AUS
NZ
UK
CA
USA
IND
Highlights
- Morgan Sindall's Fit Out division has significantly exceeded expectations, driving overall profit growth for 2024, with a secured order book up 15% from 2023.
- The group's secured order book has grown to £8.9bn, a 3% rise from mid-year, ensuring a high-quality pipeline for future projects.
- Morgan Sindall’s average daily net cash for 2024 is expected to surpass £350m, reflecting a solid financial position for continued growth.
Morgan Sindall Group plc (LSE:MGNS), a leading construction, partnerships, and fit-out services company, has provided an optimistic update on its trading and financial outlook for 2024. Building on a strong performance in its Fit Out division, the company now expects its full-year financial results to surpass previous expectations, signalling solid momentum across key sectors.
Since its last update in August 2024, Morgan Sindall has seen material profit growth, particularly from its Fit Out division, which has outpaced previous forecasts. As a result, the group anticipates a significant improvement in its full-year results for 2024. The company’s diverse divisions have shown a mix of performances, but the overall outlook is buoyant.
Division-by-Division Performance:
- Partnership Housing: This division is projected to deliver profits slightly above previous expectations, supported by the continued growth of long-term partnerships with the public sector. This area remains a stable contributor to the group’s overall success.
- Mixed Use Partnerships: Although trading in this segment has been subdued, the division has successfully secured preferred bidder positions for several major projects across the UK. These future opportunities offer potential for long-term growth despite the current dip in activity.
- Fit Out: The standout performer of 2024 has been the Fit Out division, where profits have surged beyond earlier projections. This growth is attributed to an exceptionally high volume of work, contributing to a robust order book valued at £1.3bn as of September 30, 2024, marking a 15% increase from the previous year-end figure. This performance underpins confidence in sustained growth through the remainder of the year and beyond.
- Construction and Infrastructure: These divisions remain on track to meet their medium-term targets for both revenue and profit margins. Their steady performance continues to support the group's overall results.
- Property Services: The remediation plan for Property Services is progressing as planned, with completion expected by the end of 2024. The division is anticipated to return to profitability in 2025.
Group Secured Order Book:
Morgan Sindall’s secured order book stood at £8.9bn as of September 30, 2024, reflecting a 3% increase from the half-year point and aligning with the order book position at the close of 2023. This high-quality workload provides the group with a strong pipeline of future projects, reinforcing confidence in its long-term growth prospects.
Financial Performance:
In terms of its financial health, the group reported an average daily net cash of £374m for the period from January 1 to October 18, 2024. This figure includes £45m held in joint operations or for designated suppliers, and it marks a significant increase from £273m during the same period in 2023. The company expects to maintain average daily net cash of over £350m for the full year, in line with previous forecasts.
