Firm buoyed by ongoing fit-out boom
Morgan Sindall has said it is on course to meet analysts鈥� expectations of more than 拢130m pre-tax profit this year, the firm confirmed in a trading update this morning.
Analysts 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.
It said its fit-out and construction businesses were performing well with the former described as 鈥渧ery strong鈥�.
But in line with housebuilders in general, the firm said its partnerships housing business was below prior year levels while margins at its property services arm had been hit by 鈥渄isappointing contract delivery鈥�.
Its order book at the end of March was 拢8.8bn, a rise of 2% on the same period last time while average daily net cash from 1 January to 2 May was 拢281m, up from 拢278m for the same period last year.
Morgan Sindall chief executive John Morgan said he expected average daily net cash for the full year to be around 拢250m.
The said a cladding charge to fix historic defects on buildings meant pre-tax profit last year was dragged down a third to 拢85m on turnover up 12% to 拢3.6bn
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