Construction and infrastructure divisions have both outperformed expectations, firm adds
Morgan Sindall is still on track for a record year thanks to ongoing strength in the fit-out, construction and infrastructure markets, the firm said this morning.
In a trading update, the firm said that since publishing record interim results in August 鈥済eneral market conditions have remained challenging yet manageable鈥�.
Chief executive John Morgan said: 鈥淎gainst this backdrop, our high-quality secured order book and our operational delivery capabilities give us great confidence for the rest of the year and we鈥檙e on track to deliver a full year performance which is in line with our expectations.鈥�
Analysts have previously said they are expecting the firm to post revenue of 拢3.67bn this year with the consensus for pre-tax profit coming in at around 拢134m. Pre-tax profit last year was down to 拢85m after the firm was hit by a building safety exceptional charge.
In this morning鈥檚 update, Morgan Sindall said both construction and infrastructure had performed better than expected, while the fit-out division had continued to trade strongly.
It added that the fit-out order book for the rest of the year meant the division was on track to turn in a result slightly above the top end of its medium-term target of an annual operating profit within the range of 拢50m-拢70m.
The firm鈥檚 partnership housing operation, Lovell, was progressing as planned, it said, with the only blot in this morning鈥檚 update the performance of its property services arm where it said conditions have remained difficult.
Morgan Sindall is rejigging this part of the business but admitted 鈥渢his has been slower than expected and the loss in the year is now anticipated to be higher than previously expected鈥�.
The group鈥檚 order book at the end of September was up 7% on its 2022 year-end number to 拢9.1bn.
The firm is set to release its 2023 results next February.
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