Morgan Sindall Construction half year highlights - August 2024

Morgan Sindall has posted a record set of half-year results and is on course to beat market expectations for the full year.

The listed contractor has seen its share price surge by more than 50% in the past 12 months as it continues to impress the city.

Today’s results for the half year to June 30 2024 show pre-tax profits up to £70.1m from £58m last time on turnover up to £2.2bn from £1.9bn.

Morgan Sindall’s fit out division delivered significant growth on the back of increased revenues with operating profit up 36% to £41.3m from £30.4m with an operating margin of 6.6%.

Construction delivered good revenue growth up 10% to £519m from £470m with an operating margin of 2.7% which saw operating profit up 18% to £14.1m from £12m.

A strong performance from Infrastructure saw revenue up 24% to £530m from £428m at steady operating margin of 3.7% delivering operating profit up 24% to £19.7m from £15.9m.

Chief Executive, John Morgan said: “We’ve delivered another record set of results in the first half, once again reflecting the high quality of our operations, with revenue, adjusted profit before tax and the interim dividend all showing strong mid to high double-digit growth in the period.

“The challenging market conditions that we experienced in 2023 are easing, as we continue to make significant strategic and operational progress across the Group and remain well positioned to support the Government’s affordable home and social infrastructure plans.

“Our balance sheet, supported by a substantial average daily cash position, has enabled us to focus on making the right decisions to drive for long-term sustainable growth while also supporting the returns to shareholders in the period.

“Following our strong trading performance in the first half, combined with the high-quality secured order book and visibility for the rest of the year, we now expect to deliver a result for the full year which is slightly ahead of our previous expectations.”