Morgan Sindall profits surging amid 'much stronger' fit-out trading

Morgan Sindall Group revealed its profits are going to be "substantially" ahead of expectations thanks to margin and profit growth in office fit-out and margin improvement in construction and infrastructure in the first half of the year.

Profit before tax for the group's six months to 30 June are expected to come in at roughly £23.5m, around 45% higher than the previous year's.

Cash generation has been strong too, with average daily net cash for the first half of £132m and net cash in the bank of £97m.

The Partnership Housing and Urban Regeneration divisions have both traded as expected, with the latter lower than in the prior year period due to the phasing of its scheme completions, while there were "modest" profit contributions from both Property Services and Investments.

For the full year results "will be significantly ahead of its previous expectations", Morgan Sindall said, thanks to "much stronger" prospects for Fit Out based on current trading, plus the size and quality of its order book, plus expected margin improvement in Construction & Infrastructure and the second half weighting to Partnership Housing.

Half year results will be published on 8 August.