Firm had been expected to post 拢85m pre-tax profit this year
A bullish Morgan Sindall delivered more positive news for investors this morning when it said it was on track to beat its year-end forecasts.
In August, the firm posted another set of impressive figures with pre-tax profit up 19% to 拢35.5m on turnover flat at 拢1.4bn in the six months to June.
Full year pre-tax profit was upgraded at the time to around 拢85m from earlier predictions of 拢81m.
But in a trading update this morning, chief executive John Morgan said: 鈥淲e now expect to deliver a full year performance slightly above the Board鈥檚 previous expectations.鈥�
It said its construction and infrastructure divisions were expected to hike margins further this year with the pair having been given a medium-term target of 2.5% and 3% respectively.
In its half year results, Morgan Sindall said its construction business, which is working on a new secondary school (pictured) in Hackney, east London, and recently won a 拢27m deal to build a new secondary school in Neath, south Wales, posted operating margins of 2% while infrastructure posted 2.1%.
It said the divisions鈥� 鈥渃ontract selectivity and risk management and its full year performance is expected to show further margin improvement over last year鈥�.
And it said its fit-out business would have a 鈥渟trong performance鈥� in the second half after workloads in the first six months slipped 4% to 拢407m with operating margins dropping to 4% from 4.4% last time.
Average daily net cash for the full year is expected to be in excess of 拢100m, higher than forecast at the half year.
Total secured workload for the firm in the nine months to September was 拢7.3bn, up 10% from the year end position.
By 10 45am, shares had risen 3.5% to 1346p on the back of the news.
No comments yet