Morgan Sindall has today said its financial performance for 2024 is expected to be “significantly ahead” of expectations, following “exceptional” growth by the company’s Fit-Out Division.
Since its last trading update in August, profits within the firm’s Fit-Out business have kept growing due to “exceptional volumes” and are now forecast to materially exceed the group’s previous expectations.
Fit-Out’s secured order book as of 30 September 2024 was valued at £1.3 billion, up 15 per cent from the 2023 year-end position, providing Morgan Sindall with a confident outlook for this year and beyond.
The group also said its Construction and Infrastructure divisions are both on target to meet their revenue and medium-term margin targets – adding profits within the Partnership Housing business are forecast to be slightly ahead of prior expectations, due to long-term programmes within the public sector.
Elsewhere, the Mixed-Use Partnerships division has secured preferred bidder positions for several sizeable schemes across the UK, despite trading remaining subdued.
And, lastly, Property Services is expected to return to profit in 2025 as its remediation plan remains on track for completion by the end of this year.
Morgan Sindall reported a high-quality secured group order book value of £8.9 billion at 30 September 2024, up 3 per cent from the half year and in line with the 2023 year-end position.
Its balance sheet for the period between 1 January and 18 October showed a daily average net cash position of £374 million, compared to £273 million in the prior year. The average daily net cash for the full year is expected to be more than £350 million.
In August, 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).
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