Firm says construction and fit out businesses beating expectations
Morgan Sindall has issued its second profit upgrade of the year with the £5bn turnover firm now saying it expects its 2026 numbers to be “significantly” ahead of previous expectations.
The firm turned in a record set of figures last year with topping £5bn for the first time last while pre-tax profit was up 35% to £232m.
This morning, the firm said: “The Group now anticipates that its full year results for 2026 will be significantly ahead of its previous expectations following strong trading activity and increased visibility for the remainder of the year from its construction and fit out divisions.”
It said revenue from its construction business was expected to be around £1.4bn “due to increased visibility for the remainder of the year supported by its high-quality orderbook and work at preferred bidder stage”, adding that operating margins would be at the top end of its 3% to 3.5% target. It added that margins from its infrastructure work were set to be at the top end of its 3.75% to 4.25% target.
Meanwhile, the firm’s fit out business continues to boom with profit “now expected to be significantly ahead of previous expectations and further exceed the top-end of its medium-term target of £80m-£100m”.
The firm said it growth at its partnerships housing business had cooled and the firm was prioritising starting jobs on site.
It added: “While private housing sales activity levels in the first quarter have improved relative to the same period last year, near-term consumer sentiment continues to remain subdued due to wider macro-economic events.”
In a note, broker Investec said it had upgraded its profit forecast for the year from £219m to £235m on revenue of £5.1bn.
Investec added: “Fit out is once again the main driver of the upgrade as it enjoys a strong trading backdrop but with construction also seeing good momentum in the top line and margins. Given the recently weaker trends seen in the private housing market, it is not surprising that profit growth in partnership housing has been tempered.”
Morgan Sindall is set to announce its interim results on 23 July.
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