Morgan Sindall Group Reports Record First Half with Strong Revenue and Profit Growth
Morgan Sindall Group reported a record first half of the year, driven by strong revenue growth and improved profitability. The company's revenue rose 8% to £2.6 billion, while operating profit increased 21% to £112 million and pre-tax profit also climbed 21% to £116 million. Strong cash generation was highlighted with average daily net cash reaching £423 million, and the interim dividend raised by 10% to 55p per share. The Fit Out division led performance, delivering a 19% increase in profit due to strong project execution and favorable contract completions. The Construction segment also performed well with a 47% rise in profits, prompting an upward revision of its medium-term margin target to 3.5%-4%. However, housing-related businesses faced challenges as Partnership Housing revenue dropped by 14%, while Mixed Use Partnerships posted a small loss due to weak market conditions. Despite the underperformance in certain sectors, management reaffirmed full-year expectations and emphasized that Morgan Sindall's diversified business model is supporting continued growth. The company maintains strong visibility with an order book of £19.5 billion.
Topics: cash generation dividend increase operating profit revenue growth