Morgan Sindall hails record FY results despite 'market headwinds'

Construction group Morgan Sindall hailed "record" full-year results on Thursday despite market headwinds.

In the year to the end of December 2023, adjusted pre-tax profit rose 6% to £144.6m, while revenue grew 14% to £4.1bn. The total dividend per share was lifted 13% to 114p and the order book came in at £8.9bn, up 5% on the previous year.

Morgan Sindall pointed to a continued "market-leading" performance from the Fit Out business, with operating profit up 38% to £71.8m and revenue 14% higher at £1.1bn.

The performance of the construction segment was "good", it said, with operating profit up 15% to £25.9m and revenue 18% firmer at £967m.

The company noted "strong" profit and margin growth in the infrastructure arm, with operating profit up 31% to £38.5m and revenue 15% higher at £887m .

Morgan Sindall’s Partnership Housing unit enjoyed a "robust" performance against challenging market conditions, it said, with operating profit down 18% at £30.5m and revenue 20% higher at £838m.

Meanwhile, the property services segment continued to be dented by cost pressures and operational challenges, making an operating loss of £16.8m, versus a profit of £4.3m a year earlier.

Chief executive John Morgan said: "2023 was another record year for the group and these strong results reflect the high quality of our operations and the talent and commitment of our people.

"Despite facing market headwinds in the year and the disappointing losses in Property Services, the diversified nature of our operations and capabilities has allowed us to continue to make significant strategic and operational progress. In addition, our focus on positive cash flow together with our strong balance sheet has positioned us well to benefit over the long term from the opportunities available in our markets.

"Looking ahead, while there remains some uncertainty in the wider economy, reducing inflation and the prospect of lower interest rates provides a backdrop of confidence for the year ahead."

The group said it was on track to deliver 2024 results in line with its current expectations.