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Morgan Sindall Group PLC on Tuesday upgraded full-year expectations for two of its divisions after a profit boost in the first half. The London-based construction and regeneration company posted pretax profit of £95.4 million for the six months that ended June 30, 36% ahead of £70.1 million the year prior. Revenue rose 7.0% on-year to £2.37 billion from £2.21 billion. Morgan Sindall upped its interim dividend per share to 50 pence from 41.5p, an increase of 20%. Basic earnings per share came to 155.7p in the first half, up 38% from 113.1p the previous year. The company has raised guidance for its Fit Out and Construction businesses. Fit Out, operated by subsidiary Overbury PLC, refurbishes commercial sites alongside government and educational facilities. The branch contributed £837.6 million in revenue during the first half. For the full-year, Fit Out expects to generate an operating profit between £80 million and £100 million, up from the previous guide range of £60 million to £85 million. Construction was the second-largest contributor in the first half, accounting for £522.8 million of revenue. The division is targeting full-year revenue in excess of £1.5 billion, compared with previous guidance above £1 million, at an operating margin between 3.0% and 3.5%. Expectations for Partnership Housing, Mixed Use Partnerships, Infrastructure and Property Service remain unchanged. Net cash was £390 million at June 30, up 11% versus £351 million on-year. ‘We have continued to make significant strategic and operational progress across the group,’ commented Chief Executive John Morgan. ‘Expectations for the group are underpinned by the medium-term fundamentals for Fit Out which are expected to remain favourable, together with both our UK construction and partnership programmes which expect to benefit from the recent government investment commitments.’ The firm noted the UK’s government’s £39 billion commitment to affordable homes over the next 10 years, which Morgan Sindall described as ‘the largest cash injection into social housing over the last 50 years’. The company hailed a settlement which allows landlords for social housing to raise rents 1% above inflation rates, suggesting this will provide social housing associations with ‘visibility over revenue’. CEO John Morgan added: ‘The strength of our first half performance, together with the visibility provided by our high-quality and growing order book for the remainder of the year, places us in a strong position to deliver an outcome for 2025 which is in line with our current expectations.’ Morgan Sindall shares were 2.8% higher at 4,585.00 pence on Tuesday morning in London, for a market capitalisation of £2.20 billion. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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