Positive momentum continues to accelerate at Morgan Sindall

Morgan Sindall said today it anticipates that its full year results for 2021 will be “significantly ahead” of its previous expectations after a strong period of trading.

Since its last trading update on 22 April 2021, the firm said trading has been “strong” and the positive momentum across the group has continued to accelerate.

All divisions have performed well and group results for the six months to 30 June 2021 are expected to show profit before tax in the region of £53 million, reflecting growth of c238% on the 2020 half year result and up c46% on the 2019 ‘pre-pandemic’ comparative period. 

The cash performance has again been strong, with average daily net cash for the first half of £294m (HY 2020: £153m). The net cash as at 30 June was £337m (HY 2020: £146m).

The total group secured workload as at 30 June was £8.3bn, level with the year-end position and up 5% from the same time last year.

Performance by division:

  • Construction & Infrastructure has had strong margin and profit growth in the first half. This performance, together with the forward visibility provided by its order book, indicates a likely out-turn for the full year which is significantly stronger than previously expected.
  • Fit Out has continued its high level of performance. Its secured order book as at 30 June was £581m, up 42% from the year end and is a record high for the division, providing confidence in the full year and beyond.
  • Property Services is delivering its expected margin improvement as volumes have been restored to their normal run-rates.
  • Partnership Housing has continued to see high levels of market demand across the first half and further margin and profit growth is expected through the rest of the year.
  • Urban Regeneration is trading as expected as its development schemes progress to plan.

The group will announce its half year results to 30 June 2021 on 4 August 2021.

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