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Morgan Sindall on track for 'slightly' better 2018 results as fit out provides boost
Construction services business Morgan Sindall said on Friday that it's on track to deliver 2018 results that are "slightly ahead" of its previous expectations following another strong performance from its fit-out division.
In an update for the period from 1 January to date, the company said the positive momentum across the group coming into the year has continued, with overall trading strong.
The construction and infrastructure business has delivered further margin growth as expected, thanks to an ongoing focus on quality of earnings, while property services has returned to profit.
The fit out division was the standout performer, meanwhile, experiencing another period of strong operational delivery. Based on its performance to date and the order book for the rest of the year, the group expects it to deliver a result that is higher than previously expected and in line with last year.
The partnership housing and urban regeneration businesses have progressed their development schemes as planned and as usual will both likely show a second half weighting to results, Morgan said.
At the end of March, the company's order book stood at £3.7bn, while its regeneration and development pipeline was £3.2bn.
Chief executive John Morgan said: "We have had a good start to the year and all divisions are continuing to make strategic and operational progress. Our balance sheet and cash position are both very strong and give us the flexibility to continue focusing on quality of earnings in our construction activities, while investing in our regeneration activities to drive long-term value. Our strong order book and customer relationships enable us to look to the future with confidence."
Numis lifted its 2018 pre-tax profit and earnings per share estimates by £4m/5% based on the ongoing strength of the fit out business.