Morgan Sindall delivers another record first half

Morgan Sindall has delivered another record first half financial performance, with solid growth reported across its key business divisions. 

Group revenue for the six months to 30 June 2024 was £2.21 billion, up 14 per cent from the £1.93 billion achieved in the same period in the previous year, generating a pre-tax profit of £70.1 million, 21 per cent ahead of HY2023 (£58 million).   

The partnerships, fitout and construction services group generated an operating profit in the first half of £65.5 million, 14 per cent ahead of the prior financial year (£57.3 million).  

Morgan Sindall’s balance sheet showed a net cash position of £351 million, £88 million ahead of HY2023, and a solid and stable high quality order book of £8.7 billion compared to £8.9 billion in FY2023. 

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. 

Adding: “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.” 

Morgan Sindall’s Construction division delivered good growth in the period, with revenue up 10 per cent to £519 million at an operating margin of 2.7 per cent, generating an operating profit of £14.1 million, an 18 per cent rise on the prior year. 

The Fitout business also saw increased revenues, returning an operating profit of £41.3 million, up 36 per cent, with an operating margin of 6.6 per cent (HY2023: 6.1 per cent). 

In Infrastructure, revenue was also up, by 24 per cent to £530 million, generating an operating profit of £19.7 million, compared to £15.9 million the year before. 

Meanwhile, the Partnership Housing business delivered a revenue increase of 2 per cent to £381million, while operating profits were £11.7 million, up 16 per cent. 

However, in Property Services, early release from a small number of contracts led to first half operating losses of £11 million, following a £4.1 million operating loss in the prior period. The contractor added the business is being positioned to return to profit in 2025. 

Morgan said: “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.  

“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.” 

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