Morgan Sindall says fit-out orders are driving performance

Morgan Sindall Group has provided a trading update on its outlook for the 2023 financial year. 

The firm said its full-year performance is expected to show more of a weighting towards the first half than in recent years.   

This is consistent with its trading update in May: “Based on the current visibility of workload for delivery through the remainder of the year, the Group is confident of delivering a full year performance which is in line with its expectations and with more of a weighting towards the first half than in recent years.” 

This is mainly due to the performance of the Group’s Fit-Out division, which continues to perform well since its last report. “Fit-Out’s trading has been very strong and its order book and enquiry levels provide confidence for the rest of the year,” May’s report states. 

The Fit-Out division is expected to show profit in the first half of 2023 around 40% above the level reported for the same period last year (FY2022). 

Consequently, the momentum in the Group’s Fit-Out division and its forward order book for the second half of FY2023 – together with anticipated net prospects for the rest of the Group – means Board members expect full-year profits for Morgan Sindall to be ahead of previous expectations. 

The Group will announce its half-year results to 30 June on 3 August. 

Morgan Sindall employs around 7,200 people and operates in the public, regulated and private construction and regeneration sectors.   

It has an annual revenue of £3.6 billion and reports through five divisions of Construction and Infrastructure, Fit-Out, Property Services, Partnership Housing and Urban Regeneration. 

During its last trading update in May, the Group’s secured workload for 31 March 2023 was £8.8 billion, up 4% from the year-end and up 2% on the prior year. 

This comprised a construction secured order book of £4.9 billion, up 7% from the year-end and up 9% versus the prior year, and a regeneration order book of £3.9 billion, up 1% from the year-end and down 6% on the prior year. 

Average daily net cash from 1 January to 2 May was £281 million; the same period last year was £278 million. 

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