Firm turns in record set of interim results
Morgan Sindall turned in a record set of half-year figures this morning as the firm again upgraded expectations for its booming fit out business.
The firm said it expected annual operating profit at the division to now be between 拢80m and 拢100m in the medium term 鈥� up from the 拢60m to 拢85m it had predicted at the start of the year.
Its fit out business, which is working on the Citibank scheme in Canary Wharf as well as the new HSBC headquarters at St Paul鈥檚, saw operating profit jump 41% to 拢58m with turnover up a third to 拢838m.
Chief executive John Morgan said the firm was continuing to jobs on the back of companies wanting to spruce up workplaces as more workers returned to the office.
He added the firm had largely been unaffected by ISG鈥檚 demise but added: 鈥淲hen they went bust it made everyone realise a strong balance sheet is very important.鈥�
Its net cash balance at the end of June was up 10% to 拢390m while its order book stood at 拢12bn, up 拢600m from the end of last year.
The firm also raised targets at its construction division with revenue at the business upgraded to 拢1.5bn over the medium term from 拢1bn. Expected operating margins remained the same at between 3% and 3.5%.
Revenue from its partnership housing business was up 6% to 拢405m with operating profit up 13% to 拢13m.
Morgan said the housing market was 鈥渟till not as good as we expected by now鈥� and pointed to Wales, where the Help to Buy initiative is still up and running, as an example of where the housing sector could be boosted. 鈥淎ny housebuilder would welcome a stimulus.鈥�
The overall market he added was 鈥渘ormal. It鈥檚 not bad but not great. GDP growth is lower than we鈥檇 like it to be. Better GDP means more money to spend on capital projects.鈥�
Group revenue was up 7% to 拢2.4bn with pre-tax profit up 36% to 拢95m.
No comments yet