Morgan Sindall Group PLC (LSE:MGNS) shares rose 7% to 5,383p after the construction and regeneration group issued an unscheduled trading update pointing to stronger-than-expected performance in its Fit Out division.
The company said trading in 2025, due to be reported in full on 25 February, was in line with current market expectations.
However, it flagged a stronger-than-expected start to the year in Fit Out, driven by the conversion of preferred-bidder work and supported by a healthy pipeline.
Management now expects the division to deliver a result “significantly above” its medium-term operating profit target range of £80 million to £100 million.
Peel Hunt said this implied a roughly 10% to 12% increase to current 2026 consensus profit before tax forecasts of £198 million, compared with its own estimate of £195 million.
The broker noted that the rest of the group was trading in line with expectations.
Shares are trading on around 16 times forecast 2026 earnings per share, before taking account of potential upgrades, Peel said, adding that it expects growing pressure on management over capital allocation strategy.