Morgan Sindall Group PLC (LSE:MGNS), the partnerships, fit out and construction services group, saw its shares rise 10% to 4,914p after it said full-year pre-tax profit would be significantly ahead of previous expectations, driven by strong trading in its Construction and Fit Out divisions.
Fit Out was the standout performer, with profits now expected to significantly exceed the top end of the division's medium-term target range of £80 million to £100 million, as confidence levels improved in the conversion of preferred bidder work and future tender opportunities.
Construction's operating margin is expected to finish at the top end of its medium-term target range of 3.0% to 3.5%, with revenues now expected to reach approximately £1.4 billion, supported by a high-quality orderbook and increased visibility for the remainder of the year.
Infrastructure also performed ahead of some expectations, with its operating margin now anticipated at the top end of its medium-term target range of 3.75% to 4.25%.
Partnership Housing struck a more cautious note, with profits expected to show only modest growth compared to the prior year figure of £42 million, as near-term consumer sentiment remains subdued despite some improvement in private housing sales activity in the first quarter.
Mixed Use Partnerships profits are expected to be in line with previous guidance, with four projects starting on site during the first quarter and a further 13 planned for the remainder of the year.
Daily average net cash for the period from 1 January to 14 April 2026 was £445 million, up from £372 million over the same period last year, with the full-year average expected to remain in excess of £400 million.
Peel Hunt, which has an "add" recommendation and a 5,700p price target on Morgan Sindall, expects to lift its 2026 full-year pre-tax profit forecast by around 8% to 9% following the trading update, resulting in earnings per share of approximately 360p.
The broker expects a slightly smaller upgrade of around 5% to 7% to its 2027 profit forecast.
At the current share price, Morgan Sindall trades on around 12.5 times Peel Hunt's increased 2026 earnings estimate.