 30 amounted to £8.52 billion, up 2% from the same date a year before. This includes a construction secured order book that totals £4.68 billion, up 14% from the prior year, and a regeneration secured order book that amounts to £3.87 billion, down 9%.
On the back of this, Morgan Sindall announced a 33.0 pence dividend, up 10% from 30.0p the year prior.
Looking ahead, Morgan Sindall expects full year performance to be ‘slightly above’ previous expectations. In February, the company upgraded its medium-term target for the Construction and Infrastructure divisions to revenue of £1 billion per year, having achieved £694 million and £826 million in 2021 respectively.
However, it also noted that inflationary pressures and supply chain issues are expected to continue through the second half of the year.
Chief Executive Officer John Morgan said: ‘With the more challenging economic backdrop, our strong balance sheet including a substantial net cash position is critical to operating efficiently and effectively. It allows us to continue making the right decisions and to best position us in our markets, giving us competitive advantage for continued sustainable long-term growth.’
Morgan Sindall shares were trading 0.6% lower at 1,970.00 pence each in London on Thursday morning.
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