The company said it now expects full-year profit before tax to be “significantly ahead of previous expectations”, citing strong trading momentum and improved visibility across key parts of the business. The update follows the group’s full-year results announcement on 25 February 2026.

Private housing activity improved in the first quarter compared with last year, but the group noted that consumer sentiment remains subdued due to wider macro‑economic pressures. Profits are now expected to show modest growth versus FY 2025 (£42m).

Average capital employed remains on track at £490m–£550m, reflecting ongoing development stages and continued investment in future partnership opportunities.

Performance is expected to remain in line with guidance, with the division focusing on progressing new schemes. Four projects started on site in Q1, with 13 more planned for the rest of the year. Capital employed is forecast at £135m–£150m.

Confidence has strengthened significantly, with improved conversion of preferred bidder work and a strong pipeline of tenders.

Profits are now expected to be well ahead of previous expectations, surpassing the top end of the division’s medium‑term target of £80m–£100m.

A disciplined focus on delivery and risk management is paying off. Operating margin is expected at the top end of the 3.0%–3.5% target range.

Revenues are forecast to reach around £1.4 billion, supported by a high‑quality order book and strong preferred bidder positions.

The division continues to progress planning and design work on major frameworks while maintaining strong operational performance.

Operating margin is expected at the top end of the 3.75%–4.25% range. Revenues remain unchanged from earlier guidance.

Between 1 January and 14 April 2026, the group recorded average daily net cash of £445m, up from £372m in the same period last year. This includes £52m held in jointly controlled operations or reserved for designated suppliers.

For the full year, average daily net cash is expected to exceed £400m, consistent with previous guidance.

Morgan Sindall will provide a further update at its AGM on 7 May 2026, with half‑year results scheduled for 23 July 2026. The group’s upgraded outlook suggests a year of strong momentum, underpinned by disciplined execution and improved visibility across several core divisions.