Morgan Sindall ploughs more money into housing business

Morgan Sindall Group is planning to invest more money into its Housing business as the market picks up. 

The company said it will increase capital to its Partnership Housing division to £330 million this financial year, as the business seeks to secure its future growth. 

The contractor said the move followed an improved housing market since the start of the year, giving it confidence to invest more than previous guidance. 

It comes as the group also reported in a trading update a secured order book of £9 billion, up 1 per cent from the year end and 1 per cent on the prior year. 

Meanwhile, Morgan Sindall reported again a very strong first-half trading performance from its Fit-Out division, which is expected to show significant growth on the previous financial year and a secured order book for the rest of FY2024. 

The group’s Construction and Infrastructure businesses both traded as expected in the first half, it said. 

“[They] have both performed as expected, underpinned by their continued focus on long-term client relationships, disciplined contract selectivity, risk management and project delivery,” said Morgan Sindall. 

The first-half result for its Property Services division will be impacted by exit costs relating to an underperforming contract; while Urban Regeneration should see more activity in the second half.  

The average daily net cash position for Morgan Sindall between 1 January and 30 April was £389 million, compared to £281 million for the same period last year. 

The group anticipates an average daily net cash position for the full year “well in excess” of £300 million. 

John Morgan, group chief executive, said: “Since the start of the year, trading has been as expected and looking ahead to the rest of the year, our high-quality secured order book gives us great confidence of delivering a full year performance which is in line with our expectations.” 

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