LONDON - Morgan Sindall Group plc, a prominent construction services company, has released a trading update indicating that profits for the financial year 2024 are set to surpass previous expectations, largely driven by significant growth in its Fit Out division. The company, which specializes in partnerships, fit out, and construction services, has seen its Fit Out profits strengthen considerably, with a 15% increase in its secured order book as of September 30, 2024, reaching £1.3bn.
Shares surged following the update, with the stock trading up 17% at 12:13 PM London time.
The Group's Partnership Housing division is also projected to perform slightly better than initially anticipated, attributing this to the expansion of long-term public sector partnerships. Although the Mixed Use Partnerships trading has been subdued, the division has successfully maintained preferred bidder positions for several large-scale UK projects.
Construction and Infrastructure segments are meeting their revenue and margin targets for the medium term this year, aligning with the company's strategic objectives. The Property Services division is on course to complete its remediation plan by the end of 2024, with a return to profitability expected in 2025.
Morgan Sindall boasts a robust balance sheet, with daily average net cash from January 1 to October 18 reported at £374m, a significant increase from £273m during the same period last year. The full-year average daily net cash is anticipated to exceed £350m, consistent with prior forecasts.
The Group's total secured order book stood at £8.9bn as of September 30, 2024, marking a 3% increase from the mid-year and matching the year-end position of 2023. This reflects a strong and high-quality workload for the company moving forward.
Investors are advised to look forward to February 19, 2025, when Morgan Sindall will announce its full year results for the period ending December 31, 2024. This trading update, which is based on a press release statement, suggests a robust financial performance and a positive outlook for the company in the coming year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.