Strong performance from fit out, improvements in construction and infrastructure
Morgan Sindall is anticipating an increase in its pre-tax profit to £23.5m for the first six months of 2017, up 45% on the same period a year ago.
In a trading update, the firm said its first half performance had been “strong”, driven “primarily by margin and profit growth in fit out, and by margin improvement in construction and infrastructure”.
The group’s urban regeneration made a lower contribution than in the prior year period “due to the phasing of its scheme completions”, the group said.
Morgan Sindall’s partnership housing and urban regeneration arms “both traded as expected”, while there were “modest profit contributions” from its property services and investments businesses.
The trading statement added: “The performance of fit out in the first half, its current trading patterns and the forward visibility provided by the size and quality of its order book, indicate an out-turn for the year for fit out which is much stronger than previously expected.
“Taken together with the expected margin improvement in construction and infrastructure, and the second half weighting to partnership housing, the group now anticipates that its 2017 full year results will be significantly ahead of its previous expectations.”
Morgan Sindall will announce its half year results to 30 June 2017 on 8 August 2017.